Page 12 - FSUOGM Week 14 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom no longer owner of

German subsidiary

RUSSIA RUSSIA’S Gazprom is no longer the owner of its company over Russia’s war in Ukraine. In Ger-
German trading arm Gazprom Germania as well many, the government is planning to nationalise
A number of Gazprom's as its London-based subsidiary Gazprom Mar- or possibly even expropriate Gazprom Germa-
European subsidiaries keting & Trading, the company announced in its nia, business newspaper Handelsblatt reported
have come under Telegram channel on April 1. on March 31.
financial strain. The company confirmed it had “termi- Apart from Gazprom Market & Trading and
nated its participation” in the assets in a brief Wingas, Gazprom Germania’s other properties
statement, without providing an explanation include Gazprom NGV Europe, which sup-
for the move or saying who the new owner plies gas as a road transport fuel, Prague-based
was. Based in Berlin, Gazprom Germania lists VEMEX, Kassel-based WIEH and Astoria, and
its main business areas as storage, trading and Zurich-based Gazprom Schweiz. Gazprom Mar-
the supply of gas as a fuel for road transport keting & Trading subsidiaries include GM&T
and shipping. Its key subsidiaries are Wingas, Mexico, GM&T Switzerland, GM&T France,
which supplies around 20% of German gas GM&T USA, Gazprom Global LNG, GM&T
demand, and Gazprom Market & Trading, Retail and GM&T Singapore.
which has a number of divisions in various Besides Gazprom Germania and Gazprom
countries, with its main operation being gas Marketing & Trading, Gazprom did not mention
supply in the UK. any other of these divisions by name.
A number of Gazprom’s European subsidi- The offices of Gazprom Germania and Win-
aries have come under financial strain, as cus- gas were raided by European anti-trust regula-
tomers and partners have shunned them and tors on March 29, according to Bloomberg, over
sanctions have created difficulties with transac- allegations that Gazprom has abused its dom-
tions. Gazprom Marketing & Trading reportedly inant position on the market. The European
narrowly avoided insolvency in late March, and Commission confirmed that the “unannounced
could be placed into administration, as numer- inspections” took place but did not mention the
ous UK businesses seek to cut ties with the companies involved. ™

Latvian PM says coalition supplies of Russian natural gas. It is planned company Lukoil in the fall of 2021 agreed
with Petronas to purchase its 15.5% stake in
that the scenarios developed by the MoE
united on no more Russian will be submitted to the coalition for Azerbaijan's largest gas field, Shah Deniz,
evaluation next week.
for $2.25bn. However, after Petronas's
gas Estonia or Lithuania in April, with the announcement, SOCAR acquired 4.35%,
No gas from Russia has flowed to Latvia,
and BP 1.16%, so Lukoil bought only 9.99%
There is a consensus among the ruling Russian supplier Gazprom demanding to be for about $1.45bn.
coalition that Latvia should give up supplies paid in rubles. The deal was closed in January 2022.
of Russian natural gas as soon as possible, As reported by bne IntelliNews, As a result of the deal, Lukoil increased its
LSM's Latvian-language service reported on Lithuania has already made a decision to stake in the project from 10% to 19.99%.
April 4. completely abandon Russian gas supplies, Other project participants are: BP plc
Speaking after the regular coalition and while Latvian politicians have expressed (29.99%, operator), TPAO 19%, SOCAR
meeting on April 4 ahead of a cabinet similar sentiments, gas trader Latvijas 14.35%, NICO 10% and SGC ("subsidiary"
meeting on April 5, Prime Minister Gaze – which is half owned by Russian of SOCAR) 6.67%.
Krisjanis Karins said that Latvia will give up energy companies including Gazprom – has The Shah Deniz gas condensate field
the supply of Russian natural gas regardless muddied the waters by announcing that it is located in the Azerbaijani sector of the
of what other countries and the European sees no reason why it cannot pay for gas in Caspian Sea, 70km southeast of Baku. The
Union (EU) decide on the matter. rubles. project is being implemented under the
Following Russian atrocities in Ukraine, PSA; commercial production began in 2006.
pressure is building for a full European In 2021, production under the project (in a
Union embargo on Russian gas supplies, Petronas closes its 100% share) amounted to 22.7 bcm of gas
though some countries remain reluctant and 4.2mn tonnes of oil and gas condensate.
to impact their economies for the sake of a subsidiary in Azerbaijan Since 2018, the second phase of the
principled stand. project has been implemented with an
The Ministry of Economics (MoE) Petronas Azerbaijan (Shah Deniz) SARL expected increase in gas production to 26
responsible for the energy sector has announced the liquidation of its branch in bcm, oil and gas condensate up to 5mn
been instructed to draw up a report with Azerbaijan on 5 April. tonnes. The produced gas is sold in the
solutions on how Latvia could refuse As previously reported, the Russian oil markets of Azerbaijan, Georgia and Turkey,

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