Page 12 - GLNG Week 27 2022

GLNG EUROPE GLNG

Russia mulls rubles-

for-LNG scheme

POLICY RUSSIA’S Gazprom is considering expanding special accounts in Gazprombank. The buyers
its rubles-for-gas scheme for pipeline sales to must transfer US dollar and euro-denominated
Europe to LNG as well, Interfax reported on July payments to one account, where Gazprombank
4, although the Kremlin has said no decision on moves them into a ruble-denominated account,
the matter has been taken yet. and sends them to Gazprom.
Kirill Polous, a deputy department head at The majority of Gazprom’s customers in
Gazprom, was quoted as saying by Interfax that Europe complied with the decree, and those that
Gazprom had made the proposal, citing foreign refused, including buyers in Bulgaria, Denmark,
exchange competition between pipeline gas sold Finland, Germany, the Netherlands and Poland,
in rubles and LNG that is sold in US dollars. had their supply cut off.
“Currently no decisions have been taken Asked by Reuters this week, buyers of Russian
in this regard and there are not any prepared LNG in Japan and Korea confirmed that they
orders,” Kremlin spokesperson Dmitry Peskov had not yet received a request from Gazprom
told reporters. for payment in rubles. The two countries have
Asked whether an LNG-for-rubles scheme supported Western sanctions against Russia and
might cover all LNG from Russia, which comes condemned its invasion of Ukraine.
mainly from Gazprom’s Sakhalin-2 project and By requiring buyers to make payments into
the Novatek-led Yamal LNG plant, Peskov redi- one Russian bank and not into accounts at Euro-
rected questions to Gazprom. pean banks, Russia is effectively preventing
At the end of March Russian President Western countries from appropriating funds in
Vladimir Putin issued a decree requiring all buy- order to deprive the Kremlin from financing for
ers of pipeline gas in “unfriendly countries” that its war, and for potential use in reconstructing
have supported sanctions against Russia to set up Ukraine.™

TotalEnergies sheds stake in Russian oilfield

POLICY TOTALENERGIES has sold its 20% stake in the operatorship of Kharyaga to Zarubezhneft in
Kharyaga oilfield in Russia’s northern Nenets 2016, as well as a further 20% interest. The trans-
region, marking the first stage of what it said in action is subject to approval by Russian author-
late March would be a “gradual” suspension of ities, TotalEnergies said, without disclosing the
its activities in the country, over its invasion of price tag.
Ukraine. In its late March announcement, TotalEner-
The French major announced in late March gies said it was ceasing all oil trade from Russia.
that it would only “gradually” suspend its Rus- It also said it would immediately cease all new
sian activities, stopping short of the promises investments in Russia, although it is unclear how
made by the likes of BP, ExxonMobil and Shell, this will affect Novatek’s $21bn Arctic LNG-2
which said they would seek a full withdrawal project, which is under construction, with its first
from the country as soon as possible. terminal due online in 2023. The company has a
However, those same companies’ withdrawal 10% interest in the development.
plans have stalled, owing to obstacles posed TotalEnergies has also been silent on its future
by Russian authorities, and, given the circum- role in the operational Yamal LNG plant, also
stances, their difficulty in fetching a sufficient operated by Novatek. But in its March announce-
price for their assets. Another consideration is ment, the company said it would continue trad-
the criticism that they would face in selling their ing Russian gas and would abide by its long-term
assets to a state-owned Russian company, as this contracts for supplies from Yamal LNG “as long
would mean handing over to the Kremlin more as European governments consider that Russian
financial clout to fund its war in Ukraine. gas is necessary.”
In a statement on July 6, TotalEnergies said “Contrary to oil, it is apparent that Europe’s
it was transferring its interest in the Kharyaga gas logistics capacities make it difficult to refrain
region to Zarubezhneft, the project’s operator from importing Russian gas in the next two to
and an entity closely aligned with the Russian three years without impacting the continent’s
government. The French major handed other energy supply,” it said.™

P12 www. NEWSBASE .com Week 27 08•July•2022