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FSUOGM INVESTMENT FSUOGM
Gazprom eyes stake in Baltic
chemicals complex
RUSSIA RUSSIA’S Gazprom has secured approval from processing complex, this is the first time that it
federal regulators to buy a 50% stake in the Baltic has been confirmed that Gazprom is seeking a
Rusgazdobycha might Chemical Complex near St Petersburg. role in the chemicals complex as well. The com-
be struggling to finance The project’s operator is Rusgazdobycha, a pany has only limited petrochemicals capacity
the project on its own. private company which currently has a 100% versus its rivals such as Rosneft and Lukoil.
stake. The complex will be fed with natural gas FAS’ approval comes weeks after South
liquids (NGLs) from a major gas processing Korea’s DL E&C was hired for $1.3bn to supply
complex that Gazprom and Rusgazdobycha equipment for the chemicals complex, predicted
are developing in the area. It will produce 3mn to be the largest of its kind in the world.
tonnes per year of polyethylene, 120,000 tpy No details about Gazprom’s purchase are
of butane and 50,000 tpy of hexane, starting in available, although Kommersant speculates
2024. that that Rusgazdobycha might be struggling
The Federal Antimonopoly Service (FAS) to finance the RUB1.5 trillion project on its
said on January 10 that the planned purchase own. Gazprom, on the other hand, is earning
would not restrict competition in the petro- record profits right now on the back of the
chemicals market. European gas crisis, creating extra funds for
Despite their partnership at the Baltic gas investments.
POLICY
Moldova faces hike in
Russian gas price
MOLDOVA MOLDOVA is paying $647 per 1,000 cubic and, as a result, guarantee their continuity.”
metres for Russian gas this month, under the One of the main conditions for the contract’s
Moldova entered into terms of a new supply contract reached in late continuation is the timely payment for debts,
a new contract for October that averted a severe energy crisis in the not only for current gas supplies but also historic
Russian gas in October. former Soviet state. ones. Gazprom estimates Moldovagaz’ total debt
This marks a 17.5% growth in the country’s at $433mn.
gas price month on month from $550 in Decem- Moldova is completely dependent on Russia
ber, state gas distributor Moldovagaz reported to for its gas needs. The country has tried to diver-
TASS. It attributed the rise to higher European sify by building a new pipeline to tap Romanian
prices. Under the terms of the company’s con- supplies, but though completed, the pipeline is
tract with Gazprom, the price partly depends not online. A stumbling block to diversification
on hub rates in Europe and partly on global oil efforts is Russia’s dominant role in the Moldovan
prices. energy sector. Not only does Gazprom provide
Gazprom threatened to cut gas supplies to all of the country’s gas, but it also has a majority
Moldova in late November unless it paid off its share in Moldovagaz, and Inter RAO, another
gas debts. Moldovagaz stressed on January 10 state-owned Russian company, operates a power
that the company would “make every possible plant in the breakaway region of Transnistria that
effort to timely and fully pay for current supplies provides the bulk of the country’s electricity.
Week 02 12•January•2022 www. NEWSBASE .com P9
