Page 18 - EurOil Week 35 2022

EurOil NEWS IN BRIEF EurOil

Bulgargaz seeks natural gas Raudla went on. Emirates (UAE), President Rumen Radev
said during his visit to the country.
Gas and electricity supplier Elering says
price hike to €161.4 per MWh the ship-to-shore pipeline will be finished Minister Gulub Donev is trying to secure
The caretaker government of Prime
by November 30, while Estonian investors
for September say that the overall facility at Paldiski will natural gas for the winter months, after
turning down the purchase of six tankers
be ready earlier than its equivalent on the
Bulgaria’s state-owned natural gas supplier other side of the Gulf of Finland, at Inkoo. of liquified natural gas (LNG) from the US,
Bulgargaz has asked for increase of the A spokesperson for Finnish natural claiming it was unable to find unloading
wholesale price for September to BGN315.61 gas supplier Gasgrid told AK that both slots for them.
(€161.4) per MWh, the energy and water terminals will be ready by December, Caretaker Energy Minister Rossen
regulator, KEVR, said in a statement. providing a choice, meaning Paldiski may Hristov said, as quoted by Dnevnik news
However, the company’s newly-appointed remain a back-up terminal for now. outlet, that the country is expecting
director Denitsa Zlateva said the price could Estonian firms who can take advantage offers from the UAE and Azerbaijan. The
go even beyond that sum. of the Paldiski facility include Alexela and government is also attempting to start
The reason for the expected price hike is Eesti Gaas, who are due August 31 to hand negotiations with Russian Gazprom, which
that the fuel cost at European gas hubs has over to Elering on August 31, ERR.ee, an stopped supplies at the end of April, after
increased by 17%, Zlateva said as quoted in Estonian news website, reported on August the former government of Kiril Petkov has
KEVR’s statement. 31. refused to start paying in roubles.
The price increase for end-suppliers Meanwhile, Petkov’s Change Continues
that are directly connected to Bulgargaz’s is seeking a restart of exploration for shale
transmission network would be smaller than Estonia’s gas utility once gas in the Black Sea. The Bulgarian Socialist
that as the company has secured favourable Party (BSP) supports this idea.
terms for September deliveries. Moreover, again steeply hikes price for
Bulgargaz has held auctions on the Balkan
Gas Hub, securing 11,300MWH per day in household consumers Latvian government prioritises
the first auction, which comprises all the
needed additional quantity for that month. The price of the home package, which LNG terminal project
Meanwhile, the caretaker government of rose in September to €2.65 per 1m3, will
Prime Minister Gulub Donev has pledged that further rise to €4.10 per cubic meter in On August 30, the Latvian cabinet agreed to
the Greece-Bulgaria gas interconnector would October, Margus Kaasik, the chair of grant the status of a national interest object
become fully operational on October 1. That the management board of Eesti Gaas, in Latvia to one of the two liquefied natural
would allow the import of additional cheap Estonia’s chief power utility, said, ERR. gas (LNG) terminal projects, a terminal
gas from Azerbaijan. . ee, an Estonian news website, reported on planned in Skulte, Prime Minister Krisjanis
September 1, Karins (New Unity party) said after the
He says that household gas prices are government meeting on August 30, LSM.lv,
Stage one of Estonia’s Paldiski based on the costs of gas purchased at gas a Latvian news website, reported.
exchanges.
The draft law will be presented to the
LNG terminal completed increasing, occasionally reaching €330 per government by September 20. The draft law
“Recently, gas prices have been steadily
will then have to be reviewed by the Saeima.
Phase one of the construction of a liquefied megawatt-hour. There is currently a tinge Minister of Economics Ilze Indriksone
natural gas (LNG) terminal in the Estonian of optimism in the air as the price has been (National Alliance) said at the press
port city of Paldiski was completed on dropping for a few days, but it is unclear conference after the government meeting
August 31, Estonia’s ETV news show whether this trend will continue,” Kaasik that parliament will be supportive of this
‘Aktuaalne kaamera’ (AK) reported on said. law because it is aware of the importance of
August 31. In September, the home package price this issue.
The terminal is part of an effort to meet hiked to €2.65 per cubic meter, up from The minister also said that the cabinet
Estonia’s annual natural gas consumption €0.48 per cubic meter at the beginning of has agreed to grant the status of a national
needs, estimated at 5 TWh, while last year. interest object to the Skulte project on
decoupling from supplies from the Russian In the spring of 2021 gas prices on the basis of the opinions of the security
Federation. LNG, as its name suggests, is European markets were around €20 per 1 authorities. The status of a national interest
transported in liquid form via ship and MWh, but in the second-to-last week of object means “faster procedures” for its
then regasified on terra firma, for supply to August they reached a new high of €339 per implementation.
consumers. 1 MWh. The Skulte LNG project is expected to be
The work has gone to plan, Reedik Analysts expect prices to rise again in the implemented by autumn 2024, according
Raudla, construction manager at the autumn due to Gazprom’s behaviour. to the information provided by the project
Pakrineeme Sadam, the company overseeing applicant.
the terminal, said: “This is a mooring pier, The Skulte LNG Terminal was registered
to which an almost 400m-long gas tanker, Bulgaria seeks to import oil, in 2016. The true beneficiaries of this
or floating storage regasification unit company are Arnfins Unums and Peteris
(FRSU) ship will be anchored.” natural gas from UAE, President Ragauss. In May of this year, 20% of the
“Following that, a waterborne connection shares were purchased by fuel trader AS
is created via a gas pipeline which connects Radev says Virsi-A.
directly to the [land-based] compressor
station and then the Balticconnector Bulgaria is probing opportunities to import
[Finland-Estonia undersea gas pipeline],” natural gas and oil from the United Arab

P18 www. NEWSBASE .com Week 35 02•September•2022