Page 10 - FSUOGM Week 10 2022
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FSUOGM                                PIPELINES & TRANSPORT                                         FSUOGM


       Italy set to expand Algerian gas




       purchases in coming months




        ITALY            ITALY could be importing as much as 30bn  considerably reduce the effects of the Ukrainian
                         cubic metres per year of Algerian gas within a  crisis and sanctions against Russia on the Italian
       Italy and other   few months, the North African country’s ambas-  energy supply system,” the ambassador said.
       European countries   sador said on March 4, marking a steep increase   In related news, Italian banking group Intesa
       are scrambling for   from the 21 bcm Rome took last year.  Sanpaolo announced in early March it was
       ways of reducing their   Italy and other European countries are scram-  putting its Russian operations under strategic
       dependence on Russian   bling for ways of reducing their dependence on  review in light of Moscow’s actions in Ukraine.
       gas.              Russian gas following the conflict in Ukraine. In  One of Europe’s biggest banks, Intesa Sanpaolo
                         late February the government announced it would  has played a significant role in financing Russian
                         prepare a series of “exceptional” measures to ease  oil and gas projects and deals over the years. Its
                         the risk of a disruption in Russian gas, including a  notable transactions include a €5.2bn loan it pro-
                         push to diversify its gas import mix. Its largest sup-  vided to support Russia’s sale of a 19.5% stake in
                         plier is currently Russia, which delivered 29 bcm to  national oil company Rosneft in 2017 to Qatar
                         the country last year.               Petroleum and Glencore. It also financed the
                           “Italy will be able to count on additional sup-  construction of Gazprom’s 16 bcm per year Blue
                         plies of Algerian gas at the same price to reach,  Stream pipeline to Turkey.
                         and perhaps exceed, 30 bcm already in the next   Meanwhile Italy’s largest oil company Eni
                         few months,” Ambassador Abdelkrim Touahria  has announced it will divest from Blue Stream.
                         told newspaper Il Sole 24 Ore.       And Italian export credit agency SACE said on
                         Italy gets its Algerian gas via the Transmed pipe-  March 4 it had temporarily halted assessments
                         line under the Mediterranean Sea. Importing  of projects in Russia and Belarus because of the
                         more “could, if not completely eliminate, at least  deteriorating situation in Ukraine. ™


       EU talks for Russian fossil fuel embargo




       prompt rebuke from Moscow





        EU               THE West is considering placing an embargo  said that “a rejection of Russian oil would lead
                         on Russian oil, to which Moscow has responded  to catastrophic consequences for the global mar-
       Moscow says Europe   by suggesting that Russia could disrupt energy  ket,” and claimed that it could lead to oil prices
       will take years trying to   supplies to Europe.        spiking at above $300 per barrel.
       wean itself off Russian   The US Biden administration intends to impose   He said that, referring to Germany’s deci-
       gas, and that its gas will   a ban on US imports of Russian oil, gas and other  sion to halt the certification process for Russia’s
       still be more expensive.  petroleum products in response to the escalating  Nord Stream 2 pipeline, Moscow has “every
                         conflict in Ukraine, the Financial Times reported  right to take a matching decision and impose
                         on March 8. The decision is understood to have  an embargo on gas pumping through the Nord
                         been made in consultation with Washington’s Euro-  Stream 1 gas pipeline. He added that it would be
                         pean allies, although exactly what actions countries  impossible for European consumers to find an
                         besides the US will take is unclear.  immediate replacement for Russian oil.
                           The White House said on March 8 that Presi-  “It will take years, and it will still be much
                         dent Joe Biden “will announce actions to continue  more expensive for European consumers,” he
                         to hold Russia accountable for its unprovoked and  said. “Ultimately, they will be hurt the worse by
                         unjustified war on Ukraine,” without specifying  this outcome.”
                         measures that it would implement.      Analysts at Bank of America agree that prices
                           The West has been so far reluctant to intro-  could reach $200 per barrel if the bulk of Rus-
                         duce sanctions that would directly impact  sian oil exports are embargoed. The EU has so far
                         Russian oil and gas exports, fearful of the ramifi-  resisted taking any immediate steps, suggesting
                         cations that this would have on the global energy  instead that reliance on Russian oil and gas could
                         crisis. But countries, particularly in Europe, have  be reduced over time. “It’s not easy, but it’s feasi-
                         been warming to the idea as Russia’s military  ble,” Frans Timmermans told the European Par-
                         operations in Ukraine escalate.      liament’s environmental committee on March 7,
                           In an address on Russian state television, Rus-  noting that Russia currently supplied 40% of the
                         sian Deputy Energy Minister Alexander Novak  gas that is consumed in the EU.™

       P10                                      www. NEWSBASE .com                         Week 10   10•March•2022
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