Monday, 1 July 2019

Expensive and Humiliating. Poland Bought Gas in the USA (Ruslan Ostashko)



June 30, 2019
An extra billion cubic meters of absolutely unnecessary, and highly costing gas, the president of the US has managed to sell it to Polish nationalists. The full beauty of this “Ukrainian victory” can be understood only if you remember the history of the issue.
Andrzej Duda’s visit to Washington was marked not only by loud statements that (showed the depth of the historical illiteracy of the Polish President. http://thesaker.is/the-poles-are-braver-than-the-russians-the-president-of-poland/)
Another highlight of the visit was another deal imposed on Duda in the energy sector.
“Our countries have signed an additional contract for the supply of two billion cubic meters of gas,” the head of the White House said on June 12, noting that the total amount of the contract is about eight billion dollars. The website of the Polish gas operator PGNiG clarifies that the volume of LNG supplied to the country from the US terminal Plaquemines will be increasing starting with 2023 from 1.35 to 3.38 billion cubic meters (after regasification).”
It has been almost 2 years since one of the best Russian analysts, my friend and colleague Ivan Danilov wrote a material titled “Trump is a vacuum cleaners salesman.” Let me remind you what Ivan wrote in July 2017.
“It would seem that selling liquefied American gas to Poland, which is much more expensive than gas supplied by Gazprom, is a difficult task. More precisely, it is possible to force politicians to make such a decision, but how to make even ordinary voters understand the overpayment, which, according to various estimates, will be from 50% to 150% compared to the price of Russian gas? The American President took one of the most effective trumps from the deck of marked cards of experienced merchants, offering the Poles a bonus in the form of “independence from Russian supplies.” In fact, the American leader said that not just gas is supplied to Poland, but the right American gas “with a taste of independence from Russia”, and, of course, it is implied that such gas should be very expensive, and its consumption is a sign of national success, prestige and belonging to an elite Western club.”
The devil hides in two things. First, taking into account the LNG purchases in the US and the connection to the Baltic Pipe gas pipeline, Warsaw, starting from 2022, intends to purchase more than 14 and a half billion cubic meters of gas per year. Obviously, it doesn’t need that much. And, secondly, this American gas purchased by the Poles “with a taste of independence from Russia” can not be cheaper than 6-7 dollars per million British thermal units, BTU.
(BTU is an Anglo-Saxon unit of energy, just over a kilojoule. https://www.convertworld.com/ru/energiya/britanskiye-termicheskiye-yedinitsy.html)
So, Russian gas is already at the level of $5 per million of British thermal units. That is, the Poles intend to pay more to the extent of $1 to $2 per million BTU. While the Americans themselves are trying to buy cheaper energy.
The question comes: are people ruling in Warsaw so stupid that they do not understand that they have signed up to buy very expensive gas in quantities that their own country doesn’t need at all?
Turns out Poland plans to resell expensive American gas to other Eastern Europeans. They plan to act as an intermediary and not only to pay for their purchases of expensive energy with other people’s money, but also to get a profit.
“Previously, it was called the concept of ‘three Seas’ or ‘inter-Seas’, and a few years ago put forward the ‘Initiative of the three seas’ (Baltic — Adriatic — Black Sea, BABS). The impetus was the coming to power in the US Donald Trump, who promised ‘to save’ Europe from Russian gas with the help of American LNG. Donald Trump said that this project will provide BABS participants with ‘prosperity and security.’ And then he offered the Europeans to build terminals for American LNG — in the Lithuanian Klaipeda, Polish Swinoujscie and on the Croatian island of Krk in the Adriatic sea. It was assumed that from these terminals the network of gas pipelines would extend to the Czech Republic, Hungary, Slovakia, Slovenia, Bulgaria, Romania, Estonia and Lithuania, forming a barrier to gas from Russia to the Western Europe.”
That is, three members of the EU – Poland, Lithuania and Croatia – imagined themselves the most intelligent, deciding to lick Uncle Sam’s shoes, and at the same time to cash in at the expense of their neighbors. For anyone with a head on their shoulders, the outcome was predictable from the start. But, as shown by the behavior of American satellites, they could not wait to take place of the “heroes” of a known saying: “a Ukrainian is stupider than a crow, but more cunning than the devil.”
As a result, the stupid crows all took a part in the operation BABS – Lithuania got into debt by renting a LNG terminal in Klaipeda, which it will never pay off. Poland is rowing expensive and unnecessary American gas, despite the fact that it does not even have money for, say, the modernization of its entirely coal-fired power plants for another type of fuel. And Croats decided to be the coolest of them all.
“In January 2019, Croatian Energy Minister Tomislav Ćorić, announced that a construction of a re-gasification complex on the island of Krk ‘will be carried out regardless of the lack of interest from natural gas buyers.’ In early February, the final investment decision was made on the project.”
That is, the example of Lithuanians taught them nothing. They are so stupid that they will build a LNG terminal at a loss.
Why didn’t the BABS project take off? Because Russia has built the Turkish stream. And why Putin was able to agree with Erdogan on the construction of this gas pipeline to supply energy to the Southern and South-Eastern Europe? Because the American “geniuses of geopolitics” tried to overthrow and kill Erdogan by organizing a coup, and Moscow saved him.
Now Russian Prime Minister Medvedev offers Slovaks the natural gas bypassing “Tse-Europe” (Russian social media nickname for Ukraine from the Ukrainian nationalists’ saying ‘Ukraine is the Europe’ which is not true neither geographically, nor historically, demographically or culturally. – S.H.). As for Poland and Croatia, none of the sane buyers thinks about buying natural gas from the US.
Once again, the post-Soviet nationalists will pay in full for the “decommunization” they started and rise in Russophobia. As they are already paying in other energy issues.
I send my warm regards to all who hoped for the collapse of Gazprom, the rupture into shreds of Russian economy and the realization of other collective wet dreams of post-Soviet westophiles.
A thrifty pays twice the price, an idiot – three times, and a Russophobe always overpays.

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