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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