Page 12 - MEOG Week 11 2022

MEOG NEWS IN BRIEF MEOG

tenders after selling about 100,000 kiloliters, barrels were held by oil producers in Japan. meeting on growing media reports that the
or 629,000 barrels, of Oman crude from the S&P PLATTS Cyprus-Israel-Greece pipeline project, which
reserves via a Feb. 9 public tender. lost US backing and support in January this
Japan’s serialized sales of national ELPE deal for additional year, could be a solution for Europe in the face
petroleum reserves was made by advancing of current global energy developments.
its planned sales of crude for replacement in Saudi oil quantities But the EastMed pipeline would be a more
the national reserves without violating the medium-term choice for the EU as it would
country’s petroleum stockpiling law. Hellenic Petroleum (ELPE), Greece’s biggest take around five years to be up and running,
In recent years, the country has been oil refiner, has clinched an initial deal to get Pilides said.
replacing medium and heavy crude stocks in additional crude oil supplies from Saudi “We certainly hope that the development of
the national petroleum reserves with lighter Arabia, two sources from the refiner said on the Aphrodite deposits and the other deposits
grades, reflecting the growing domestic Tuesday. in Cyprus will come to prominence and be an
demand for such products. “There has been an initial agreement to alternative source of energy supply to the EU
Japan’s additional crude sales come after it increase crude oil quantities that Hellenic and in other markets,”’ Pilides said.
started releasing barrels of oil from privately- Petroleum buys from Saudi Arabia to further “But whether the EastMed pipeline
held petroleum reserves March 10 — part of secure the smooth supply of the Greek market will be built will definitely depend on the
its contribution to the International Energy with fuel,”’ one of the sources told Reuters. confirmed quantities available for export. At
Agency’s coordinated release of around 60 Saudi Arabia accounted for 8% of the moment the Cypriot confirmed deposits
million barrels to aid oil prices rattled by Hellenic’s crude oil feedstock last year, its fifth are not enough, but if there is interest from
Russia’s invasion of Ukraine. biggest supplier after Kazakhstan, Iraq, Russia Israel, then the EastMed could definitely be an
Japan is releasing 7.5 million barrels of and Egypt. option.”’
crude and oil products, which equates to Hellenic Petroleum bought some 2.5 Asked about the pipeline’s viability,
four days of mandatory stockpile volumes, million tons of Russian crude, about 18% of Pilides said the deadline for completion of
by allowing local refiners and oil products its total crude supplies, last year and has said the feasibility study was the end of this year.
importers to lower their stockpiles in the it could replace it with similar grades mostly “Therefore, this is the timetable that is still in
privately-held reserves by four days during 30 from the Middle East if needed. force,”’ she said.
days to April 8. Moscow is starting to face problems The EastMed pipeline if it ever comes
Japan’s planned release equates to 12.5% in selling its crude oil and oil products as to fruition would be one of the longest and
of the worldwide total, and it is the second- Western sanctions over Russia’s invasion of deepest underwater pipelines in the world and
largest after the US’ release of 30 million Ukraine and voluntary actions by buyers start would connect Israel’s Leviathan and Cyprus’
barrels from its Strategic Petroleum Reserve to bite. Aphrodite fields to Europe. It would be able
under the joint IEA action. REUTERS to carry around 10-12 billion cubic metres of
At end-January, Japan held a total of natural gas per year, which is estimated would
around 473.05 million barrels of petroleum cover about 10 per cent of Europe’s supply.
reserves, equating to 236 days of domestic GAS Greece, Cyprus and Israel had approved an
consumption, comprising national petroleum agreement for the €6 billion pipeline, which
reserves, oil reserves held by the private sector Caution over prospects for was in the planning for several years. They
and a joint crude oil storage program with oil had aimed to reach a final investment decision
producing countries, according to the latest reviving EastMed pipeline this year.
METI data released March 15. But in an apparent U-turn, the US State
Crude stocks in the national oil reserves Even if the EastMed pipeline project kicked Department announced in January it was
accounted for 285.99 million barrels of the off immediately, it would not provide a abandoning the EastMed project, although it
total, while oil products in the national solution to the energy crisis that Europe is had been declared a ‘project of common
reserves comprised another 8.99 million experiencing as a result of Russia’s invasion interest’ by the European Commission.
barrels. of Ukraine and the subsequent sanctions on Washington, under the Biden administration,
Privately-held crude reserves totaled 74.03 Moscow, Energy Minister Natasa Pilides said let its concerns be known in a note sent to
million barrels, with oil products stocks at on Wednesday. Greece.
97.74 million barrels, while 6.29 million Pilides was commenting after the cabinet Concerns about the financial viability

P12 www. NEWSBASE .com Week 11 16•March•2022