Page 8 - FSUOGM Week 44 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom to finish Russian gas

stockpiling on November 8

RUSSIA RUSSIA’S Gazprom expects to finish stockpil- The Russian president said this would
ing gas at its Russian storage sites on November improve conditions on the European energy
After enough gas 8, CEO Alexei Miller said on October 27, after market, where gas and power prices have sky-
has been stockpiled which it will shift its focus to filling its sites else- rocketed over recent months as a result of robust
domestically, Gazprom where in Europe. demand and supply constraints. He blamed the
will turn its attention to Miller was discussing the situation on the situation in Europe on cuts to indigenous gas
Europe. gas market in a meeting with Russian President production there, as well as lower LNG imports,
Vladimir Putin. The two men noted that Euro- especially from the US.
pean gas storage utilisation was at an unusually Putin insisted again that Gazprom was abid-
low level for this time of year, and that Gazprom’s ing by its long-term supply contracts, hitting
own storage sites on the continent contain only back against accusations that the company is
190,000 cubic metres of gas. exacerbating the energy crisis by keeping back
However, Gazprom’s first priority is build- some supply.
ing up its domestic reserves. The company aims Expectations are that European gas prices
to have 72.6bn cubic metres of gas in place by will remain high into early next year, especially
November 8, Miller said. if the coming winter proves to be a cold one.
“As soon as we finish pumping [gas] into While global LNG supply is on the rise, the
the UGS in Russia, we will start pumping our commodity continues to trade at a premium in
Gazprom’s gas into European UGS,” Miller told Asia, driving supplies away from the European
Putin. market. ™

Nord Stream 2 poses no threat to

European energy security: Germany

EUROPE GERMANY’S government has determined that Nord Stream 2, arguing that Russia will seek to
the Nord Stream 2 poses no threat to European use the pipeline as a geopolitical tool. It did not
This clears a key energy security, clearing a key obstacle to the mention Ukraine, although that country’s gas
obstacle to the pipeline’s commercial launch. supplier Naftogaz has applied to have its say as
pipeline's certification. Whether or not the pipeline is considered an part of the certification process.
energy security risk will be a key consideration Earlier in October, Polish state-owned gas
as German energy regulator Bundesnetzagentur company PGNiG said that the current energy
decides whether or not to certify Nord Stream 2’s crisis in Europe “proves the risks for security of
operator as an independent transmission system supplies created by the Nord Stream 2 project.”
operator (TSO). Certification is needed for the Gazprom announced in September that Nord
pipeline to commercially flow gas. Stream 2 was finished and it is now ready to flow
“In its analysis the Federal Economy Minis- gas.
try concludes that granting certification is not Even if German regulators certify the Nord
threatening security of gas supply to the Fed- Stream 2 operator, their decision will be passed
eral Republic of Germany and the European to the European Commission for review. This
Union,” the ministry said in a statement on will cause further delays, and the Commission
October 26. may disagree that the pipeline poses energy
The ministry added it had given other EU security risks. The Commission has firmly
countries including Italy, Austria, Poland, Czech bought into the narrative that the current gas
Republic, Hungary, Estonia, Latvia and Lithua- shortage in Europe is due in part to the actions of
nia the opportunity to consult. Poland and the Russia, suggesting they may take a stance against
Baltic states have expressed strong opposition to the pipeline. ™

P8 www. NEWSBASE .com Week 44 03•November•2021