Page 13 - EurOil Week 50 2020

EurOil PIPELINES & TRANSPORT EurOil

Work on Nord Stream 2 resumes

RUSSIA CONSTRUCTION of Russia’s embattled Nord said they anticipate the pipeline being up and
Stream 2 gas pipeline has resumed, the project’s running by early 2021.
News that pipelaying operator said on December 11, after coming to The original goal of Nord Stream 2 was to
had resumed sent a halt around a year ago after the US imposed allow Gazprom bypass Ukraine as a transit route
Gazprom's stock up sanctions. for its European gas deliveries. But after the
3.5% in Moscow. The pipeline under the Baltic Sea from project fell behind schedule last year, Gazprom
Germany to Russia is understood is be around was forced to strike a new five-year transit deal
94% complete. Germany’s Authority of Water- with Ukraine in December 2019. This means the
ways and Shipping Management published a company will not get full benefit from the pipe-
notice to seafarers on December 11 that build- line until 2025.
ing work in German waters had resumed. News that pipelaying had resumed sent
It warned other ships to avoid the area until Gazprom’s stock up 3.5% on the Moscow stock
“around December 31”, noting that “anchoring exchange. Besides Gazprom, the pipeline is also
or fishing is not permitted in the area of the backed financially by Germany’s Wintershall
planned pipelines.” Dea and Uniper, Royal Dutch Shell, France’s
The Nord Stream 2 operating company, a Engie and Austria’s OMV.
100%-owned subsidiary of Russian state gas Fortuna is one of several Russian-owned ves-
supplier Gazprom, confirmed in a statement sels that were expected to play a role in complet-
that “the pipelay vessel Fortuna will lay a 2.6-km ing the pipeline. Gazprom has been unable to use
section of the pipeline in the German Exclusive foreign pipelaying vessels owing to sanctions.
Economic Zone in water depths of less than 30 Despite US pressure, Germany has maintained
metres.” its support for Nord Stream 2, even following the
Nord Stream 2 will pump up to 55bn cubic political fallout from the poisoning of Russian
metres per year of Siberian gas to Gazprom’s opposition figure Alexei Navalny earlier this
European customers. Russian authorities have year. ™

Belarus suspends oil product

shipments via Klaipeda

BELARUS BELARUS is “temporarily suspending” oil has considered switching products shipments
product shipments via the Lithuanian port of to ports in Russia, which has stood behind the
Lithuania has been Klaipeda, oil terminal operator Klaipedos Nafta Lukashenko regime in the face of mass protests
a staunch supporter (KN) said on December 15, attributing the deci- on Belarusian streets since the summer. In Sep-
of the Belarusian sion to political factors. tember, Belarus and Russia announced they
opposition. Belarusian President Alexander would look to channel Belarusian oil products
Lukashenko warned in August he would divert through Baltic ports.
exports that currently transit Lithuania, which Oil product exports are a major source of
has backed opposition claims that the strong- revenue for the Belarusian state. Belarus’ two
man ruler fixed Belarus’ August 9 presidential refineries in Mozyr and Novopolotsk receive
election. discounted oil supplies via pipeline from Russia
“We understand our client’s decisions are for processing, allowing them to generate lucra-
likely motivated by political, not economic, logic, tive margins.
which we cannot influence,” KN’s commercial Belarus had a contract to receive 24mn
director Mindaugas Navikas said in a statement. tonnes (480,000 barrels per day) of Russian oil
From an economic view, the terminal is “the this year. But shipments were halted at the start
most attractive for export ... of Belarusian oil of the year because of a disagreement between
products,” he said. Minsk and Moscow over prices. The pair were
Belarus’ state-owned products exporter BNK also in a standoff over potential closer economic
ships supplies to KN under a contract that runs and political integration. Belarus notably used
until the end of next year. the Klaipeda terminal to import replacement oil
Lithuania has been a staunch ally of Bela- supplies, including from the US.
rus’ opposition movement. It has hosted exiled Issues with Russian shipments were quickly
leaders and was among the first countries to slap resolved after Minsk reached out to Moscow for
sanctions on Lukashenko. In retaliation, Belarus support amid its mass civil unrest. ™

Week 50 17•December•2020 www. NEWSBASE .com P13