Page 17 - FSUOGM Week 25 2022

FSUOGM NEWS IN BRIEF FSUOGM

Russia’s FinMin prepares government could start using Brent price board of directors.
as the reference instead.
Machkevitch said: “Our environmental
to redraft the budget rule, barrel Urals price, while the average price strategy includes around 40 projects across
The 2022 budget is drafted at $62.2 per
the group, embracing the development and
Urals price of the main Russian exports blend stood at application of new technological solutions
$83.5 per barrel in January-May 2022.
such as the unique hybrid filter technology
Russia’s Finance Ministry plans to draft implemented at our plants together with
a new “budget rule” and switch the fiscal thyssenkrupp. At ERG, we are exploring to
governance on the new rule by 2025, while CPC warns of reduced oil replace fossil fuel oil in calcination kilns
leaving space for softer fiscal policies with green hydrogen, which can eliminate
in 2023-2024, Finance Minister Anton shipping speeds during 100% of direct greenhouse gas emissions
Siluanov said at the Saint Petersburg in this technological process. The group
International Economic Forum (SPIEF). June 15-25 citing Black Sea also plans to develop a portfolio of wind
As followed by bne IntelliNews, the and solar electric power plants with total
budget rule caps spending at the threshold checks for mines capacity of up to 6 GW.”
of a $42 per barrel of Urals blend oil, and The group’s goals include specific targets
is seen as one of the pillars of Russia's Caspian Pipeline Consortium (CPC) has for reducing particulate emissions, waste
prudent fiscal policy. Siluanov has warned in a statement of reduced shipping and water use. Specifically, the group hopes
consistently defended maintaining the speeds at its oil export terminal near the to reduce particulate emissions by two-
budget rule in place, but has allowed for Russian port of Novorossiysk on the Black fold, reduce water consumption by a third,
the revision of the reference oil price. Sea for the next few days. Two out of its and prevent over two megatonnes per
Siluanov pledged that the nature of three marine tanker loading buoys are set year of CO2 emissions through the use of
the budget rule will not change: it will to halt operations between June 15 and renewable energy sources. These activities
still be about determining the level of oil 25, while representatives of the Russian would cost around $1.6bn.
and gas revenues in the budget that can Emergency Situations Ministry conduct Kazakhstan plans to reduce national
be allocated for expenditures. But the rule surveys of the seabed around them, CPC GHG emissions by 1.5% a year between
will be based not only on the oil price, said. 2022 and 2025, achieve a 15% reduction by
but also on other parameters, such as A statement from the company noted 2030 and seek carbon neutrality in 2060.
production and export volumes. that “in the past, coastal sea areas [where
As followed by bne IntelliNews, as part the export terminal operates] have
of the sixth sanction package for Russia's repeatedly been a war zone”. The statement China-Central Asia pipeline
military invasion of Ukraine, EU leaders appeared to be very much a reference to
have agreed in principle to cut 90% of WWII. According to earlier preliminary ‘delivers 400bn cubic
Russian oil imports by the end of 2022. surveys, “hydroacoustic and magnetic
According to Siluanov, while previously targets have been identified that require metres of gas to China in 12
the cut-off oil price was the main condition additional examination and disposal”, CPC
for the formation of oil and gas revenues, added in the statement. years’
now that oil and gas supply volumes are Russia’s regulations required the
an important factor in addition to the oil elimination of “residual mine danger” prior The China-Central Asia gas pipeline—also
price, his ministry is looking to regulate to the start of operations that touch the known as the Turkmenistan-China gas
how the budget revenues depend not only seabed, CPC added. pipeline—has delivered more than 400bn
on the price but also on the "ability to The Russian invasion of Ukraine has cubic metres of natural gas to China over a
produce and export hydrocarbons". significantly raised risks of navigation in the period of more than 12 years, according to
As far as the spending is concerned, Black Sea, as it is believed that both sides PipeChina West Pipeline Company, as cited
the minister also wants to account for so- are laying sea mines. by APP on June 16.
called quasi-spending, such as subsidised Kazakhstan is much dependent on the The deliveries reportedly helped replace
budget loans, in the spending cap. CPC infrastructure for oil exports. the alternative use of 532mn tonnes of
Siluanov said that the government plans coal during the period, equivalent to the
to continue saving the excess oil and gas reduction of 8.8mn tonnes of harmful
revenues either in rubles or Chinese yuan. ERG announces plans to substances and 568mn tonnes of carbon
To remind, about 45% of liquid reserves dioxide emissions.
of the National Welfare Fund (NWF) are rely on green hydrogen With a total length of 1,833 kilometres
denominated in foreign currencies. and a designed-in annual gas transmission
Overall, this year the Finance Ministry along with wind and solar capacity of 60bn cubic metres , the pipeline
anticipates a budget deficit of 2%, was put into service in December 2009. Its
according to Siluanov, with RUB3 trillion plants to decarbonise highest daily transport volume has exceeded
to RUB4 trillion of spending to be financed 160mn cubic metres, the report said.
from the NWF. Kazakhstan-focused Eurasian Resources As China’s first transnational gas
In the meantime, a separate report Group (ERG) is exploring the potential pipeline, it stretches from the borders of
by Vedomosti cited unnamed sources use of green hydrogen in its calcination Turkmenistan—the main Central Asian
in claiming that the government could kilns along with the installation of a provider of gas to China—and Uzbekistan,
give up the target Urals blend oil price portfolio of wind and solar power plants passes through Uzbekistan and Kazakhstan
as the main indicator of macroeconomic with up to 6 GW of capacity as part of and links up with China’s West-to-East gas
forecasting. Due to the sanctions, the its decarbonisation plans, International pipeline in Horgos in northwest China’s
pricing has become very volatile and the Mining has reported, citing Alexander Xinjiang Uyghur Autonomous Region.
information hard to collect. Reportedly the Machkevitch, chairman of the company's

Week 25 22•June•2022 www. NEWSBASE .com P17