Page 13 - Euroil Week 18 2020
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EurOil POLICY EurOil
Gazprom complies with ruling on Polish gas prices
POLAND
Gazprom has said it will correct previous invoices.
RUSSIA’S Gazprom has cut the price of gas sup- plies to Poland’s PGNiG, as required under a recent arbitration ruling.
The arbitration institute of the Stockholm Chamber of Commerce ruled in late March that Gazprom was overcharging PGNiG, and ordered the Russian supplier to adjust its pric- ing formula to take into account market rates in Europe and pay $1.5bn in compensation.
Gazprom initially did not comply with the award but continued to invoice PGNiG accord- ing to the old formula. Warsaw later suggested it might seek the freezing of Gazprom’s assets in Europe.
In a statement on April 29, PGNiG said Gaz- prom had issued a declaration stating it would adopt the new pricing system, and would cor- rect invoices previously sent for supplies in March and April. It did not refer to the $1.5bn in past overpayments, but said Gazprom’s dec- laration met its “expectations as to the full and
immediate implementation of the arbitration tribunal’s ruling.”
PGNiG, which accounts for almost all Poland’s gas imports, took 9.73bn cubic metres in Russian supplies last year, down from 9.86 bcm in 2018. This represents just under two- thirds of total Polish gas consumption. Poland has been increasing purchases from LNG sup- pliers over recent years, and plans to take piped Norwegian gas via a new pipeline in 2022. Its long-term contract with Gazprom is due to expire at the end of that year.
PGNiG reported on April 28 that it had received another batch of US LNG from Texan exporter Cheniere Energy. The shipment, received at Poland’s sole LNG import terminal, is equal to 95mn cubic metres of regasified gas. PGNiG began taking spot cargoes of US LNG and initiated contractual supplies last year. Deliveries are expected to reach 1.95 bcm in 2023.
Greece passes bill allowing oil, gas drilling in protected areas
GREECE
Environmentalists strongly oppose the bill.
GREECE’S parliament approved an environ- mental bill on May 5 that will open the door to oil and gas exploration drilling in protected areas.
Lawmakers voted 158-56 in favour of the bill, with 214 of Parliament’s 300 members partici- pating. Greece’s centre-right government says the legislation will help protect the environment while also ensuring sustainable development and enabling Greece to end its dependency on coal-fired power generation.
“The new environmental regulations finally set clear rules for [environmental] protection, but at the same time they are drivers behind a quick and, above all, sustainable development,” Prime Minister Kyriakos Mitsotakis said in a speech. They put an end to investment “plans being stuck in the drawer.”
The criticism levied against the government is unjustified, he said.
The bill generally aims to slash red tape and modernise the country’s environmental leg- islation, removing obstacles to investment. It changes regulations on land use, environmen- tal licensing and the management of protected areas. In particular, it allows some oil and gas
exploration to take place in these areas, reducing the ability of local authorities to block drilling.
The legislation also facilitates investment in renewables, as part of the government’s plan to end the use of coal altogether by 2028.
“Our goal is to go down from the eight years needed today to issue environmental permits to 150 days, because we cannot just stay inactive or be the country that investors are thinking of as never to mess with, especially after the corona- virus [COVID-19] crisis,” Greek Environment Minister Kostis Hatzidakis explained.
However, environmentalists strongly oppose the bill, with Greenpeace and the World Wildlife Fund stating on the eve of the vote that they had collected 30,000 signatures in an online petition against the legislation.
“Beyond the drilling, this legislation is deeply problematic in many areas, as has already been established by dozens of agencies and organisa- tions,” WWF Greece head Demetris Karavellas saidinastatementonMay4.“Agovernmentthat respected scientists’ positions on the issue of the coronavirus now appears to ignore them in this crucial legislation.”
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