Page 9 - FSUOGM Week 34 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom reveals Nord Stream 2

delivery plans for 2021

EUROPE RUSSIA’S Gazprom has said it expects to export European gas prices have spiked in recent
as much as 5.6bn cubic metres of natural gas months, amid curtailed supply and a post-pan-
The company expects via Nord Stream 2 this year, the Moscow-based demic recovery in demand, as well as increased
to send 5.6 bcm of gas Kommersant newspaper reported on August storage needs ahead of the winter storage season.
via the pipeline this 19, noting that the pipeline should start up in On August 16 the September supply contract at
year. mid-October. the Dutch TTF hub reached over $586, but on
Using Russian pipelaying vessels, Gazprom news of Nord Stream 2’s imminent launch on
completed the first of Nord Stream 2’s two August 19, it had subsided to $507. But later in
strings in June, and is due to finish the second the day it returned to $527.
this month. While the pipeline’s full capacity is Storage levels will be the key decider in
55 bcm per year, Gazprom can only send half of how European gas prices fare in the upcoming
this amount of gas under the EU's Third Energy months. Operators estimate that Europe has 30
Package legislation, which was applied to the bcm less gas in storage now than a year earlier,
pipeline last year; that is unless the company can which could lead to scarcity in the event of a cold
get the pipeline’s operator, its wholly owned sub- winter.
sidiary Nord Stream 2 AG, certified as an inde- At the same time, there is a limit to how much
pendent operator by German regulators. gas Gazprom, by far Europe's biggest gas sup-
Gazprom started this process in July with the plier, can send. The company has complained
filing of an application, although it is uncertain for months that Ukraine is offering unfavourable
whether its bid will be successful. Poland and transit terms, limiting how much supply it can
other opponents of Nord Stream 2 are lobby- send via that route. Its production capacity is
ing for Germany to deny the request, although also constrained, followed a fire that broke out at
expectations are that Berlin will ensure that one of its key treatment plants in Western Sibe-
approval is granted, given its strong support for ria on August 5, disrupting gas delivery via the
the pipeline. Yamal-Europe pipeline. ™

US extends sanctions against

Nord Stream 2

EUROPE THE US has imposed new sanctions on the Rus- contract with Ukraine beyond 2024.
sian ships Ostap Sheremeta and Ivan Sidorenko, According to the latest statements by Putin,
The sanctions are likely their owner JSC Nobility, and insurer Konstanta; about 15 km of pipeline remain to be laid, while
to be futile at this stage. all are involved in the construction of the Nord pipeline-laying work in the Danish Economic
Stream 2 pipeline of state gas giant Gazprom, Zone has been completed, according to the
according to a US Treasury Department press reports by Interfax. Work in the German zone
release. should be finished by September 12.
The sanctions were announced as Russian "There were a lot of headlines over the week-
President Vladimir Putin and German Chan- end, but we do not see any as material for Gaz-
cellor Angela Merkel met in Moscow to discuss prom’s share price or for how the launch of Nord
a range of issues, covered by bne IntelliNews. In Stream 2 will go," Sova Capital commented on
the same week Gazprom has said it was confi- the latest US sanctions, while affirming a Buy call
dent it had exported as much as 5.6bn cubic on Gazprom's shares.
metres of natural gas via Nord Stream 2 already The analysts do not think the sanctions
this year. announced by the US should have any mean-
During their meeting, Merkel said that sanc- ingful impact on the pipeline’s completion or
tions on Russia would be implemented if the lat- even its certification, if possible. Sova continues
ter uses Nord Stream 2 as a weapon, while Putin to believe that the first gas could be pumped via
said that Europe must agree on gas purchases Nord Stream 2 in October, providing the current
before Russia considers extending the transport legal hurdles can be overcome.™

Week 34 25•August•2021 www. NEWSBASE .com P9