Page 12 - FSUOGM Week 33 2021

FSUOGM
RUSSIA
Rosneft plans to double hydrogen production
Russian oil major Rosneft plans to double the volume of hydrogen production, Vedomosti reports citing a company’s press service. The company plans to increase prouction from its current 650kt per year of hydrogen to 1.32mnt/a of hydrogen by 2023.
Russia’s flagship state owned oil company continues its push to reduce carbon emissions, with hydrogen production forming an important part of this plan.
Rosneft produces hydrogen for its own purposes in refining and, with regards to the expansion, it is not fully clear what technology is to be used and whether the hydrogen is going to be grey, blue or even green.
Nonetheless, this is a “good development” according to analysts at VTB Capital,
and is going to improve its longer term fundamentals. They take the view that this news is not immediately market moving for the company’s shares.
BNE INTELIINEWS, August 13, 2021
Gas prices hit new highs
on Russian supply and gas
storage problems
Gas “TTF Day Ahead” prices hit a historic high of over $550 per thousand cubic meters as export flows to Europe remain low after
a fire at Gazprom’s Urengoy Condensate Treatment Plant last week.
The last time prices were this high was during a spike in demand caused by the “Beast from the East” storm that saw temperatures around Europe plunge.
Current prices have been driven up by more mundane means. Flows on the German border at the Mallnow compressor station were down by half on August 11, Bloomberg reported. The volumes to Germany were down 44% (vs. pre-accident levels) to 0.84mmcm per hour, according to Gascade, meaning total flows of 30mmc per day.
Gazprom is taking gas from underground storage in Europe to make up for lower flows via the Yamal-Europe pipeline, according to an unnamed source quoted by Bloomberg. Gazprom has refused the option of sending more gas to Europe via Ukraine. While Gazprom has book all the available guarantee transit capacity offered by Gas Transmission System Operator of Ukraine (GTSOU) it
has refused to book the larger volumes of the “interruptible” capacity, as GTSOU has not offered the usual deep discounts on this capacity.
BNE INTELIINEWS, August 12, 2021
NEWS IN BRIEF EASTERN EUROPE
Fitch improves Ukrainian
Railways, Naftogaz rating
outlooks
Fitch Ratings reported on August 13 that
it had revised the outlook on Ukrainian Railway’s (RAILUA) Long-Term Issuer Default Ratings to ‘Positive’ from ‘Stable’, keeping the rating at ‘B’. The outlook revision for the company follows the corresponding revision of Ukraine’s sovereign outlook last week.
On August 11, Fitch Ratings also upgraded the rating outlook to ‘Positive’ (keeping the rating at ‘B’ level) for another state-controlled company, Naftogaz (NAFTO) for the same reasons.
The agency can further amend Ukrainian Railways’ and Naftogaz’ rating or outlook in case it revises Ukraine’s sovereign rating. A negative rating action could follow a possible “dilution of the linkage” of the companies to the government or a decrease of their standalone rating due to the weakening of their liquidity positions.
BNE INTELIINEWS, August 17, 2021
Rompetrol Rafinare to
resume operations by end-
September
Rompetrol Rafinare, Romania’s biggest refinery and a member of Kazakhstan’s KMG International Group, announced that it intends to restart production activities by the end of September, after operations were suspended following an accident on July 2.
The operations will be resumed by the end of September in accordance with the work schedule and delivery of equipment necessary for repairs and inspections of units affected by the July 2 incident, the company said. Production units will gradually enter the operational flow.
This is conditioned by the additional measures of verification and testing of the equipment, in accordance with the safety rules for their start-up and the safety measures
in operation, but also by the approval and certification of the installations by the competent authorities, the company said.
BNE INTELIINEWS, August 18, 2021
CENTRAL ASIA & SOUTHCAUCASUS
Azerbaijan exports 3 bcm of gas to Europe
Azerbaijan exported 3bn cubic metres (bcm) of natural gas worth $773.7mn to Europe in the
FSUOGM
first seven months of this year, according to the country’s State Customs Committee.
The launch of the Trans-Adriatic Pipeline (TAP) as the final section of the Southern Gas Corridor (SGC) at the end of last year opened up the EU gas market to Azerbaijan.
Of the total volume of exported natural gas, Italy accounted for 2.5bcm worth $658.3mn. Some 344 million cubic metres (mcm) valued at $96.1mn were exported to Greece and 134.9 mcm worth $19.3mn went to Bulgaria. During the reported period, Azerbaijan exported a total of 12 bcm of natural gas worth $2bn, with Turkey accounting for 6.7 bcm at a value of $974.4mn.
In the meantime, 2 bcm of natural gas worth $261.7mn were exported to Georgia and 132.8 mcm worth $5mn went to Iran.
BNE INTELIINEWS, August 18, 2021
Tengizchevroil reintroduces COVID-19 restrictions
Tengizchevroil, the Chevron-led operator
of the Tengiz oilfield development project
in Kazakhstan, has reintroduced COVID-19- related restrictions only days after it mobilised thousands of additional workers for major on-site maintenance works, Upstream reported on August
17. The company said the “remobilisation and [the] shift of non-essential personnel” were halted, starting from August 9, along with incoming short-term trips to the field in an attempt to slow the rate of new coronavirus infections. On August 1, Tengizchevroil stopped the operations of a major gas processing facility and sour gas reinjection compressors on the field for maintenance that was originally set to last until September 15.
These facilities are responsible for a major share of the field’s total oil production, anticipated to decline to 8.7mn barrels in August, compared to 17.2mn barrels in July.
BNE INTELIINEWS, August 18, 2021
Kyrgyzstan starts receiving Turkmen gas, power
Kyrgyz Minister of Economy and Finance Akylbek Japarov said that Kyrgyzstan has received its first gas and electricity from Turkmenistan following talks held between the leaders of the
two countries earlier in Turkmenistan, AKIpress reported on August 12.
Due to water shortages across Central Asia, which affects both Kyrgyzstan’s main Toktogul water reservoir and irrigation in neighbouring Kazakhstan and Uzbekistan, Kyrgyzstan has been forging deals with neighbours to receive electricity supplies in exchange for access to water.
Japarov also referred to Turkmenistan as “an alternative for trade with other countries bypassing Kazakhstan.”
BNE INTELIINEWS, August 13, 2021
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Week 33 18•August•2021