Page 5 - FSUOGM Week 46 2021

FSUOGM COMMENTARY FSUOGM

Vladimir Putin in August to send up to 10 bcm Russia argues that the standard unbundling
per year of gas to Europe via Nord Stream 2. requirements are not needed, as whether or
According to his proposal, Gazprom’s monopoly not Gazprom owns the pipeline has no bear-
would technically remain in force, with Rosneft ing on market competition. The minister did
using Gazprom as an agent for exporting its gas. not provide a timeframe for Nord Stream 2’s
Rosneft would only be able to sell gas to custom- certification.
ers that do not take supplies from Gazprom, he Shulginov also said the ministry was not con-
said, in order to limit competition. sidering the deregulation of domestic wholesale
Even so, Gazprom is likely to view Rosneft’s gas tariffs, and that gasification in Russia would
efforts as a serious threat. If Rosneft gains access be financed through Gazprom’s investment pro-
to Nord Stream 2 and the results prove econom- gramme. Funds will be raised from a special sur-
ically beneficial for Russia, the company might charge applied to gas distributors, he said. The
also get access to other export pipelines, includ- minister added that Gazprom was discussing
ing the Power of Siberia that runs to China. Ros- the renewal of 8 bcm per year of contracts with
neft has significant gas reserves in the Eastern Turkish customers that are due to expire at the
Siberia, but these assets are effectively stranded, end of this year.
as it cannot use Power of Siberia and there According to Shulginov, no final decision has
is insufficient local demand to warrant their been made on how gas from Gazprom’s Tambey
development. fields will be used, adding that the gas might need
At the same time, a media investigation last to be monetised faster than Gazprom suggests.
year indicated that Gazprom might struggle to Gazprom and its private Russian partner
deliver on its commitment to supply 38 bcm Rusgazdobycha announced on November 2
per year of gas to China. The probe by Lenta. they had registered a joint venture to develop
ru claimed that Gazprom had overestimated the Tambey fields, targeting first gas in 2006.
the output potential of the Chayandinskoye Gazprom’s plan is to route the gas to Europe via
and Kovyktinskoye fields that supply Power of pipeline, but Novatek has reportedly asked the
Siberia. government to grant it a role in the fields’ devel-
While analysts that NewsBase has spoken opment, arguing it would be more profitable to
with over the years have generally been dismiss- export the gas in LNG form.
ive of Russia granting Rosneft or Novatek access Shulginov said the ministry was against
to Gazprom’s export pipelines, sources close to imposing an export duty on LNG, as has been
Rosneft have said that the Russian company proposed by Gazprom, as this would hinder pro-
believes it is only a matter of time before Gaz- gress towards the company’s goal of producing
prom’s monopoly is brought to an end. 140mn tonnes per year (tpy) of LNG by 2035.
The government is also discussing tax support
Other matters for depleted and hard-to-recover gas fields in
Shulginov also touched on a number of other the Nadym-Pur-Taz region, he said, although
issues in his interview with Kommersant. no specific parameters have been agreed at this
The minister said he expected export gas point. All tax breaks necessary for Rosneft’s giant
prices to remain at attractive levels for some Vostok Oil project in the Russian Arctic have
time. This is in line with general expectations been granted.
that record high prices in Europe will persist Regulations to govern carbon capture and
into 2022. storage (CCS) development in Russia should be
The ministry also believes that Nord Stream ready within three years, the minister said, while
2 complies with Europe’s Third Energy Pack- hydrogen use is going to require a lot of techni-
age, despite the fact that Gazprom both owns cal studies, but Russia should nevertheless seek
the pipeline and the gas that flows through it. involvement in the market. ™

Week 46 17•November•2021 www. NEWSBASE .com P5