With a momentary hiss of gas escaping a canister, the limp red balloon suddenly came to life, filled with helium.

After a practiced twirl of her fingers, Anastasia Bukhiyeva, an employee at a party supply shop in Moscow, attached a string, and the balloon floated up to a net under the ceiling, joining dozens of others in this upside-down system of storage.

Russian party balloons are more or less the same as balloons anywhere else but for one distinction: The helium is from Russia.

Soon, though, Russian helium could be used all over the world.

A huge production facility in Siberia is nearing completion, one that some analysts say could disrupt the global market for the lighter-than-air gas, which plays an increasingly critical role in industries like medical technology, space exploration and national security.

The United States and Qatar together generate the vast majority of the world’s helium. But Russia, already self-sufficient, plans to become a major exporter starting next year.

This ambition, in the works for years now, coincides with the U.S. government’s exit from the helium business after decades as a major supplier. It has raised worries that Russia could bring to helium the same politically influenced trading practices that worry buyers of Russian natural gas and crude oil.

Like oil and natural gas, helium is a finite resource. It is usually extracted as a byproduct of natural gas, and it is slowly becoming scarcer because, once released, it is too light to be contained by gravity and floats into space, lost forever.

And analysts expect demand to rise over time.

Initially, the new Russian supply might lower prices, said Michael Dall, an economist specializing in industrial chemicals at research firm IHS Markit. But longer term, he said, “the dynamics could become more political, something similar to OPEC,” which manipulates prices by raising or lowering the production of oil.

“The geopolitical risks of threats to supply, and potential supply outages, will rise,” Dall said. “And the way demand is going, helium is going to be highly sought after.”

Liquid helium is the coldest thing on Earth, with a boiling point of minus 452 degrees Fahrenheit. This exceptional property, plus the fact that it is not flammable and does not interact with other gases, makes it essential in devices ranging from MRI machines to rocket engines.

Liquid helium circulates inside MRI machines to cool the superconducting magnets that produce the scans that help doctors detect diseases in patients. In space travel, helium is used several ways, including to pressurize tanks of rocket fuel. (It remains a gas even at the low temperatures of liquid hydrogen.)

It is useful in welding and in printing computer chips, and if magnetic levitation trains ever take off, it could be a critical resource in that industry, said Christopher J. Cramer, vice president for research at the University of Minnesota, which buys helium for its laboratories.

Given its wide use, “people began to get nervous about helium supply,” Cramer said.

Medical device makers and scientists have questioned helium’s continued use in party balloons, where about 10% of the world’s supply winds up. The American Chemical Society calls helium an endangered element.

“Just like certain animals here on Earth, there are endangered elements, too,” the society’s website says. The society recommends that people “opt not to buy helium balloons.”

Siberia holds some of the largest-known untapped reserves of natural gas with high levels of helium, and Russia is preparing for a major leap in production when its new complex of factories comes online next year, operated by Gazprom, Russia’s huge natural gas producer. The company will export canisters of cryogenically cooled liquid helium from the Pacific Ocean port of Vladivostok, well-positioned to supply China and the technology industry on the U.S. West Coast.

Others also see opportunity in helium. Qatar plans new refineries, and companies are prospecting for new deposits in the United States, Canada and Africa, said Phil Kornbluth, a helium analyst and founder of a consultancy focused on the global market for the gas.

Still, after ramping up to full production in the middle of this decade, Russia expects to produce 25% to 30% of all helium used worldwide.

It will do so without breaking a sweat, so vast are its reserves, analysts say. In fact, Gazprom has the ability to reserve extracted helium in Siberia by injecting it back into the natural gas fields — essentially taking its helium off the market — which is one reason for concerns about price manipulation in the future. Gazprom declined to comment for this article.

In other commodity markets where Russia has a finger on the scale of prices, such as natural gas in Europe, a complicated mix of politics and economics influences the Kremlin’s decisions. Its Nord Stream 2 natural gas pipeline project, intended to connect Russian gas fields to Germany, for example, has been fiercely opposed by the White House as a means of stoking dependence on Russia.

Helium has been a focus of countries’ national security policies for more than a century.

The U.S. government began stockpiling the gas in the 1920s, when zeppelins seemed to have a future in military air power, a role that never came. Still, the Federal Helium Reserve holds in the porous rock of an abandoned gas field outside Amarillo, Texas, about 2.8 billion cubic feet of helium owned by the American people — enough for an armada of blimps, or about 3 billion balloons if Congress decided to throw a big party instead.

The 1996 Helium Privatization Act required the Bureau of Land Management, which runs the site, to sell the entire reserve to privatize the helium market. Periodic auctions became a major source of helium for industry and created a benchmark for global prices, affecting the cost of everything from balloons to MRI scans. Private American companies will still produce helium. But the government reserve is expected to hold its last auction in 2023.

The change in the market is coinciding with Russia’s debut as a major supplier.

Gazprom said in September that its Siberian helium machine was more than 60% completed. Photos of the main refinery depict a panoramic scene of pipes and cooling towers, rising in a remote forest. When it opens, it will be the largest helium plant in the world, Gazprom says.

“Possibly, this factory could hand Russia world leadership in helium,” a Russian business news site, Rambler, reported in an article exuberantly headlined “A Flight to the Sun: A New Russian Factory Will Influence the Global Helium Market.”

With so much helium expected to begin coming online next year, Russian balloon sellers are hoping for some benefit, too. In the Soviet era, the gas was reserved mostly for the space industry, the military and scientists.

Helium balloons were an afterthought and a rarity. “I never had helium balloons when I was a child,” said Bukhiyeva, the clerk at the Moscow store. It is called Shariki 24, or Balloons 24, open around the clock.

She sells mylar unicorns and rainbows and has balloons in the shapes of all the letters in the Cyrillic alphabet, to spell messages.

Bukhiyeva saw no downside to Russia’s becoming a helium superpower. Balloons will become cheaper, she said. “It will be great.” 
&nbsp;

With a momentary hiss of gas escaping a canister, the limp red balloon suddenly came to life, filled with helium. After a practiced twirl of her fingers, Anastasia Bukhiyeva, an employee at a party supply shop in Moscow, attached a string, and the balloon floated up to a net under the ceiling, joining dozens of others in this upside-down system of storage.

With a momentary hiss of gas escaping a canister, the limp red balloon suddenly came to life, filled with helium. After a practiced twirl of her fingers, Anastasia Bukhiyeva, an employee at a party supply shop in Moscow, attached a string, and the balloon floated up to a net under the ceiling, joining dozens of others in this upside-down system of storage. Russian party balloons are more or less the same as balloons anywhere else but for one distinction: The helium is from Russia. Soon, though, Russian helium could be used all over the world. A huge production facility in Siberia is nearing completion, one that some analysts say could disrupt the global market for the lighter-than-air gas, which plays an increasingly critical role in industries like medical technology, space exploration and national security. The United States and Qatar together generate the vast majority of the world’s helium. But Russia, already self-sufficient, plans to become a major exporter starting next year. This ambition, in the works for years now, coincides with the U.S. government’s exit from the helium business after decades as a major supplier. It has raised worries that Russia could bring to helium the same politically influenced trading practices that worry buyers of Russian natural gas and crude oil. Like oil and natural gas, helium is a finite resource. It is usually extracted as a byproduct of natural gas, and it is slowly becoming scarcer because, once released, it is too light to be contained by gravity and floats into space, lost forever. And analysts expect demand to rise over time. Initially, the new Russian supply might lower prices, said Michael Dall, an economist specializing in industrial chemicals at research firm IHS Markit. But longer term, he said, “the dynamics could become more political, something similar to OPEC,” which manipulates prices by raising or lowering the production of oil. “The geopolitical risks of threats to supply, and potential supply outages, will rise,” Dall said. “And the way demand is going, helium is going to be highly sought after.” Liquid helium is the coldest thing on Earth, with a boiling point of minus 452 degrees Fahrenheit. This exceptional property, plus the fact that it is not flammable and does not interact with other gases, makes it essential in devices ranging from MRI machines to rocket engines. Liquid helium circulates inside MRI machines to cool the superconducting magnets that produce the scans that help doctors detect diseases in patients. In space travel, helium is used several ways, including to pressurize tanks of rocket fuel. (It remains a gas even at the low temperatures of liquid hydrogen.) It is useful in welding and in printing computer chips, and if magnetic levitation trains ever take off, it could be a critical resource in that industry, said Christopher J. Cramer, vice president for research at the University of Minnesota, which buys helium for its laboratories. Given its wide use, “people began to get nervous about helium supply,” Cramer said. Medical device makers and scientists have questioned helium’s continued use in party balloons, where about 10% of the world’s supply winds up. The American Chemical Society calls helium an endangered element. “Just like certain animals here on Earth, there are endangered elements, too,” the society’s website says. The society recommends that people “opt not to buy helium balloons.” Siberia holds some of the largest-known untapped reserves of natural gas with high levels of helium, and Russia is preparing for a major leap in production when its new complex of factories comes online next year, operated by Gazprom, Russia’s huge natural gas producer. The company will export canisters of cryogenically cooled liquid helium from the Pacific Ocean port of Vladivostok, well-positioned to supply China and the technology industry on the U.S. West Coast. Others also see opportunity in helium. Qatar plans new refineries, and companies are prospecting for new deposits in the United States, Canada and Africa, said Phil Kornbluth, a helium analyst and founder of a consultancy focused on the global market for the gas. Still, after ramping up to full production in the middle of this decade, Russia expects to produce 25% to 30% of all helium used worldwide. It will do so without breaking a sweat, so vast are its reserves, analysts say. In fact, Gazprom has the ability to reserve extracted helium in Siberia by injecting it back into the natural gas fields — essentially taking its helium off the market — which is one reason for concerns about price manipulation in the future. Gazprom declined to comment for this article. In other commodity markets where Russia has a finger on the scale of prices, such as natural gas in Europe, a complicated mix of politics and economics influences the Kremlin’s decisions. Its Nord Stream 2 natural gas pipeline project, intended to connect Russian gas fields to Germany, for example, has been fiercely opposed by the White House as a means of stoking dependence on Russia. Helium has been a focus of countries’ national security policies for more than a century. The U.S. government began stockpiling the gas in the 1920s, when zeppelins seemed to have a future in military air power, a role that never came. Still, the Federal Helium Reserve holds in the porous rock of an abandoned gas field outside Amarillo, Texas, about 2.8 billion cubic feet of helium owned by the American people — enough for an armada of blimps, or about 3 billion balloons if Congress decided to throw a big party instead. The 1996 Helium Privatization Act required the Bureau of Land Management, which runs the site, to sell the entire reserve to privatize the helium market. Periodic auctions became a major source of helium for industry and created a benchmark for global prices, affecting the cost of everything from balloons to MRI scans. Private American companies will still produce helium. But the government reserve is expected to hold its last auction in 2023. The change in the market is coinciding with Russia’s debut as a major supplier. Gazprom said in September that its Siberian helium machine was more than 60% completed. Photos of the main refinery depict a panoramic scene of pipes and cooling towers, rising in a remote forest. When it opens, it will be the largest helium plant in the world, Gazprom says. “Possibly, this factory could hand Russia world leadership in helium,” a Russian business news site, Rambler, reported in an article exuberantly headlined “A Flight to the Sun: A New Russian Factory Will Influence the Global Helium Market.” With so much helium expected to begin coming online next year, Russian balloon sellers are hoping for some benefit, too. In the Soviet era, the gas was reserved mostly for the space industry, the military and scientists. Helium balloons were an afterthought and a rarity. “I never had helium balloons when I was a child,” said Bukhiyeva, the clerk at the Moscow store. It is called Shariki 24, or Balloons 24, open around the clock. She sells mylar unicorns and rainbows and has balloons in the shapes of all the letters in the Cyrillic alphabet, to spell messages. Bukhiyeva saw no downside to Russia’s becoming a helium superpower. Balloons will become cheaper, she said. “It will be great.”

Big push into helium could have the world on Russia’s string

In a move to cement energy security, Russian President Vladimir Putin and Chinese President Xi Jinping launched a natural gas pipeline linking Siberia to northeast China.

"This is a genuinely historic event not only for the global energy market but above all for us, for Russia and China," Putin said via a video link in Sochi.

"This step takes Russo-Chinese strategic cooperation in energy to a qualitative new level and brings us closer to (fulfilling) the task, set together with Chinese leader Xi Jinping, of taking bilateral trade to $200 billion by 2024," the Russian president added.

The new pipeline also called "Power of Siberia" pipeline will start from the Russian border in Heilongjiang and will link China's northeastern province&nbsp;Jilin and Liaoning.

Xi said it was "a landmark project of bilateral energy cooperation" and an "example of deep integration and mutually beneficial cooperation".

Russia is in fact set to boost gas trade by supplying to European countries - its principal market, while trying to set up its gas commerce elsewhere.

In January, Russia and Turkey will launch the TurkStream while Nord Stream-2 will boost gas output with Germany next year.

Ahead of the opening of the Siberia pipeline, Putin's spokesman Dmitry Peskov had said that the significance of the pipeline was hard to overestimate.

The pipeline will be fully operational in 2025.

Russian giant Gazprom will be supplying China with 38 billion cubic metres of gas annually through "swampy, mountainous, seismically active, permafrost and rocky areas with extreme environmental conditions", the Russian gas company said,&nbsp;with temperatures in the region often falling below 60 degrees Celsius.

Chinese vice foreign minister Le Yucheng said the pipeline would boost cooperation and allow the two countries "to complement each other's strengths and pursue common rejuvenation."

In a move to cement energy security, Russian President Vladimir Putin and Chinese President Xi Jinping launched a natural gas pipeline linking Siberia to northeast China.

In a move to cement energy security, Russian President Vladimir Putin and Chinese President Xi Jinping launched a natural gas pipeline linking Siberia to northeast China. "This is a genuinely historic event not only for the global energy market but above all for us, for Russia and China," Putin said via a video link in Sochi. "This step takes Russo-Chinese strategic cooperation in energy to a qualitative new level and brings us closer to (fulfilling) the task, set together with Chinese leader Xi Jinping, of taking bilateral trade to $200 billion by 2024," the Russian president added. The new pipeline also called "Power of Siberia" pipeline will start from the Russian border in Heilongjiang and will link China's northeastern province Jilin and Liaoning. Xi said it was "a landmark project of bilateral energy cooperation" and an "example of deep integration and mutually beneficial cooperation". Russia is in fact set to boost gas trade by supplying to European countries - its principal market, while trying to set up its gas commerce elsewhere. In January, Russia and Turkey will launch the TurkStream while Nord Stream-2 will boost gas output with Germany next year. Ahead of the opening of the Siberia pipeline, Putin's spokesman Dmitry Peskov had said that the significance of the pipeline was hard to overestimate. The pipeline will be fully operational in 2025. Russian giant Gazprom will be supplying China with 38 billion cubic metres of gas annually through "swampy, mountainous, seismically active, permafrost and rocky areas with extreme environmental conditions", the Russian gas company said, with temperatures in the region often falling below 60 degrees Celsius. Chinese vice foreign minister Le Yucheng said the pipeline would boost cooperation and allow the two countries "to complement each other's strengths and pursue common rejuvenation."

Putin, Xi inaugurate 'Power of Siberia' pipeline to boost energy ties

Poland's PGNiG state-owned natural gas company announced on Friday it would not extend a major contract with Russian gas giant Gazprom when it ends in 2022, thanks to its successful diversification of energy sources.

PGNiG said it had notified Gazprom about its "intent to terminate" a long-term so-called Yamal contract from 1996 on "December 31, 2022", according to a company press release.

Two-thirds of the gas consumed in Poland, about 10 billion cubic meters, is currently delivered by Russia under the Yamal contract.&nbsp;

An EU and NATO member, Poland has long wanted to wean itself off Russian gas, notably by having opened an LNG terminal on its Baltic coast capable of receiving LNG shipments from the US and the Middle East.

Polish companies have also acquired several gas fields in the North Sea and Warsaw has signed an agreement with Denmark on the construction of a pipeline under the Baltic Sea to ensure deliveries.

A former Soviet satellite state, Poland maintains that reliance on Russian energy supplies makes it vulnerable to political pressure from Moscow. Warsaw has also accused Gazprom of price gouging.

Along with the US, Ukraine and the Baltic states, Poland has lashed out against the Nord Stream 2 pipeline that runs under the Baltic Sea and is set to double shipments of Russian natural gas to Germany, the EU's biggest economy.

They warn that Moscow could seize on Europe's increased reliance on Russian gas to exert political pressure.

Poland's PGNiG state-owned natural gas company announced on Friday it would not extend a major contract with Russian gas giant Gazprom when it ends in 2022, thanks to its successful diversification of energy sources.

Poland's PGNiG state-owned natural gas company announced on Friday it would not extend a major contract with Russian gas giant Gazprom when it ends in 2022, thanks to its successful diversification of energy sources. PGNiG said it had notified Gazprom about its "intent to terminate" a long-term so-called Yamal contract from 1996 on "December 31, 2022", according to a company press release. Two-thirds of the gas consumed in Poland, about 10 billion cubic meters, is currently delivered by Russia under the Yamal contract. An EU and NATO member, Poland has long wanted to wean itself off Russian gas, notably by having opened an LNG terminal on its Baltic coast capable of receiving LNG shipments from the US and the Middle East. Polish companies have also acquired several gas fields in the North Sea and Warsaw has signed an agreement with Denmark on the construction of a pipeline under the Baltic Sea to ensure deliveries. A former Soviet satellite state, Poland maintains that reliance on Russian energy supplies makes it vulnerable to political pressure from Moscow. Warsaw has also accused Gazprom of price gouging. Along with the US, Ukraine and the Baltic states, Poland has lashed out against the Nord Stream 2 pipeline that runs under the Baltic Sea and is set to double shipments of Russian natural gas to Germany, the EU's biggest economy. They warn that Moscow could seize on Europe's increased reliance on Russian gas to exert political pressure.

Poland to end major Russian gas contract by 2022

Russia has truly entered the "great game" in Afghanistan. First, the<a href="http://www.wionews.com/south-asia/russia-offers-to-help-us-on-afghan-peace-talks-with-taliban-ria-195886"> Putin regime a few days</a> ago hosted the Taliban and former Afghan President Hamid Karzai in Moscow, just a few days after the US concluded its Doha talks with the Taliban.

It was an attempt by Russia to show it would not be sidelined in Afghan peace talks even decades after the Soviets left the country humiliated by the jihadists, the forerunner of the Taliban.

Now, Russia has its eyes set on Pakistan. Last year it had signed an intergovernmental agreement with the Pakistan government to discuss ways in which to import liquefied natural gas (LNG) to Pakistan, one of the biggest markets of the gas in the world.

Last Friday, Putin's regime signed a provisional agreement with the <a href="http://www.wionews.com/south-asia/once-spoiler-pakistan-starts-behind-scenes-aid-to-us-taliban-talks-196116">Imran Khan government </a>to allow state-run gas major Gazprom to conduct a "feasibility study" to construct an offshore pipeline to supply natural gas from the Middle East into Pakistan.

Both the LNG project and the latest Gazprom deal have raised eyebrows in Washington with US sanctions underway against Iran.

A few days ago Iran's oil minister Bijan Namdar Zanganeh had said the country had accepted a "Russian proposal" to construct a sub-sea pipeline for exporting natural gas to India. The pipeline would link Gujarat to the Guly of Oman through the Indian Ocean.

The Russia-Iran-India pipeline would reportedly carry 31.5 million cubic meters gas per day to energy-starved India. Iran's oil minister had said Russia had already reached an "understanding" meaning a MoU on the pipeline last year with preparations underway to get it ready in two years.

Russia was the undisputed power as a natural gas supplier after World War-II, however, it was overtaken by tiny Qatar which became the world’s largest exporter of liquefied natural gas.

In December last year, Qatar pulled out of OPEC as relations between Qatar and Saudi Arabia nosedived and the oil body turned its back on it. Qatar now seeks to increase its natural gas production, a fact not lost on the Russians.

Qatar is currently the largest supplier of LNG to India and is keen to increase its market share in the country. Qatar supplies 8.5 million tonnes a year of liquefied natural gas to India which is 40 per cent of India's energy shipment.

The Putin regime has increasingly played the "energy game" with markets in Europe, however, the Europeans are slowly breaking away from traditional energy sources and moving towards renewables namely solar and wind power. Germany already has a solar policy in place and hopes to exploit its wind turbines as it powers its economy on clean energy, other countries - Norway, Sweden, France hope to follow suit in order to balance climate change with economic concerns.

Security concerns also weigh on Europeans and Americans, after all, Gazprom had cut gas supply to Ukraine after it failed to pay up. The West also fears a re-run of the oil crisis in the 70s when OPEC had cut oil supply to the US, UK, Canada, the Netherlands and other countries due to its support for Israel during the 1973 Arab-Israeli conflict in which the Arab coalition forces were soundly beaten by PM Golda Meir's military.

As the "cold war" continues between the West and Russia over a whole host of issues from arms race, the alleged poisoning of a Russian agent in the UK at Salisbury, as a result, the trio of Trump, May and Macron don't want to take any chances.

According to the &nbsp;International Energy Agency(IAEA), in 2016, the share of LNG's share in the global gas market was a remarkable of 42 per cent which is expected to reach 53 per cent by 2040 even as Europe's production halves in the same period. In order to ensure energy security, the US has now entered the LNG market in a big way as it does not want to cede ground to the Russians in the "great game".

Europe is Gazprom's biggest market with record exports reached last year. Russia has been dependent on its oil and gas reserves to service its debt and power its economy since the Soviet era, the dynamic is not going to change anytime soon.&nbsp;

Asia-Pacific headed by China and India now presents the biggest natural gas market in the world. The region currently accounts for 72 per cent of global LNG demand, Putin, therefore, is making every effort to open "gas channels" in India and hopefully involve China, Pakistan's biggest ally in the region. In the future, an India-Pakistan-China gas pipeline powered by Russia cannot be discounted.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Russia has truly entered the "great game" in Afghanistan. First, the Putin regime a few days ago hosted the Taliban and former Afghan President Hamid Karzai in Moscow, just a few days after the US concluded its Doha talks with the Taliban.

Russia has truly entered the "great game" in Afghanistan. First, the Putin regime a few days ago hosted the Taliban and former Afghan President Hamid Karzai in Moscow, just a few days after the US concluded its Doha talks with the Taliban. It was an attempt by Russia to show it would not be sidelined in Afghan peace talks even decades after the Soviets left the country humiliated by the jihadists, the forerunner of the Taliban. Now, Russia has its eyes set on Pakistan. Last year it had signed an intergovernmental agreement with the Pakistan government to discuss ways in which to import liquefied natural gas (LNG) to Pakistan, one of the biggest markets of the gas in the world. Last Friday, Putin's regime signed a provisional agreement with the Imran Khan government to allow state-run gas major Gazprom to conduct a "feasibility study" to construct an offshore pipeline to supply natural gas from the Middle East into Pakistan. Both the LNG project and the latest Gazprom deal have raised eyebrows in Washington with US sanctions underway against Iran. A few days ago Iran's oil minister Bijan Namdar Zanganeh had said the country had accepted a "Russian proposal" to construct a sub-sea pipeline for exporting natural gas to India. The pipeline would link Gujarat to the Guly of Oman through the Indian Ocean. The Russia-Iran-India pipeline would reportedly carry 31.5 million cubic meters gas per day to energy-starved India. Iran's oil minister had said Russia had already reached an "understanding" meaning a MoU on the pipeline last year with preparations underway to get it ready in two years. Russia was the undisputed power as a natural gas supplier after World War-II, however, it was overtaken by tiny Qatar which became the world’s largest exporter of liquefied natural gas. In December last year, Qatar pulled out of OPEC as relations between Qatar and Saudi Arabia nosedived and the oil body turned its back on it. Qatar now seeks to increase its natural gas production, a fact not lost on the Russians. Qatar is currently the largest supplier of LNG to India and is keen to increase its market share in the country. Qatar supplies 8.5 million tonnes a year of liquefied natural gas to India which is 40 per cent of India's energy shipment. The Putin regime has increasingly played the "energy game" with markets in Europe, however, the Europeans are slowly breaking away from traditional energy sources and moving towards renewables namely solar and wind power. Germany already has a solar policy in place and hopes to exploit its wind turbines as it powers its economy on clean energy, other countries - Norway, Sweden, France hope to follow suit in order to balance climate change with economic concerns. Security concerns also weigh on Europeans and Americans, after all, Gazprom had cut gas supply to Ukraine after it failed to pay up. The West also fears a re-run of the oil crisis in the 70s when OPEC had cut oil supply to the US, UK, Canada, the Netherlands and other countries due to its support for Israel during the 1973 Arab-Israeli conflict in which the Arab coalition forces were soundly beaten by PM Golda Meir's military. As the "cold war" continues between the West and Russia over a whole host of issues from arms race, the alleged poisoning of a Russian agent in the UK at Salisbury, as a result, the trio of Trump, May and Macron don't want to take any chances. According to the International Energy Agency(IAEA), in 2016, the share of LNG's share in the global gas market was a remarkable of 42 per cent which is expected to reach 53 per cent by 2040 even as Europe's production halves in the same period. In order to ensure energy security, the US has now entered the LNG market in a big way as it does not want to cede ground to the Russians in the "great game". Europe is Gazprom's biggest market with record exports reached last year. Russia has been dependent on its oil and gas reserves to service its debt and power its economy since the Soviet era, the dynamic is not going to change anytime soon. Asia-Pacific headed by China and India now presents the biggest natural gas market in the world. The region currently accounts for 72 per cent of global LNG demand, Putin, therefore, is making every effort to open "gas channels" in India and hopefully involve China, Pakistan's biggest ally in the region. In the future, an India-Pakistan-China gas pipeline powered by Russia cannot be discounted. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Great game-II: India-Pakistan-China gas pipeline powered by Russia cannot be discounted

Pakistan has signed a provisional agreement with Russian energy giant Gazprom on a feasibility study for an offshore pipeline that would supply natural gas from the Middle East to Pakistan and other parts of South Asia.

The memorandum of understanding is the latest in a series of energy-related agreements between <a href="http://www.wionews.com/south-asia/pakistans-top-court-tells-army-to-stay-out-of-politics-media-195566">Pakistan</a> and Russia, former Cold War foes who have grown closer in recent years.

An offshore pipeline from Iran has long been discussed by Pakistani officials, but its viability has been questioned due to the delicate geopolitical situation in South Asia and the rivalry between nuclear-armed neighbours India and Pakistan.

US&nbsp;sanctions against Iran are also a major hindrance for most gas pipeline projects in the region, with the offshore spur from Iran to Pakistan and India set to cost an estimated $10 billion, according to Pakistani media.

"(The agreement) provides for a joint feasibility study regarding gas supplies from the Middle East to South Asian countries," Gazprom said in a statement on Wednesday, without specifically mentioning Iran or India.

Pakistan's Petroleum Ministry said it would take three to four years to complete the pipeline, which would include "other ancillary projects such as Under Ground Gas storage, desalination and other power projects."

Pakistan will import some 500 million to 1 billion cubic feet of gas a day from Middle East sources, the ministry said, according to the agreement Gazprom signed with Pakistan's state-run energy infrastructure arm Inter State Gas Systems (ISGS).

Islamabad previously signed an intergovernmental agreement with Russia to discuss the import of liquefied natural gas (LNG) to Pakistan, one of the world's fastest-growing LNG markets.

But a $2 billion North-South pipeline to deliver gas from Pakistan's coastal regions to industrial areas in the north has been held up since 2015 due to a disagreement over fees and US&nbsp;sanctions against Russian state conglomerate Rostec.

Pakistan has signed a provisional agreement with Russian energy giant Gazprom on a feasibility study for an offshore pipeline that would supply natural gas from the Middle East to Pakistan and other parts of South Asia.

Pakistan has signed a provisional agreement with Russian energy giant Gazprom on a feasibility study for an offshore pipeline that would supply natural gas from the Middle East to Pakistan and other parts of South Asia. The memorandum of understanding is the latest in a series of energy-related agreements between Pakistan and Russia, former Cold War foes who have grown closer in recent years. An offshore pipeline from Iran has long been discussed by Pakistani officials, but its viability has been questioned due to the delicate geopolitical situation in South Asia and the rivalry between nuclear-armed neighbours India and Pakistan. US sanctions against Iran are also a major hindrance for most gas pipeline projects in the region, with the offshore spur from Iran to Pakistan and India set to cost an estimated $10 billion, according to Pakistani media. "(The agreement) provides for a joint feasibility study regarding gas supplies from the Middle East to South Asian countries," Gazprom said in a statement on Wednesday, without specifically mentioning Iran or India. Pakistan's Petroleum Ministry said it would take three to four years to complete the pipeline, which would include "other ancillary projects such as Under Ground Gas storage, desalination and other power projects." Pakistan will import some 500 million to 1 billion cubic feet of gas a day from Middle East sources, the ministry said, according to the agreement Gazprom signed with Pakistan's state-run energy infrastructure arm Inter State Gas Systems (ISGS). Islamabad previously signed an intergovernmental agreement with Russia to discuss the import of liquefied natural gas (LNG) to Pakistan, one of the world's fastest-growing LNG markets. But a $2 billion North-South pipeline to deliver gas from Pakistan's coastal regions to industrial areas in the north has been held up since 2015 due to a disagreement over fees and US sanctions against Russian state conglomerate Rostec.

Pakistan signs offshore pipeline agreement with Russian energy giant Gazprom

New tensions between Moscow and Kiev flared Thursday after Russia&#39;s Gazprom said it will not restart gas supplies to Ukraine and Naftogaz accusing its counterpart of violating agreements.

The March shipments would have become the first Russian supplies to Ukraine since November 2015 when Kiev ceased purchasing Russian gas in favour of Europe.

Since a popular uprising ousted a Kremlin-backed regime in Ukraine in 2014, the two gas companies have been locked in a furious legal battle that led them to lodge multi-billion dollar claims against each other in the Stockholm arbitration court.&nbsp;

In December last year, the court lowered the price Russia can claim for its gas, but also required Kiev to buy 5 billion cubic metres of Russian gas annually from 2018.&nbsp;

On Thursday, Gazprom said supplies would not be restarted because an additional agreement to the current contract had not been finalised.

&quot;Obviously, no gas deliveries will be made to Naftogaz Ukraine from March 1,&quot; Gazprom deputy head Alexander Medvedev said in a statement.

He added that the Russian gas giant had returned the prepayment that Naftogaz had made for March supplies.

In response, Naftogaz accused Gazprom of violating its contractual obligations.

&quot;Gazprom&#39;s position surprises us,&quot; Naftogaz chief Andriy Kobolev said in a statement.

&quot;We are buying gas because we are implementing a court decision,&quot; he said, adding that Naftogaz intended to claim damages from the Russian company.

&quot;Gazprom&#39;s announcement gives European partners a new reason to ask if they can trust a partner who can bill you, receive money and refuse to supply gas,&quot; Kobolev said.

The new flare-up in tensions came after the Stockholm arbitration court ordered Gazprom to pay $2.56 billion to Naftogaz for &quot;failure to deliver the agreed transit gas volumes&quot;, the Ukranian company said on Wednesday.

Gazprom covers about one-third of the European continent&#39;s gas needs, a share that has increased in recent years despite the European Union&#39;s intention to reduce its dependence on Russian gas supplies.

After the 2014 popular uprising, Moscow annexed the peninsula of Crimea from Ukraine and supported an anti-Kiev insurgency in the east of the ex-Soviet country.&nbsp;

More than 10,000 people have been killed in the fighting since April 2014.

New tensions between Moscow and Kiev flared Thursday after Russia's Gazprom said it will not restart gas supplies to Ukraine and Naftogaz accusing its counterpart of violating agreements

New tensions between Moscow and Kiev flared Thursday after Russia's Gazprom said it will not restart gas supplies to Ukraine and Naftogaz accusing its counterpart of violating agreements. The March shipments would have become the first Russian supplies to Ukraine since November 2015 when Kiev ceased purchasing Russian gas in favour of Europe. Since a popular uprising ousted a Kremlin-backed regime in Ukraine in 2014, the two gas companies have been locked in a furious legal battle that led them to lodge multi-billion dollar claims against each other in the Stockholm arbitration court. In December last year, the court lowered the price Russia can claim for its gas, but also required Kiev to buy 5 billion cubic metres of Russian gas annually from 2018. On Thursday, Gazprom said supplies would not be restarted because an additional agreement to the current contract had not been finalised. "Obviously, no gas deliveries will be made to Naftogaz Ukraine from March 1," Gazprom deputy head Alexander Medvedev said in a statement. He added that the Russian gas giant had returned the prepayment that Naftogaz had made for March supplies. In response, Naftogaz accused Gazprom of violating its contractual obligations. "Gazprom's position surprises us," Naftogaz chief Andriy Kobolev said in a statement. "We are buying gas because we are implementing a court decision," he said, adding that Naftogaz intended to claim damages from the Russian company. "Gazprom's announcement gives European partners a new reason to ask if they can trust a partner who can bill you, receive money and refuse to supply gas," Kobolev said. The new flare-up in tensions came after the Stockholm arbitration court ordered Gazprom to pay $2.56 billion to Naftogaz for "failure to deliver the agreed transit gas volumes", the Ukranian company said on Wednesday. Gazprom covers about one-third of the European continent's gas needs, a share that has increased in recent years despite the European Union's intention to reduce its dependence on Russian gas supplies. After the 2014 popular uprising, Moscow annexed the peninsula of Crimea from Ukraine and supported an anti-Kiev insurgency in the east of the ex-Soviet country. More than 10,000 people have been killed in the fighting since April 2014.

Russia's Gazprom refuses to restart gas supplies to Ukraine

The European Union on Monday welcomed commitments by Russian state-owned gas giant Gazprom to allow for increased competition in east European markets, once its exclusive preserve.

The EU has been investigating Gazprom since 2015 over claims it abused its dominant position in these markets, with the dispute getting caught up in growing tensions between Brussels and Moscow over the Ukraine crisis.

EU Competition Commissioner Magrethe Vestager said Gazprom had now come forward with remedies meeting these concerns and invited competitors and customers to comment as part of the EU process of deciding whether they are acceptable.

&quot;We believe that Gazprom&#39;s commitments will enable the free flow of gas in Central and Eastern Europe at competitive prices,&quot; Vestager said in a statement.

&quot;They address our competition concerns and provide a forward looking solution in line with EU rules. In fact, they help to better integrate gas markets in the region,&quot; she said.

Gazprom is the dominant gas supplier in a number of central and eastern European countries.

When Commission launched its probe in 2015 it said it believed the company &quot;had been breaking EU antitrust rules by pursuing an overall strategy to partition central and eastern European gas markets.&quot;

The statement said the remedies offered should ensure that &quot;restrictions to re-sell gas cross-border are removed once and for all&quot; and that prices should accordingly come into line with competitive benchmarks.

Gazprom will also not be allowed to take undue advantage of infrastructure which it had &quot;obtained from customers by having leveraged its market position in gas supply,&quot; the statement said.

Under EU rules, a company found in breach of anti-competition rules is liable to a fine of up to 10 per cent of annual sales, in Gazprom&#39;s case nearly 83 billion euros in 2015.

Last week, Vestager also lifted EU objections to Russian investment in a controversial Hungarian nuclear plant project worth 12.5 billion euros.

(Reuters)

The EU has been investigating Gazprom since 2015 over claims it abused its dominant position in these markets

The European Union on Monday welcomed commitments by Russian state-owned gas giant Gazprom to allow for increased competition in east European markets, once its exclusive preserve. The EU has been investigating Gazprom since 2015 over claims it abused its dominant position in these markets, with the dispute getting caught up in growing tensions between Brussels and Moscow over the Ukraine crisis. EU Competition Commissioner Magrethe Vestager said Gazprom had now come forward with remedies meeting these concerns and invited competitors and customers to comment as part of the EU process of deciding whether they are acceptable. "We believe that Gazprom's commitments will enable the free flow of gas in Central and Eastern Europe at competitive prices," Vestager said in a statement. "They address our competition concerns and provide a forward looking solution in line with EU rules. In fact, they help to better integrate gas markets in the region," she said. Gazprom is the dominant gas supplier in a number of central and eastern European countries. When Commission launched its probe in 2015 it said it believed the company "had been breaking EU antitrust rules by pursuing an overall strategy to partition central and eastern European gas markets." The statement said the remedies offered should ensure that "restrictions to re-sell gas cross-border are removed once and for all" and that prices should accordingly come into line with competitive benchmarks. Gazprom will also not be allowed to take undue advantage of infrastructure which it had "obtained from customers by having leveraged its market position in gas supply," the statement said. Under EU rules, a company found in breach of anti-competition rules is liable to a fine of up to 10 per cent of annual sales, in Gazprom's case nearly 83 billion euros in 2015. Last week, Vestager also lifted EU objections to Russian investment in a controversial Hungarian nuclear plant project worth 12.5 billion euros. (Reuters)

EU welcomes Gazprom competition commitments

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