Page 12 - FSUOGM Week 21 2022

FSUOGM INVESTMENT FSUOGM

The statement expressed gratitude to Sulzer’s they were scrapping all new investment in Rus-
employees around the world and said that the sia following the fourth sanctions package of
company was determined to continue providing the EU, which banned investment in the energy
support to its 300-member workforce in Russia sector in response to Russia’s military invasion
while exiting that country. of Ukraine. Halliburton, another major oilfield
The Swiss engineering firm has at least three service provider (OSP), has also said it will cease
subsidiary companies that supply and service operations in the country. ™
equipment in Russia. They are Sulzer Pumps;
Sulzer Chemtech, which makes and services
heat exchangers, as well as other equipment
for the petrochemical and energy industries;
and Sulzer Turbo Services Rus, which services
gas turbines for a client list that includes T Plus,
TGK-2 and Gazprom Energoholding (GEH).
Sulzer’s announcement further expands the
list of Western companies walking away from
or freezing their operations in Russia. This list
already includes many organisations active in
the oil and gas industry, which is one of Mos-
cow’s main sources of hard currency earnings
and budget revenues.
In March 2022, for example, the US-based
oilfield service giants Weatherford International,
Baker Hughes and Schlumberger announced Sulzer’s service centre near Moscow (Photo: Sulzer)

PERFORMANCE
GAC data say Chinese spending on Russian

oil, gas, coal climbed by 75% y/y in April

CHINESE spending on Russian crude oil, natu- overland pipeline. State-run Gazprom, Russia’s
ral gas and coal jumped by more than 75% year largest gas producer, sends large amounts of gas
on year to $6.42bn in April, according to data to the Chinese market via the Power of Siberia
released on Friday, 20 April 20 by the General pipeline network, which has a design capacity of
Administration of Customs (GAC). 38bn cubic metres per year.
The GAC data did not provide a full break- Meanwhile, Russian coal shipments to China
down of spending on Russian fuels. However, it came to 3.82mn tonnes in April, down by 14%
did indicate that Chinese buyers had imported y/y, according to GAC figures. The decline stems
6.55mn tonnes (1.594mn barrels per day (bpd)) from mild spring weather, higher domestic
of Russian crude oil in April, 4% more than in coal production and sluggish domestic energy
the same month of 2021. demand in light of COVID-related shutdowns.
The customs agency did not specify whether Even so, China did buy 1.71mn tonnes of Rus-
the increase had been more pronounced along sian coking coal, up by more than 100% y/y and
specific transportation routes. (China imports marking the third straight month of increases,
Russian oil by sea and by overland pipeline, and as steel mills stocked up in the expectation that
sometimes by rail as well.) It did note, though, government spending was set to rise. ™
that Russia had been China’s second-largest sup-
plier of crude in April, with only Saudi Arabia
delivering larger volumes.
The dataset also showed that Chinese
imports of Russian LNG had shot up by 80% y/y
in April, reaching 463,000 tonnes. This increase
occurred even as China’s overall LNG purchases
declined as a result of lockdowns and restric-
tions on business and industrial activity related
to coronavirus (COVID-19) outbreaks.
The GAC data did not provide any infor-
mation on Russian gas deliveries to China via Oil tanker berthing at Chinese port of Zhoushan (Photo: cnsphoto)

P12 www. NEWSBASE .com Week 21 25•May•2022