Page 109 - RusRPTJul21

9.1.1b Oil and gas sector news
Nord Stream 2 AG reports that one of the lines of the Nord Stream 2 pipeline has been fully constructed, Interfax writes. The construction of the second line continues. Sections of the first line will now have to be joined and commissioned before launch. According to President Vladimir Putin, the second line might be constructed in two months (in August). Deputy Prime Minister Alexander Novak commented that the construction of NS 2 would be completed by the end of 2021.
The CO2 price recovered to €54.20/t ($64.50/t) on June 29, according to the Bloomberg data. Spot gas prices (TTF) rose to $414/kcm, as Gazprom opted not to book additional gas transit volumes via Ukraine for July, according to comments from Interfax. CO2 prices have been rising steadily since the end of 2020 and June’s level is close to the historical high recorded this May. The spot gas prices had started to correlate well with the CO2 quotes from early 2020 on the back of the growing importance of climate-related issues globally. Growing CO2 prices, coupled with the hot weather this summer in Europe (after the cold winter this year, which resulted in a tangible recovery in gas demand, partly covered by gas from storage) and declining LNG supplies, are also keeping gas prices at historical seasonal highs.
With Europe facing a 25% cut in pipeline gas from Russia in July,
109 RUSSIA Country Report July 2021 www.intellinews.com