Page 17 - FSUOGM Week 13 2021

FSUOGM NEWS IN BRIEF FSUOGM

market unpredictability and said that RusGazDobycha will be responsible for running our business,” Majewski said.
Riyadh in its turn may prolong internal the construction of the technically affiliated “This will allow us to face the challenges
voluntary restrictions. gas chemical facility that will process ethane related to Poland’s energy transformation.
An OPEC plus joint ministerial generated by the complex and produce up Gas will play a leading role in it and PGNiG
monitoring committee is scheduled to to 3 million tons of various polyethylene is ready … to support the Polish economy
meet on Wednesday, and the entire alliance grades. in this,” the CEO added.
on Thursday to decide on the level of The company’s shares fell 1.57% to
production in May.. PLN5.66 on March 25 on the Warsaw Stock
Exchange. Year to date, PGNiG’s stock has
EASTERN EUROPE gained 2.99 while over the past 12 months,
RussNeft says swings to Poland's PGNiG sees results there was a surge of 89.12%. The company’s
market cap is PLN32.7bn.
RUB21.3bn IFRS net loss in surge in 2020 on one-off
20200 FPRI BMB Ukraine: Germany

Russian oil company RussNeft posted payment from Gazprom remains conflicted over
a net loss of RUB21.3bn in 2020 against Poland’s state-controlled oil and gas
a net profit of RUB21.854bn in 2019, as company PGNiG boasted a net profit of Nord Stream 2
calculated under International Financial PLN7.34bn, nearly a sixfold increase versus
Reporting Standards (IFRS), the company 2019, thanks to winning back money the During the 4th German-Ukrainian
said on March 26. company had overpaid to Russian supplier Business Forum last Friday, Chancellor
The net loss attributable to the Gazprom in 2014-2020, PGNiG said in a Angela Merkel emphasised Ukraine and
shareholders amounted to RUB16.955bn market filing on March 25. Germany’s long-standing partnership.
against a profit of RUB24.364bn in 2019. The Gazprom payback also clearly President Zelenskiy highlighted the special
Revenue decreased by 29% to showed in PGNiG’s operating profit, importance of co-operation with Germany
RUB133.196bn. which came in at PLN9.59bn compared to for Ukraine’s European integration.
PLN2.45bn a year earlier. Ebitda also more Meanwhile, on a working visit to Berlin,
than doubled to PLN13bn versus PLN5.5bn Ukrainian Prime Minister Denys Shmyhal
Gazprom, Linde in Ust-Luga a year earlier. stressed the geopolitical threat of Nord
"Undoubtedly, the most important event
Stream 2 (Interfax Ukraine).
complex deal of last year from the point of view of the crux of the relationship between Berlin
These two events nicely summarise the
company's results was the outcome of the
Russian giant Gazprom and the industrial arbitration proceedings with [Gazprom], and Kyiv. While Germany is the fourth-
gases major Linde have signed an agreement PGNiG’s CEO Pawel Majewski said in a largest foreign investor in Ukraine, Merkel’s
of intent for Ust-Liga gas processing statement. conservatives have continued to back the
complex cooperation. “Still, much more important is the Nord Stream 2 pipeline, which Kyiv has
The document outlines the main terms establishment of a new pricing formula always opposed.
and conditions of a prospective EPSS in the Yamal contract, as it will have a At the same time, the Biden
contract providing for engineering services, [positive] impact on the costs of obtaining administration has taken a strong stance
equipment supplies, and maintenance of gas gas in the quarters to com,” Majewski also against Nord Stream 2 this past week. Last
processing and off-site facilities, Gazprom said. Thursday, the US Department of State
informed in its statement. PGNiG’s sales revenues diminished announced that any entity involved in the
Gazprom and RusGazDobycha 6.7% to PLN39.2bn in 2020. Last year, the project should “immediately abandon work
are implementing the project near company sold some 3% more natural gas on the pipeline” and reiterated that it’s a
the settlement of Ust-Luga, with the than in 2019, reaching a total sales volume “bad deal” for Germany and Ukraine.
RusKhimAlyans as the project operator. of 31.64bn cubic metres (bcm). State Secretary Antony Blinken also
It is the anchor project of the major gas The company’s crude oil production emphasised Washington’s opposition on
processing and chemical cluster that is increased 8% in 2020 to 1.32mn tonnes, the pipeline during a private talk with
being established in the region. while natural gas production remained Germany’s foreign minister on Tuesday.
The complex will have a gas processing stable and amounted to approximately 4.52 And the next day he told his German
capacity of 45bn cubic meters per year and bcm. counterpart that there’s a real possibility of
will be capable of producing 13mn tonnes "In the coming years, an increase in the US sanctioning companies involved in
per year of LNG. demand for gas is expected, for example, the project (RFE/RL).
In addition to LNG, its commercial due to the commissioning of new gas-fired The way Ukrainian journalist Vitaly
products will include ethane fraction, units in CHP plants. Linking gas prices Portnikov sees it, Blinken’s statement
liquefied petroleum gases, and pentane- to stock exchange indices in Europe has indicates the US will not soften its attitude
hexane fraction. created completely new conditions for towards Nord Stream 2 for the sake of

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