Page 14 - FSUOGM Week 28 2022
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FSUOGM NEWS IN BRIEF FSUOGM
Russia to export LPG to Spanish imports of Russian
Bulgaria via Georgia gas soar in June, while Serbia, Bosnia’s Serb
Russia is to start exporting liquefied Algerian gas imports sink entity seek solution for
petroleum gas (LPG) to Bulgaria via
Georgia’s Black Sea port of Poti in July, Russian natural gas exports to Spain rose fuel exports from Pancevo
Reuters reported on July 13, quoting traders more than four-fold year on year in June,
and Refinitiv Eikon statistics. while Algerian deliveries dropped by more refinery
Bulgaria consumes between 30,000 than half, according to data released by
and 35,000 tonnes of LPG per month, but Enagas, the owner and operator of Spain’s Working groups from Serbia and Bosnia
produces only 10,000 tonnes of LPG and gas transportation system. & Herzegovina’s Republika Srpska are
imports the rest from Romania and Russia. In the latest monthly edition of the seeking a solution for fuel exports from the
However, currently Russia cannot export Enagas Statistical Bulletin, the company Serbian Pancevo refinery to the Serb entity,
via its usual routes to Bulgaria due to its reported that Spain had taken delivery of Indikator.ba reported on July 12.
war of aggression in Ukraine. Also since 8,752 GWh (895.9mn cubic metres) of In 2021, 329mn litres of fuels were
the Ukraine conflict began, Finland has cut Russian gas in June 2022, up from 2,163 exported from Serbia to Republika Srpska,
purchases of Russian LPG sharply. In 2021 GWh (221.4 mcm) in the same month of amounting to around 25% of the entity's
Russia exported 25% of its LPG to Ukraine last year. This 304.6% year-on-year increase fuel imports.
and Finland. occurred even as the European Union Serbia has banned such exports from
Moscow stopped LPG supplies to sought to discourage its member states the Pancevo refinery in order to secure
Ukraine when it began its invasion there, from including Russia on their list of gas enough fuels for the domestic market.
It has also stopped rail transit to Romania, suppliers, in view of that country’s invasion The decision was taken as Serbia’s NIS,
Hungary and Moldova via Ukraine, forcing of Ukraine. which controls the refinery, cannot import
traders to look for alternative routes. Russian supplies accounted for 24.4% Russian crude oil via Croatia’s Janaf oil
"LPG supplies via Poti are being of Spain’s total gas imports in June, the pipeline due to EU sanctions. However,
considered due to limited sales Enagas Statistical Bulletin added. This Serbia is willing to make an exception for
opportunities through other main export lifted Russia into the position of the second Republika Srpska, Indikator.ba reported.
routes," an industry source told Reuters. largest supplier of gas to the Spanish
In July, around 3,000 tonnes of LPG market, second only to the US, which has
from Surgut will be transported by rail to remained in first place for six months in a Poland tables plans for gas
Georgia's Poti, and then via sea ferry to row. US gas deliveries to Spain amounted
Bulgaria's Varna, according to Refinitiv to 10,618 GWh (1.087bn cubic metres) in supply emergency
Eikon rail data quoted by the news agency. June, equivalent to 29.6% of all imports, the
LPG rail shipments from Surgut via bulletin noted. Poland will extend until the end of 2027
Georgia's Poti to Bulgaria are about 50% The rise of Russia to the position of a special gas tariff system for households
higher than supplies to the EU via Ukraine. Spain’s second-largest supplier occurred at and so-called vulnerable users such as
Meanwhile, Bulgaria’s energy and water the expense of Algeria, according to Enagas’ schools or hospitals to shield them from
regulation commission, KEVR, said that data. The North African state slipped to the growing prices of gas, the government
natural gas for July will cost around 32% third place in June 2022, delivering 7,736 announced on July 12.
more, setting the price at BGN186.47 GWh (791.9 mcm) of gas, down by 57.3% The decision, which will require
(€95.3) per MWh. on the figure of 18,123 GWh (1.855 bcm) amendments to existing regulations and
KEVR also said that in July Bulgargaz posted in the same month of last year. therefore go through the parliament,
will rely on six suppliers of gas in July, Part of that decline is a consequence comes as Poland is bracing for the impact
including of liquefied natural gas (LNG). of Algeria’s decision to stop using the of a likely gas crisis after Russia shut down
As of July 1, Bulgaria started receiving the Gaz Maghreb-Europe (GME) pipeline to Nord Stream 1, its main European gas
full agreed amount of natural gas from deliver 9 bcm per year of gas to Spain due supply route.
Azerbaijan, which is 1bn cubic metres per to diplomatic disputes with Morocco. (The The shutdown is officially for
year. Previously, the country was receiving latter country hosts a section of the GME, maintenance until July 21 but the EU fears
just one third of that amount. which begins at the Hassi R’Mel gas field. that Russia would extend downtime under
Bulgargaz has also signed agreements Algiers did offer to make up for the halt a trumped-up pretext to push the bloc into
for supplies with traders from the region, of transit shipments through Morocco by energy and economic crisis to undermine
KEVR noted but gave no further details. increasing deliveries through alternative European unity over Moscow’s war against
Gazprom stopped supplying natural gas routes, such as the Medgaz pipeline, but it Ukraine.
to Bulgaria and Poland at the end of April, is not clear whether it has been able to keep “The current geopolitical situation
after the countries refused to pay in rubles. this promise in full.) related to Russia's invasion of Ukraine that
Bulgaria has tried to replace lost Russian Meanwhile, Enagas noted that Algeria is contributing to unprecedented increases
gas supplies with US LPG. In May, the also made a 25% supply cut this year, in natural gas prices on European markets
country's Deputy Minister of Economy, reducing gas flows from 312 MWh (31.936 requires strengthening of the Polish gas
Georgi Danailov, said: "The general mcm) per day as of March 14 to 234 supply security system,” the government
agreement between US President Joe Biden MWh (23.952 mcm) per day as of May 1. said in a statement.
and [European Commission President] These more recent reductions occurred Other than prolonging tariff protection
Ursula von der Leyen is to begin regular after Algerian authorities responded to for households and public infrastructure,
supplies of liquefied gas from the US." the Spanish government’s endorsement the government wants to be able to
of a Moroccan plan to grant autonomy to impose restrictions on trading gas via the
Western Sahara by threatening to halt gas commodity exchange.
exports to Spain. If a state of emergency is declared,
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