Page 11 - FSUOGM Week 33

FSUOGM PIPELINES & TRANSPORT FSUOGM

Uniper sees growing risks to Nord Stream 2

RUSSIA UNIPER, one of the major foreign partners of The companies in the consortium financ-
the Nord Stream 2 pipeline of Russian natural ing the pipeline include German Uniper and
gas giant Gazprom, sees increased risks to the Wintershall, Austrian OMV, French Engie and
pipeline and even a possibility that it will not be Anglo-Dutch Royal Dutch Shell.
completed, the CEO of Uniper, Andreas Schier- BCS Global Markets analysts continue to
enbeck, told the press on August 11. believe that Nord Stream 2 will get finished, but
As reported by bne IntelliNews, as of August note on August 12 that “the risk of non-comple-
3, Gazprom can resume its construction in Dan- tion is there,” and view the statements by Uniper
ish waters, which is the last remaining part of the CEO as negative for the sentiment on Gazprom.
pipeline to be built. Although reportedly there is “US politicians – including President [Don-
uncertainty on which vessels will complete the ald] Trump and a number of prominent Sena-
pipeline, and the US sanction pressure remains tors – are pushing heavily against the completion
in place, the pipeline is anticipated to be com- of Nord Stream 2 on grounds it will decrease
pleted, according to the analysts. Europe’s energy security,” BCS GM reminds.
In a further escalation last week the US law- But with only about 160 km of pipeline yet
makers have threatened “crushing legal and eco- to be laid, the actual construction required is
nomic sanctions” against a small German port if relatively small, and BCS GM thinks it is highly
it assists Russian vessels in completing the Nord likely that “a way to provide political cover to
Stream 2 pipeline. companies participating in the construction
“We can’t exclude [the possibility of] such and operation of Nord Stream 2 will be found
an extreme scenario. We can’t exclude that we relative soon.”
could have further delays and that the pipeline Nord Stream 2 is now anticipated to come on
might not be finished,” Schierenbeck said, as stream in early 2021, Russian officials have said,
cited by the Financial Times. “We are worried more than a year behind schedule. It will flow up
about these sanctions, and we think it [the pipe- to 55bn cubic metres of gas to Germany, helping
line] is important for the European gas supply Gazprom reduce gas flows via Ukraine.
nevertheless.” As followed by bne IntelliNews, the physical
The CEO of the German utility major also completion of the pipeline is only one challenge
stated that Nord Stream 2 risk “qualifies as a that Gazprom is facing. The EU has legislated to
major individual risk” for the company, poten- apply its third energy package to the pipeline,
tially requiring it to book an impairment on the meaning Gazprom may have to divest the pipe-
loans extended to the project. line and offer its flow capacity to third parties.™

Rosneft complains over

Gazprom pipeline access

RUSSIA RUSSIA’S largest oil company Rosneft has com- bring it to over 300, to compete with Gaz-
plained to the government about its impaired prom’s 335 stations that captured 70% of the
access to gas filling stations and access to Gas domestic market with 779mn cubic metres
Transportation System (GTS) of state natural of gas sold in 2019.
gas giant Gazprom, Kommersant daily and RBC The government this year granted
business portal reported on August 18 citing a RUB19bn ($260mn) to support the automo-
letter from Rosneft. tive gas fuel industry and aims to grow the
Most recently Rosneft’s management reiter- market to 2.7bn cubic metres annually by 2015
ated that the development of the gas segment with 1,300 filling stations.
remains one of its top priorities. The oil major Even with the ambitious development
is Russia’s third-largest gas producer after Gaz- plans for the sector, currently gas filling sta-
prom and Novatek. tions account for only 0.03% of the total
Reportedly, Rosneft argues that lack of access natural gas produced by Rosneft (including
to GTS is the main obstacle to the development associated gas), VTB Capital (VTBC) reminds
of its retail automobile gas business, which cur- on August 18.
rently has 13 filling stations. “For this reason, we treat the developments
Previously, in 2016 Rosneft planned related to this as not material for the company,”
to operate 60 such stations by 2020, and the investment bank commented.™

Week 33 19•August•2020 www. NEWSBASE .com P11