Page 14 - FSUOGM Week 47 2022

FSUOGM NEWS IN BRIEF FSUOGM

transit rate of flows to Hungary, Slovakia had been suspended in response to the announced the gas infrastructure
and Czechia by 15% to €13.60 per tonne, difficulties. investment plans on November 18.
explaining that the destruction caused by “The commission agreed on the
Russia’s full-scale invasion has resulted in investment plans to be implemented by
increased costs for safe working conditions Azerbaijani gas supplies via TAP the natural gas distribution companies
and protecting energy facilities. The in the next five years [...] The purpose of
company previously raised the rate in April to Europe exceed 18 bcm the agreed investment plans is to improve
to €11.50 per tonne from €8.60 per tonne. the reliability of natural gas distribution
"The continuing destruction of the The volume of Azerbaijani gas exported networks, the quality of service, to minimise
Ukrainian energy infrastructure has led to Europe via the Trans-Adriatic Gas emergency interruptions, and to ensure
to a significant shortage of electricity, an Pipeline (TAP) since December 31, 2020, continuous and safe supply of gas,” the state
increase in its costs, a shortage of fuel, spare has exceeded 18 bcm, the pipeline company body said.
parts," Ukrtransnafta wrote to its Russian TAP AG said in a report. Tbilisi Energy will invest GEL35,535,479
counterpart Transneft in a letter. "Since the start of commercial ($13,066,104) in upgrading the Tbilisi
Moreover, Russian missiles and drone operations, TAP has safely transported natural gas distribution network and
strikes have damaged the pipeline, which more than 18 bcm of gas to Greece, Bulgaria improving the quality of its service.
Ukrtransnafta has been forced to fix. and Italy," the company said in a tweet. Socar Georgia Gas will invest
An attack on November 15 also forced "TAP's capacity could be doubled in stages GEL111,860,279 ($41,130,107) in
Ukrtransnafta to stop pumping oil to to further contribute to Europe's energy improving supply in other regions, while
Hungary and Slovakia after a power security," TAP AG added. Sakorggazi will contribute GEL113,308,497
distribution facility was hit. Nevertheless, In December 31, 2020, deliveries to ($41,662,605) and Telavgazi - GEL3,723,052
the company managed to restore gas flow in Europe – Italy, Greece and Bulgaria – ($1,368,935).
under 24 hours, Upstream reported. through TAP began for the first time, the Varketilairi will invest GEL1,039,261
The new fees will be introduced on volume of which in 2021 amounted to 8.2 ($382,127) in replacing out-of-service
January 1, 2023. Transneft is reportedly bcm. In 2022, the volume of exports was metres, updating the network and
reviewing the letter and a company projected at a level of 22-23 bcm, including improving service quality.
spokesperson said that the operators will 11.5 bcm to Europe. Energokavshiri will invest GEL521,000
“hold consultations” to decide whether Azerbaijan exported a total of 19 bcm of ($191,567) in implementing projects related
Transneft will agree to the new prices. gas in 2021. to the improvement of service quality.
Although the contract between
Transneft and Ukrtransnafta expires in
2030, there is a risk that Russia will halt Boost for Kazakh crude exports New Ankara demand for tanker
oil transit deliveries early, for political
reasons. Already Transneft suspended as CPC starts loading oil tankers insurance could hinder Russian
oil shipments to Europe via the Druzhba
pipeline, claiming that Ukrtransnafta had at SPM-1 mooring point oil exports via Turkish straits
been unable to receive transit fees due to
Western sanctions. Deliveries resumed after Caspian Pipeline Consortium (CPC) on Turkey is to from December 1 demand
Hungary’s MOL and Slovakia’s Slovnaft paid November 19 started loading an oil tanker proof of insurance coverage from oil
on behalf of Ukrtransnafta a week later. from single mooring point-1 (SPM-1) at its shippers sending tankers through its vital
Russian Black Sea terminal after completing straits connecting the Black Sea and the
repair work, the company said. Kazakhstan Mediterranean.
Uzbekistan's 10M22 gas exports most of its crude from the terminal of Russian oil as new European sanctions
The move could potentially restrict flows
in Novorossiysk.
supplies to China earn $900mn completed repairs at one of the two offshore take effect, but would enable Turkey to
The CPC stated last week that it had
comply with the sanctions, while also
Uzbekistan in 10M22 piped gas to China loading buoys that have been subject to helping to protect its maritime waters.
worth $916.7mn, up 52.5% y/y, TASS has maintenance at the port. The European Union and UK are from
reported, citing China’s Main Customs The progress frees up space for two out December 5 to apply additional curbs on
Administration. of three mooring points to load Kazakh oil. Russian trade that will make it much more
Uzbekistan is the fifth ranked gas Oil exports from Kazakhstan at the port difficult for tankers carrying Russian oil to
supplier to China, slightly behind are expected to be restored to run at full get insurance.
neighbouring Kazakhstan. The latter sold capacity since slowing due to the repairs The insurance in question applies to a
gas valued at $996mn to China in the given that started in August. range of dangers including oil spills and
period. collisions.
Turkmenistan was the largest supplier In the past six months, Russia shipped
of gas to China ($8.23bn, up 53% y/y), Gas companies to invest $97mn nearly 650,000 barrels a day of its own oil
followed by Russia and Myanmar ($3.1bn, through the Bosporus strait from its Black
and $1.13bn, respectively). in improving transmission Sea port of Novorossiysk over the past six
On November 16, Uzbekistan’s Energy months, loading programs compiled by
Ministry addressed the country's dilemma network in Georgia Bloomberg show. Almost 1.3mn barrels a
with interruptions in domestic supplies day of cargo from Kazakhstan were also
of gas and electricity. It noted that power Natural gas companies in Georgia will shipped from the port in the period.
outages were caused by a lack of gas at invest GEL265mn ($97.44mn) over the next Under the EU and UK sanctions, tankers
power plants. Uzbekistan receives 90% of its five years to improve supply throughout the will still be able to get industry standard
electricity from thermal power plants, most country, Agenda.ge reports. insurance cover—but their cargoes must
of which run on natural gas. The Georgian National Energy and be subject to purchases below a yet-to-be-
The ministry said that gas exports Water Supply Regulatory Commission determined price cap. ™

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