Page 14 - FSUOGM Week 25 2021

FSUOGM PERFORMANCE FSUOGM

European gas prices surge above

$360 per 1,000 cubic metres

EUROPE NATURAL gas prices on European spot markets placed into storage so far this injection season,
have continued their upward ascent, surging to while 66 bcm of gas was withdrawn during
The high price is above $360 per 1,000 cubic metres, according to last winter. Gazprom warns this poses a risk to
particularly unusual at Gazprom. energy security.
this time of year. The spot price on the NCG gas hub in Ger- The European gas market remains “very
many hit $363.8 per 1,000 cubic metres on June robust” and “undeniably bullish,” analysts at BCS
14, or more than $100 above the price in Feb- Global Markets wrote in a research note on June
ruary, Gazprom told reporters on June 16. The 16. “Prices are at winter-like levels, and indeed
company also noted slow injection rates at Euro- are challenging the highest prices seen in at least
pean gas storage facilities. four years. Meanwhile, Asian gas prices continue
Gas prices are typically higher in winter and their own long winning streak, pulling LNG to
lower in summer, giving companies an incentive that region and away from Europe.”
to store more volumes during the hotter months These bullish conditions are good news for
of the year. But this year is anything but typical, Gazprom’s share price, which touched $7.71 per
as prices have surged in recent months because share on June 14, from a low of $5.7 per share
of tight supply and growing demand driven by in mid-April. The company said in May it was
the post-coronavirus (COVID-19) economic targeting a near 12% growth in gas production
recovery. in 2021. It also aims to increase its EBITDA by
According to Gas Infrastructure Europe 50% this year to $30bn, deputy chairman Famil
(GIE), only 13.6bn cubic metres of gas has been Sadygov said at a press conference on June 16. ™

PROJECTS & COMPANIES

Gazprom Neft picks Tecnicas

Reunidas for DCU

RUSSIA RUSSIAN oil company Gazprom Neft has hired fuels for the Russian market,” Gazprom Neft’s
Spain’s Tecnicas Reunidas to oversee the con- deputy chairman, Anatoly Cherner, said in a
Gazprom Neft is in the struction of a delayed coking unit (DCU) at its statement. “Cutting-edge solutions are making it
midst of a RUB700bn refinery in Moscow. possible for us to improve production efficiency
refining modernisation The DCU, due online in 2025, will form part while, at the same time, reducing environmental
programme. of a new deep refining complex that Gazprom impacts.”
Neft is developing at the refinery. Tecnicas Reu- Gazprom Neft is in the midst of a
nidas will manage project design and equipment RUB700bn modernisation programme at
deliveries, as well as construction and installa- its refineries in Moscow and Omsk. The first
tion work and acceptance testing. Its contract is phase, now concluded, enabled the complete
worth more than RUB20bn ($270mn). switch to Euro-5 standard fuels. The second
The DCU will help the Moscow refinery phase is now ongoing and is aimed at improv-
to expand its output of automotive fuels at the ing refining depth and expanding the light
expense of heavier fuels, and commence produc- product yield.
tion of petroleum coke, used in the metallurgy As part of this work, Gazprom Neft brought
industry, Gazprom said. The other main unit on stream a new oil processing train at the
in the deep refining complex is a hydrocrack- 240,000 barrel per day (bpd) Moscow plant in
ing facility, whose construction is managed by March last year. It went on to inaugurate a new
South Korea’s DL E&C. The complex’s launch $1.4bn Euro+ processing complex at the site in
will increase the refinery’s refining depth to close July that will boost its Euro-5 fuel production.
to 100%. Gazprom Neft was among a number of
“The company is continuing the modern- Russian refiners to sign investment deals with
isation of its directly owned refining facilities, Russia’s energy ministry earlier this year, giv-
directing investment at further increasing out- ing it a subsidy in return for investing in further
put of high-quality gasoline, kerosene and diesel upgrades. ™

P14 www. NEWSBASE .com Week 25 23•June•2021