Page 10 - FSUOGM Week 29 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom defaults on five LNG

deliveries to India

INDIA RUSSIAN gas monopoly Gazprom has defaulted be, although it has promised to supply LNG on a
on the delivery of five LNG cargoes to India since ‘best endeavour’ basis. Meanwhile, GAIL is look-
The Russian firm was June, according to the Press Trust of India. Gaz- ing for alternative sources of LNG in the Mid-
unable to source the prom has been unable to deliver the cargoes dle East and the US. It is also looking into legal
LNG. citing difficulty in sourcing the LNG due to recourse, but hopes to resolve the matter through
international sanctions resulting from Russia’s diplomacy, Indian media reported.
invasion of Ukraine. GAIL’s agreement calls for Gazprom to
The inability to source LNG is apparently a deliver 2 million tons in 2021, and increase this
blowback from Russia’s own sanctions imposed to 2.5 million tons during 2022. A full volume
against companies and countries that have of 2.85 million tons should reached in 2023 and
adopted US and European sanctions against continue for the life of the contract. Shipments
Moscow, among them the German unit of Gaz- during 2022 were expected to number around 40
prom and Polish shareholders in the Yamal gas and reach 46 during 2023.
pipeline to Europe. The Russian counter-sanc- Russia made the move to impose its own
tions include companies that Gazprom uses to sanctions to prevent its gas reaching some West-
supply LNG to India. ern customers that had imposed sanctions.
The deliveries were scheduled to be received Moscow sanctioned 31 companies, among them
by GAIL, India’s largest gas company, which Gazprom Germania, Polish pipeline company
has a long-term contract with Singapore-based EuRoPol Gaz, and Gazprom subsidiaries in
Gazprom Marketing and Trading Singapore Austria, Belgium, Bulgaria, Czechia, France,
to supply 2.85 million tons annually. However, Germany, Italy, Hungary, Poland, Romania, Slo-
Gazprom Singapore is operated by Gazprom vakia, Switzerland, UK, US and Singapore.
Germania. As such, it no longer has access to India itself has refused to impose Western-led
Russian gas. sanctions against Russia and continues to pur-
The contract stipulates that the cargoes will chase large quantities of Russian crude oil at
be fulfilled in the future, but as yet, Gazprom discounted prices, much to the chagrin of New
has not informed GAIL as to when that might Delhi’s US and European allies. ™

POLICY
Kazakhstan downsizes oil and gas auction

KAZAKHSTAN KAZAKHSTAN has downsized the oil and gas Oil from the Mangystau region is shipped
licensing offering, its energy ministry said last to international markets via the Atyrau-Samara
Most of the licences week, without providing an explanation. pipeline that runs to Russia, although Kazakh-
that were offered The government had intended to offer up stan is looking to reduce its reliance on Russia as
are located in the rights to 40 blocks in an online auction on July a transit route in light of recent disruptions via
Mangystau region. 22, but has reduced the number to 17. Launched the Caspian Pipeline Consortium (CPC). The
in April, it is the latest in a series of competitions government has ordered studies on a potential
for subsoil rights that Astana has held, although expansion of the port of Aktau in the Mangystau
past auctions mostly secured interest from only region, which would enable more Kazakh oil to
domestic rather than international investors. be shipped across the Caspian Sea to Azerbaijan.
Nine of the remaining blocks in the offering From there, it can be shipped via the Baku-Tbili-
are situated in Kazakhstan’s western Mangystau si-Ceyhan (BTC) pipeline to the Mediterranean
region, an oil production area since the Soviet era Sea for export.
with extensive infrastructure, but where many There is more than enough room for BTC to
fields are now mature and the odds of making handle this oil, as it was built when Azerbaijan’s
large new discoveries are considered to be slim. flagship Azeri-Chirag-Gunashli (ACG) oil pro-
Other blocks are due to be auctioned off ject was producing at a significantly higher rate,
in July, and are situated in the Karaganda and and it is now running at full capacity. It already
Atyrau regions, though none of those have con- handles some oil flow from the Chevron-led
firmed hydrocarbon resources. Tengiz oilfield in Kazakhstan. ™

P10 www. NEWSBASE .com Week 29 20•July•2022