Energy Blast – March 4th, 2009

If the price of oil continues to fall, Russia may re-impose capital controls (abandoned in 2006), a move that, one analyst suggested, would see investors reacting ‘hysterically’.  The energy deal signed by Russia and Spain yesterday will give Spanish companies greater access to Russian fields and could smooth the path for Russian firms to buy stakes in Spanish companies.  Gazprom’s third-quarter profit growth is overshadowed for investors, says the Moscow Times, by sagging demand and a potential cut of capital expenditures.  State nuclear corporation Rosatom and Germany’s Siemens have signed a memorandum of understanding outlining the creation of a joint venture for nuclear energy.  As part of its plan to diversify supply routes, Poland’s PGNiG says it intends to build a pipeline through Slovakia to connect to Austrian gas hub in Baumgarten.  Chevron Corp’s Gorgon liquefied natural gas venture, to be built off the coast of Western Australia, is expected to cost as much as $32.03 billion.