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finance the project, did not allow for longer Previously Hungary’s Russian gas was surging again this week is a powerful
consideration. delivered through the Friendship pipeline reminder of the UK’s need to maintain its
In the meantime, Kosovo’s opposition passing through Ukraine. Kyiv considers that own North Sea supplies, according to OGUK,
parties have criticised the government gas supplies bypassing Ukraine undermine which represents the nation’s offshore gas and
decision. the energy security of the country and the oil industry,” OGUK said.
The Democratic League of Kosovo called whole of Europe and is in breach of the On Tuesday wholesale gas prices soared
it “a strategic mistake” that goes “against the Hungarian-Ukrainian basic treaty of 1991. 37% in one day, hitting £4 per therm in short-
interest of Albanians in the region,” RTK A meeting of the Hungarian-Ukrainian term global markets (equivalent to £1.41
reported. economic committee scheduled for this week per cubic meter). This is a 700% increase
The Alliance for the Future of Kosovo, led was cancelled. compared with more typical levels at the start
by former prime minister Ramush Haradinaj, of 2021, OGUK said.
said “the rejection of the American gas “Factors causing the latest surge include
pipeline project is a dangerous action against Slovak refinery company Russia making a 70% reduction in the amount
the interests of Kosovo and the US.” of gas delivered to the EU via its Belarussian
The American Chamber of Commerce in Slovnaft receives highest pipelines, plus surging global demand for
Kosovo called it a hasty decision.. Liquefied Natural Gas (LNG) shipments,
fine for air pollution especially from Asia,” OGUK said.
“The UK’s own gas fields in the North Sea
Hungarian-Serbian gas The Slovak Environmental Inspectorate and Irish Sea have served the nation well – but
(SIZP) detected air pollution in 42 cases from
their output is falling, partly because too few
interconnector starts January 1 to August 18, imposing 29 fines new fields have been developed. From self-
sufficiency in 2004 the UK can now meet only
in the total amount of €109,400, with the
operation highest fine received by the Slovnaft refinery half its own gas needs,” OGUK added.
in Bratislava, said a spokeswoman for the
It means, OGUK said, the UK is
Hungary and Serbia officially opened the inspectorate Tamara Lesna on September 30. increasingly reliant on imports.
interconnector between the two countries on Slovnaft was imposed a fine of €20,000. According to OGUK, in 2020 the UK
September 30 at the Hungarian side of the “We were fined by SIZP for exceeding consumed 74 billion cubic meters of gas –
border. The pipeline will connect Hungary to the emission limit for dust at one of the about 1,100 cubic meters per person. Half
the TurkStream pipeline. production units. Although we see the fine had to be imported from other countries,
Minister of Foreign Affairs Peter Szijjarto as justified, exceeding the limits was not including Norway, Qatar Russia, Trinidad and
and Serbian Minister of Internal Affairs intentional, as it was a malfunction in the Tobago, Egypt, and Nigeria.
Aleksandar Vulin opened the gas link at an technological equipment. The licensor of this “OGUK’s Energy Transition Outlook, to be
official ceremony on Thursday. equipment will propose a corrective measure, published later this month, will warn that such
The first commercial deliveries of gas which will be implemented during technical reliance will increase – unless the UK invests
to Hungary through the line will begin on shutdowns at the refinery,” explained the in the new resources known to lie under its
Friday, the first day of the new gas year at company spokesman Anton Molnar. continental shelf. Without such investment
the same as Hungary’s new, long-term gas Marelli Kechnec Slovakia, which designs UK gas output will plummet another 75% by
delivery contract with Russia will come into and manufactures advanced technological 2030,” OGUK said.
effect. systems and component parts for the Deirdre Michie, chief executive of OGUK
Under an agreement signed earlier this automotive industry, received the second said: “The gas resources off our own shores
week, Russian state energy giant Gazprom highest fine. can boost our energy security and protect
will deliver 3.5bcm of the 4.5bcm of gas “The plant operator failed to ensure that jobs. The UK industry’s own greenhouse gas
it gets from Russia annually under the the loss of refrigerant did not exceed the emissions, generated during production from
contract through the Hungarian-Serbian established leakage limits and to comply with these new fields, would also be a lot lower
interconnector. The total annual delivery the interval of checks for refrigerant leakage,” than those generated by liquefied natural gas
capacity of the pipeline is 8.5bcm. Some 32% Lesna said. imports.”
of the first year’s supply has been already
booked. “The UK, and our industry are on a
Commenting on a complaint to the OGUK warns that more journey to achieve net-zero emissions by 2050.
European Commission by Ukraine We fully support this goal but 23m UK homes
concerning Hungary’s new Russian gas investment needed in North are still heated by gas which also generates
contract, Szijjarto said Hungary considers the 40% of our electricity, so we will need gas
move an “attack on its sovereignty”. Sea supply to power us through this green transition. It
“Neither Ukraine nor any other country would be far better to get as much of that gas
has any business concerning with whom, on Investing in new North Sea gas resources is as possible from sources we can control rather
what and in which manner Hungary reaches essential for the UK to avoid shortages, price than rely on other countries.”
agreements,” he added. shocks, and rising import costs, industry body
Gas supply is neither an ideological nor a OGUK has warned, adding that, without fresh
political issue because ideology and politics investment, North Sea gas production will
do not provide heating of apartments and the plummet by 75% by 2030.
work of industry, he said. “The global gas shortage that sent prices

Week 40 07•October•2021 www. NEWSBASE .com P17