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was completed, the battle around the controversial pipeline would move to the regulatory realm of launch and capacity utilization. The decision being appealed was made in May, in which the German energy regulator refused a request by NS-2 for exemptions from European rules regarding 3rd-party access, unbundling, and tariffs. In particular, we think the issue will be on a European requirement that 50% of pipeline capacity be opened up to producers other than the owner. This sets up a conflict with Gazprom, as it is the only entity legally allowed to export gas from Russia via pipeline. Likely a temporary problem, but may limit capacity utilization for a time. The original Nord Stream project was eventually granted such a waiver after running at only half capacity for a couple of years, and we would expect a similar outcome for Nord Stream-2 – or a workaround whereby ownership of the gas is transferred to the buyer before the gas crosses into German territorial waters – to eventually be reached. Regardless, we now think Nord Stream-2 will be operating at some level before end-2021.
Russia’s government plans to gradually increase the share of the country on the global LNG market to 20% considering the rise in supplies to Asian-Pacific countries, Prime Minister Mikhail Mishustin said on June 7. "The issue is about a promising, growing market with high energy consumption,” Mishustin said. "We are actively expanding infrastructure to increase deliveries in this direction and take firm positions there," he added. "Russia’s share on the global market is expected to eventually increase to 20%.” The Russian government plans to allocate more than RUB21bn ($288mn) for construction of an approach channel to the LNG terminal in Kamchatka, with over RUB5bn to be spent this year, Mishustin noted. "The new terminal will allow transshipment of more than 20mn tonnes of LNG per year," he said.
OPEC+ has decided to keep its June-July production quotas intact. The next OPEC+ ministerial meeting is to take place on 1 July.
Back in April, OPEC+ decided to increase oil production 350kbbl/d in both May and June, and then 440kbbl/d in July. On top of the rise in the OPEC+ quota, Saudi Arabia was to reverse its 1mmbbl/d voluntary production cut, increasing crude output 250kbbl/d in May, 350kbbl/d in June and 400kbbl/d in July. Russia was to increase its production to a combined amount of 114kbbl/d over May-July.
Assuming that Russia raises its oil output 114kbbl/d in total in May-July, with no growth afterwards, Russian oil and liquids production might amount to 471mnt and 514mnt, respectively, in 2021 (or -0.5% and +0.4% above the 2020 level, respectively) we estimate.
Chief Executive Officer of Gazprom Alexei Miller and Foreign Minister of Mongolia Batmunkh Battsetseg discussed the project of Soyuz-Vostok gas pipeline construction for supplies of Russian gas to China through Mongolia, the Russian gas holding said on Wednesday. "In particular, results of
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