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Gazprom Hikes Output Outlook Amid Tensions In Syria

Tom Luongo profile picture
Tom Luongo


  • Gazprom delivered 12% more gas YoY to Europe and Turkey than in 2016.
  • FY deliveries are up 7%.
  • Syria remains a political risk with Turkey the key player.
  • Gazprom is sincerely undervalued for U.S. investors.

Gazprom (OTCPK:OGZPY) is a fascinating company to cover, not only because I feel it is one of the most sincerely undervalued assets available to investors in today’s market but because its business intersects with so many of the major geopolitical events around the world, most notably the rising tensions in Syria.

This week Gazprom reported its sales to Europe and Turkey in the first half of 2017 exceeded its expectations by 12%. And the firm raised its full year guidance for gas deliveries to a 7% year-over-year gain.

These numbers happen against a backdrop of minor changes in the European gas market, like Poland and Lithuania contracting for its first shipments of liquefied natural gas from Cheniere (CQP) in open defiance of the Russian state gas company’s plans to increase market share through the controversial Nordstream 2 pipeline expansion.

Syria-ous Ground

The escalation of tensions between U.S./Israeli forces and the pro-Assad coalition in Syria these past two weeks come while Turkey and Russia announced construction of the Turkish Stream pipeline is officially underway in the Black Sea.

Gazprom never stopped building its side of the above-ground portion of the pipeline, even when it was South Stream. Remember, Turkish Stream is simply a re-routing of the defunct South Stream pipeline that Bulgaria nixed amid intense political pressure from the EU and the U.S.

And Turkey is emerging as a very pivotal player in the next stage of the Syrian conflict. Its massing of troops and attacking PKK Kurdish forces near Afrin this week put pressure on the Syrian Defense Force/U.S. relationship as Kurdish fighters have slowed their attacks on the ISIS stronghold of Raqqa to possibly support their brethren against Turkey to the north.

This is not how a NATO ally is supposed to act but President Recep Tayyip Erdogan is

This article was written by

Tom Luongo profile picture
I am a former research chemist by trade and an Austrian Economist by study and a market analyst by choice. For the past four years I have been a Senior Financial Editor with Newsmax Media publishing my thoughts on where markets, central banks, gold and geopolitics meet and explode.  I am now the publisher of Gold, Goats n' Guns, a monthly newsletter offered through Patreon.  I have been an investor and market analyst for more seventeen years and am an astute observer in changes within the culture and the political landscape. Feel free to find me on: My personal blog, Giold Goats 'n Guns: www.tomluongo.meYou Tube: https://www.youtube.com/channel/UC54PyZuVrDrhbWc6UqNjEBALinkedin: http://www.linkedin.com/pub/tom-luongo/5/384/a59/ Twitter: @TFL1728 Patreon: www.patreon.com/goldgoatsngunsPeriscope: @tomluongo (Mondays at 8pm and Fridays @ 9pm EST)

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