Page 10 - FSUOGM Week 06 2022

FSUOGM POLICY FSUOGM

Kazakhstan freezes

LPG price until 2024

KAZAKHSTAN KAZAKHSTAN plans to freeze the price of spending priorities such as roads, schools and
domestic LPG sales until 2024, after reversing a healthcare, while also sometimes leading to mar-
Kazakhstan is putting hike in the fuel’s cost in January after it triggered ket distortions.
reforms on the shelf nationwide protests. However, while reforms have been wel-
amid public dissent. Until January 1, 2024, prices will remain at comed by international financiers, they have
the same level as they were in December last year, proven unpopular with the Kazakh public. The
Kazakh Prime Minister Alikhan Smailov said. In recent unrest has prompted the government to
addition, an extra 150,000 tonnes of the fuel will revert back to greater state control of prices
be made available for the domestic market. and supply.
In another move to address mass discontent, In addition to freezing LPG prices, the gov-
the government also said it would expand pro- ernment has also stopped selling LPG on an
duction of certain staple food products. electronic sales platform. Instead, supplies will
Kazakhstan has been working for years to be made according to requests made by local
end fuel subsidies and introduce greater mar- governing bodies. This risks leading to shortages
ket liberalisation. Such subsidies are a burden in the event that demand unexpectedly rises and
on its budget and take funds away from other the supply is not there to cover it. ™

ENERGY TRANSITION

Novatek gets Arctic CO2

sites certified

RUSSIA NOVATEK'S press centre reported at the start “The news is positive for company in the long
of February that the company had successfully term and is in line with Novatek's plans to decar-
These storage facilities completed the first of three stages to get inter- bonise. We highlight that Novatek is taking prac-
will be used when national certification for long-term CO2 under- tical steps in hydrogen and ammonia production
manufacturing LNG and ground storage sites on the Yamal and Gydan by implementing the Obsky Gas Chemical Com-
ammonia. peninsulas, and that site feasibility certificates plex project. This supports the company's com-
had been issued for the further study of the mitment to the development of ESG initiatives,
sites and subsequent certification stages. The which is likely to be welcomed by investors, in
certificates issued confirm that the geological our view. The project might cost some $4bn for
formations within the Ob (Yamal) and Tadebi- the entire plant,” VTBC said. ™
yakhinsky (Gydan) licence areas have a calcu-
lated potential to store at least 600mn tonnes of
CO2.
These storage facilities will be used when
manufacturing low-carbon products (more than
2mn tonnes per year of ammonia and 19mn tpy
of LNG) at the Obsky Gas Chemical Complex
and Yamal LNG, which is going to use сarbon
capture and storage (CCS) technologies, VTB
Capital (VTBC) said in a note.
Novatek might capture up to 4mn tpy of
carbon dioxide as a by-product of ammonia
(assuming 2mn tpy of ammonia capacity),
according to VTBC.

P10 www. NEWSBASE .com Week 06 09•February•2022