Page 16 - FSUOGM Week 28 2022

FSUOGM NEWS IN BRIEF FSUOGM

The export of Azerbaijani gas to Europe invasion of Ukraine, which has devastated There are a number of major concerns
suddenly became of vital interest amid the company and caused a fuel crisis in the about Turkmenistan’s GHG emissions
the Russian invasion of Ukraine. Turkey country. Many are now seriously concerned including major releases of methane from
accounted for 38% or 4.3bcm, Georgia 14% about the coming heating season. pipeline systems, detected by satellites.
or 1.5bcm, while Europe was a receiver of "In light of the protracted circumstances The source was quoted as saying:
5.4bcm. Earlier, Azerbaijani President Ilham affecting Ukraine as a result of Russia's "Recently, ESCAP, in cooperation with
Aliyev said that the export of Azerbaijani ongoing military intervention and its the UN Resident Coordinator and UN
gas in 2021 was 22bcm, in 2022 the volume impact on Ukraine's energy security, the Country Team in Ashgabat, organised
of supplies would amount to 24bcm. In issuer, at the request of the borrower, has a special national online seminar based
turn, Shahbazov stated that gas exports initiated this consent request in order to on our methodology. After completing
from Azerbaijan to Europe in 2022 would obtain the approval of the noteholders the training and completing the tasks,
exceed 10bcm. to facilitate the borrower's retention of the technical experts who participated
The volume of gas supplies from available cash to support Ukraine's strategic in the seminar developed their skills
Azerbaijan to Europe via the Trans-Adriatic priorities," according to the stock exchange in maintaining and providing high-
gas pipeline (TAP) from December 31, report. quality greenhouse gas emission
2020, to December 31, 2021, was 8.2bcm. Naftogaz needs to repay three Eurobonds inventories, which lay the foundation
The European Union (EU) countries' that were all placed in 2019. The company for the development of their monitoring,
expenses for gas from Azerbaijan, supplied said it will pay all coupons on 2022 and reporting, and verification systems, as well
via TAP, in Q122, were estimated at €2.1bn 2024 Eurobonds on July 19, 2024 and as for improving the national transparency
(2.5%). Azerbaijani gas supplies via the TAP redeem 2022 Eurobonds on the same day. It framework in accordance with the
gas pipeline to consumers in Italy, Greece also said it will aim to pay coupons for 2026 requirements of the Paris Agreement."
and Bulgaria began on December 31, 2020. Eurobonds on November 8, 2024. ESCAP, together with UN resident
Meanwhile, in the oil sphere, the export The three outstanding Eurobonds are coordinators and UN country teams,
of oil with condensate in January-June $335mn of three-year bonds at 7.375% is, meanwhile, said to be exploring
was 13.4mn tonnes, the country's Energy and €600mn of five-year bonds at 7.125% the possibility of supporting both
Ministry said. According to statistics, in placed in July 2019, and $500mn of seven- Turkmenistan and other Central Asian
the total volume of exports about 12.6mn year bonds yielding 7.625% placed in countries in digitising their GHG emission
tonnes fell to the share of the consortium, November 2019. The European Bank for inventories and collecting data.
0.78mn tonnes to SOCAR. The Ministry Reconstruction and Development (EBRD) "This will make it possible to provide
added that the production of oil with brought a fifth of the €600mn five-year information online to all interested parties
condensate in Azerbaijan in H122 was bonds. when planning long-term low-emission
16.5mn tonnes. At the same time, 10.4mn The company has been severely affected development strategies and national plans
tonnes of oil were produced from the by the war and Ukraine now has the lowest for zero emissions of carbon dioxide
Azeri-Chirag Gunashli (ACG) block, gas storage in Europe, with tanks only 21% and greenhouse gases," ESCAP was also
3.9mn tonnes of oil with condensate were full. Unless it can pump more gas into reported as saying.
produced by SOCAR, and 2.2mn tonnes of its tanks before the heating season starts,
condensate from the Shah Deniz field. In Ukraine will face a crisis this winter.
the total of January-June 2022, Azerbaijan Ukraine’s current amount of gas would Russia may keep Ukraine
processed 2.7mn tonnes of oil. run out on October 29 if deliveries were
The ministry said that since the start of turned off tomorrow, and at best the end of gas transit after 2024 if
their development and as of July 1, 2022, a November if the autumn is mild. Ukraine
total of about 594.8mn tonnes of oil with is very likely to have an energy crisis this sees demand
condensate have been produced from the winter, as it has not imported gas from
ACG block and from the Shah Deniz field, Russia for over three years and its European Moscow does not rule out continuation
including 556.8mn tonnes of oil from the friends will be short of gas for themselves of gas transit across Ukraine after 2024
ACG, from the Shah Deniz field was 38mn this winter. if there is demand in Europe and the
tonnes of condensate. The total export of oil Naftogaz’s decision has also raised pipeline system is not destroyed, Dmitry
from the ACG block and condensate from fears that Ukraine will default on a $2.2bn Birichevsky, head of the economic
the Shah Deniz field as of July 1 was 593mn sovereign bond in November. The possible cooperation department of the Foreign
tonnes. default puts extra pressure on Western Ministry, told PRIME on Wednesday.
nations to speed up plans to extend "The E.U. has announced a plan to
emergency budgetary support. reject Russian natural gas. This means
Naftogaz to defer eurobond refusal from transit across Ukraine as well
and Kiev’s deprivation of revenue from it,”
repayments for two years ESCAP tackling Birichevsky said.
“If the European consumers keep
Ukraine’s largest state-owned oil and gas Turkmenistan’s GHG demand and the Ukrainian transport
company Naftogaz has asked bondholders system remains working, Russia will be
of nearly $1.5bn of bonds to defer coupon emission inventories ready to consider prolonging transit across
payments by two years, Interfax reported on Ukraine among other options."
July 12. The Economic and Social Commission for The official said that Russia fulfills all
The company was expected to pay a Asia and the Pacific (ESCAP) is promoting obligations under the current contract,
$335mn 2022 Eurobond coupon payment the quality management of greenhouse while Ukraine limits transit by refusing to
on July 19, but asked holders, via Kondor gas (GHG) emission inventories in take gas at the Sokhranovka station.
Finance plc, to postpone the repayment by Turkmenistan, a source in ESCAP has been
two years, placing the blame on Russia’s cited as saying by Trend.

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