Page 9 - FSUOGM Week 11 2022

FSUOGM PERFORMANCE FSUOGM

OIES warns of winter demand destruction

if Russia cuts off gas

EUROPE EUROPE might be able to get through the sum- imports from Norway, North Africa and Azer-
mer using its stored gas reserves if Russia were baijan, Europe might be able to reduce the
The crunch time will to disrupt supplies to the continent, but it would impact by half. “But this still leaves a substantial
come next winter. face significant demand destruction next winter, amount of unmet demand in the power and
according to a report published by the Oxford industrial sectors, if the heating load is to be pro-
Institute for Energy Studies (OIES) tected,” OIES said.
If Russian shipments were cut to central and “If a curtailment actually occurred, gas
western Europe on April 1, 2022 for a whole year, prices would almost certainly spike even
OIES experts said that it might be possible for the higher. That, in turn, would mean that
region to get through the summer by drawing end-consumers of gas and electricity could
down on any remaining storage without signifi- face the prospect of significantly higher bills
cant demand destruction. than they are already facing this summer,”
“But that simply postpones the problem, by OIES continued. “This would even apply to
leaving storage empty,” OIES said. “With no gas customers in Europe who may not be directly
in storage to withdraw and no Russian gas, there impacted by any shortfall in gas flows from
is a strong likelihood that 40% of gas demand Russia, such as the UK.”
in central and western Europe (about 125 bcm) OIES also cautions that even if flows con-
could be unmet next winter, without any mitiga- tinue at the current rate, “the market is still finely
tion measures.” balanced and any real easing of this tightness of
With mitigation measures, such as extra the market would likely require a return to the
LNG, increased production at the Groningen higher levels seen in the first nine months of
field in the Netherlands, and additional pipeline 2021.” ™

POLICY

UK slaps sanctions on

Gazprom, Rosneft CEOs

RUSSIA THE UK has slapped sanctions on the CEOs of of Rosneft in 2004, and then Russia’s deputy
Russia’s largest oil and gas producers Rosneft and prime minister in 2008-2012. He became CEO
Both men have close Gazprom over Moscow’s invasion of Ukraine. of Rosneft in 2012.
ties to Putin. Foreign Secretary Liz Truss announced a Sechin has already been sanctioned by the US
package of sanctions on March 10 in response to and the EU.
the escalating conflict in Ukraine, including an Miller likewise served in the Saint Peters-
asset freeze and travel ban measures on seven of burg mayor’s office under Putin. He has served
Russia’s wealthiest and most influential oligarchs, as chairman of the management committee and
all of which have close ties to Russian President CEO of Gazprom since 2001.
Vladimir Putin. This includes Rosneft CEO Igor Other oligarchs to join the UK’s blacklist
Sechin and Gazprom CEO Alexei Miller. include Roman Abrahmovich, owner of Chel-
Sechin is seen as one of the most influential sea FC, and Nikolai Tokarev, president of Russia’s
figures in Putin’s inner circle. Understood to state-owned pipeline operator Transneft.
be a member of the so-called Siloviki, a pow- Truss said the close ties of the individu-
erful group of Russian politicians that came als to Putin means “they are complicit in his
into politics from the security and military aggression.”
services, Sechin and Putin became close asso- “The blood of the Ukrainian people is on
ciates in the early 1990s. Sechin served as chief their hands. They should hang their heads in
of staff to Putin when he was deputy mayor shame,” she said. “Our support for Ukraine will
of St Petersburg in 1994, and when Putin not waver. We will not stop in this mission to
became president in 2000, Sechin became his ramp up the pressure on the Putin regime and
chief of staff. He went on to become chairman choke off funds to his brutal war machine.” ™

Week 11 16•March•2022 www. NEWSBASE .com P9