Page 8 - FSUOGM Week 05 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom non-FSU exports fall

sharply in Jan

RUSSIA EXPORTS by Russia’s state gas supplier Gaz- recently estimated that the country could boost
prom to countries outside the former Soviet gas flow to Europe by a third if it wanted to.
But gas prices remain Union dropped 41.3% year on year in January, The European Commission’s position is sim-
comparatively low tallying up to only 11.4bn cubic metres, the ilar. On January 31, its executive vice president,
versus December company reported on February 1. However, Valdis Dombrovskis, expressed concern about
heights. European gas prices have continued to decline the “weaponisation” of Russian gas supplies. The
in recent days, thanks to warm weather and a commission is looking into whether Gazprom’s
surge in LNG supply that has offset the drop in practises are in accordance with EU market
Russian volumes. rules, he said.
Gazprom’s production during the month was “Currently, despite very high demand for gas
largely unchanged at 47.4bn cubic metres (bcm), in the EU, Russia is not stepping up supplies,”
up 1%, while deliveries to the Russian market he said at a conference in Kyiv. “Clearly there is
actually rose by 3.2%. certain action from Russia’s side which triggered
Russia has been accused of withholding gas the European Commission’s investigation into
supply from the European gas market to up the whether Gazprom is in this situation acting in
ante in its dispute with the West over Ukraine. line with market principles.”
Although analysts note that Gazprom continues Despite weak Russian flow, European gas
to meet its supply obligations, and argue that the prices have fallen in recent days, owing to
company is not offering extra gas on the spot comparatively warm weather, extra LNG plug-
market simply because it is not in its commer- ging the hole in supply and strong wind power
cial interest. Some have also said that Gazprom generation.
may be at or near to its full production capacity. The March delivery contract at the Dutch
Among those blaming Russia for exacerbat- TTF hub was trading at under €76 ($86) per
ing the European energy crisis is International MWh as of 14:30 GMT on February 1, down
Energy Agency (IEA) Director Fatih Birol, who more than 10% versus the previous session. ™

PGNiG ships second US LNG cargo

to Ukraine

UKRAINE POLAND’S state gas company PGNiG has deliv- “The new LNG deal adds to PGNiG and
ered a second cargo of US LNG to Ukraine, the ERU’s efforts in supporting the long-term energy
Poland wants to expand company reported on February 1. independence of Ukraine, by developing new
LNG transit volumes to The cargo has been sold to US-backed energy gas production through joint gas exploration
Ukraine. investor Energy Resources of Ukraine (ERU) and production,” he said.
and will be sent to Poland’s Swinoujscie LNG PGNiG dispatched the first cargo of US LNG
terminal at the end of February. From there, it to Ukraine in late 2019. Ukraine relies on gas
will be sent via the Polish gas grid to the Ukrain- from Poland as well as Hungary and Slovakia to
ian border. supplement its domestic supply. These deliveries
“This is yet another delivery of American have allowed the country to go without buying
LNG to Ukraine made by PGNiG in cooperation any gas from Russia in more than six years.
with ERU, which is our strategic trading partner Poland is working to expand its LNG import
on the Ukrainian gas market,” PGNiG President capacity and it is building a new pipeline from
Pawel Majewski said. “Good relations built over Norway, which would enable it to forgo Rus-
the years are particularly important now, at a sian imports itself. Its hope is that any excess gas
time of great turbulence on the gas market in capacity could be used for transiting supplies to
Europe.” Ukraine and other countries in Europe.
ERU’s managing partner Yaroslav Mudriy PGNiG is also assisting ERU in gas develop-
added that the delivery of competitive gas from ment in west Ukraine. The company in Septem-
the US would “support Ukrainian customers’ ber last year bought a licence from ERU for gas
resilience and safety of supply in the remaining exploration, and plans to begin drilling there
months of winter.” later in 2022. ™

P8 www. NEWSBASE .com Week 05 02•February•2022