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A TOP states that the deliveries have to be taken within a certain period, or if not paid for. Saying you will pay but want a credit for future over deliveries would normally require an additional investment in capcity to make those over deiveries available.

One of the whole points baout TOP is that gives a degree of certainty that allows the optimal sizing of investment, which results in a lower price to the purchasing party.

by senilebiker on Mon Oct 26th, 2009 at 09:12:24 AM EST
[ Parent ]
it would work, because Russia has both the pipelines and the production capacity. Russia nexports have always been limited by Western Europe voluntarily constraining its exports from Russia and not by infrastructure constraints. Remember that the Soviet Union used to deliver 120bcm/y of gas to Ukraine, and now it delivers only 50-60bcm/y - and more pipes to the West have been built since.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Oct 26th, 2009 at 09:37:48 AM EST
[ Parent ]
you lose all the leverage power.

If Russia want s to futher develop its Irkutz fields it will need to build a additional piping and compression capacity. If they give ground now, then the buyers will sign a contract with a shrug of their shoulders and "who cares?"

by senilebiker on Mon Oct 26th, 2009 at 09:42:54 AM EST
[ Parent ]
Russia is certainly not giving up on TOP - indeed, I suspect this story came up (before the end of the year when shortfalls will actually be measured) because Gazprom IS making noise, and using current numbers to underline the potential for a "lack of reliability" accusation towards its customers...

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Oct 26th, 2009 at 10:19:09 AM EST
[ Parent ]

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