Introduction

Recent reports suggest Russian gas monopoly Gazprom is engaged in talks with RWE to bring the German utility into the South Stream gas pipeline consortium. This comes hot on the heels of a series of inter-governmental agreements between Russia and potential transit states to build support for South Stream. What are the chances of RWE signing up to South Stream and what would this mean for Nabucco?

Scope of this research

• A detailed analysis of Nabucco and South Stream: why they are competing, what are their strengths & weaknesses and which is winning
• An overview of the current European gas market and how new trends in regulation and technology are shaping the pipeline race
• A discussion of how Nabucco consortium member RWE will likely react to overtures from Russian energy Giant Gazprom to join rival South Stream project

Research and analysis highlights

The effects of the recession and of diluted environmental commitments have reduced projected European gas demand. At the same time, advances in unconventional gas extraction and investment in new assets have increased gas supply: competition is now zero sum.

Key reasons to purchase this research

• Understand the nuances and key drivers in the competition between Nabucco and South Stream to supply gas to Europe
• Analyse the strengths and weaknesses of each project and draw your own conclusions on how events are likely to pan out
• Develop your own investment strategy in preparation for the new European energy security landscape as it emerges