Page 15 - EurOil Week 28 2022

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The government will apply for an extension Russia to export LPG to Estonia‘s Eesti Gaas buys
of the lifespan of the existing blocks at the
Paks nuclear power plant. Bulgaria via Georgia €300mn worth of Norwegian
The largest opposition party DK said
the abolishment of the blanket price cap is Russia is to start exporting liquefied LNG for coming winter
an acknowledgment of the government’s petroleum gas (LPG) to Bulgaria via Georgia’s
failed policies. In the election campaign, the Black Sea port of Poti in July, Reuters reported Estonia‘s Eesti Gaas, the state-run gas
government accused the united opposition on July 13, quoting traders and Refinitiv company, signed an agreement to buy
of planning to unwind the utility price Eikon statistics. 2 terawatt-hours (TWh) of liquefied
scheme. Bulgaria consumes between 30,000 natural gas to secure Estonia’s supply
Just more than two months after the and 35,000 tonnes of LPG per month, but for the upcoming winter. The deal cost
election, the government admitted that produces only 10,000 tonnes of LPG and approximately €300mn, ERR.ee, the website
it had lied throughout the campaign and imports the rest from Romania and Russia. of Estonian public broadcaster ERR,
gave up on his most important political However, currently Russia cannot export via reported on July 12.
“product”, MP Akos Hadhazy wrote... its usual routes to Bulgaria due to its war of The company made the agreement with
aggression in Ukraine. Also since the Ukraine Norway’s energy group Equinor and gas will
conflict began, Finland has cut purchases of arrive at Lithuania’s Klaipeda LNG terminal
Serbia and Ukraine to deepen Russian LPG sharply. In 2021 Russia exported in October and November.
The contact means “greater peace of
25% of its LPG to Ukraine and Finland.
co-operation in energy sector when it began its invasion there, It has also mind” for the market and security for
Moscow stopped LPG supplies to Ukraine
customers, Margus Kaasik, chairman of the
Serbian Deputy Prime Minister and stopped rail transit to Romania, Hungary and Board of Eesti Gaas said.
Minister of Energy Zorana Mihajlovic met Moldova via Ukraine, forcing traders to look Eesti Gaas will continue to buy more
the new ambassador of Ukraine to Serbia, for alternative routes. LNG, he added.
Volodymyr Tolkach, on July 13, with whom “LPG supplies via Poti are being considered “Natural gas was, is, and will remain
she discussed co-operation in the energy due to limited sales opportunities through one of the most convenient and clean
sector. other main export routes,” an industry source fuels. The price of gas will likely be high in
Details on the co-operation were not told Reuters. the upcoming winter, but looking a little
provided. Russia is a traditional ally of In July, around 3,000 tonnes of LPG from further ahead, the transition to LNG and
Serbia, but despite the war in Ukraine, Surgut will be transported by rail to Georgia’s the establishment of new supply chains will
Belgrade is maintaining good relations with Poti, and then via sea ferry to Bulgaria’s Varna, eventually bring calm to the market with
Kyiv as well. according to Refinitiv Eikon rail data quoted lower and more stable prices,” said Kaasik.
During the meeting, Mihajlovic assessed by the news agency. Eesti Gaas has acquired three large LNG-
that Serbia and Ukraine have traditionally LPG rail shipments from Surgut via based gas supplies from the Polish state
good and friendly relations based on Georgia’s Poti to Bulgaria are about 50% company PGNiG in recent months.
mutual respect for territorial integrity higher than supplies to the EU via Ukraine. At the beginning of May and early June,
and sovereignty. She added that Serbia is Meanwhile, Bulgaria’s energy and water gas tankers arrived in Klaipeda with LNG
providing help to refugees from Ukraine regulation commission, KEVR, said that from the United States and at the end
affected by the war. natural gas for July will cost around 32% of June from Norway, which will ensure
Mihajlovic said that the energy situation more, setting the price at BGN186.47 (€95.3) customers’ gas supply until autumn.
is not simple anywhere in Europe, and per MWh. The new contract with Equinor will cover
Serbia is trying to provide enough KEVR also said that in July Bulgargaz will gas consumption throughout the heating
energy for its market, while being open rely on six suppliers of gas in July, including season.
to improving energy co-operation with of liquefied natural gas (LNG). As of July
Ukraine, according to the statement. 1, Bulgaria started receiving the full agreed
During the meeting, Mihajlovic and amount of natural gas from Azerbaijan, which Poland tables plans for gas
the Ukrainian ambassador discussed the is 1bn cubic metres per year. Previously, the
possibilities of co-operation in overcoming country was receiving just one third of that supply emergency
difficulties with the procurement of amount.
electricity for the upcoming winter, gas Bulgargaz has also signed agreements for Poland will extend until the end of 2027 a
supply, as well as the exchange of experience supplies with traders from the region, KEVR special gas tariff system for households and
and knowledge in the development of new noted but gave no further details. so-called vulnerable users such as schools or
technologies. Gazprom stopped supplying natural gas to hospitals to shield them from the growing
Reuters reported a day earlier, citing Bulgaria and Poland at the end of April, after prices of gas, the government announced on
Mihajlovic as saying, that Serbia, which is the countries refused to pay in rubles. July 12.
fully dependent on Russian gas, plans to Bulgaria has tried to replace lost Russian The decision, which will require
purchase gas from Azerbaijan in 2023, when gas supplies with US LPG. In May, the amendments to existing regulations and
it expects an interconnector to Bulgaria’s country’s Deputy Minister of Economy, therefore go through the parliament, comes
pipeline to be completed. Georgi Danailov, said: “The general agreement as Poland is bracing for the impact of a
“We are currently talking to Azerbaijan between US President Joe Biden and likely gas crisis after Russia shut down Nord
to book gas capacities for the next year [European Commission President] Ursula Stream 1, its main European gas supply
because the Serbia-Bulgaria interconnector von der Leyen is to begin regular supplies of route.
will be completed next year in September,” liquefied gas from the US.”
Mihajlovic was cited as saying at an energy
conference in Sarajevo.

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