Page 12 - FSUOGM Week 30 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom receives documents for Siemens

turbines, but still outstanding issues

RUSSIA RUSSIA’S Gazprom has received documen- “In addition,” the company said, “there are
tation from Siemens provided by authorities still open questions from Gazprom regarding
Gazprom claims that in Canada, relating to a turbine needed for the EU and UK sanctions, the resolution of which is
issues need to be Nord Stream 1 that had been sent off for repairs. important for the delivery of the engine to Rus-
resolved before the But the gas company has said there are still out- sia and the urgent overhaul of other gas turbine
turbine can be returned standing issues that need to be resolved for the engines for the Portovaya compressor station.”
to Russia. turbine’s return to Russia. “In these circumstances, Gazprom once again
Initially, Canadian sanctions against Russia asked Siemens for immediate support in provid-
prohibited the return of the turbine, but author- ing the necessary documents and clarifications
ities in Ottawa subsequently granted an exemp- to resolve the remaining open issues,” the com-
tion allowing its delivery back to Russia. Russian pany concluded.
business daily Kommersant reported on July 24 Furthermore, sources told Kommersant that
that Siemens had transferred an export licence it was unclear whether the reinstallation of the
issued by Canada to Gazprom relating to the turbine would result in an increase in gas flow
turbine. But in order for Siemens to ship the unit via Nord Stream, which is currently capped at
from Germany, where it has already arrived, to 30-40% of the pipeline’s capacity. What is more,
Russia, the documents must be adjusted further. Gazprom said in later message on July 25 that
“Gazprom has received documents from Sie- another turbine engine would be halted at the
mens from Canadian authorities,” the Russian Portovaya station because of its technical con-
company said in a notice on its Telegram chan- ditions, meaning that the amount of gas that the
nel. “Gazprom has studied these documents, but facility handles would be restricted 33 mcm per
must state that they do not remove the previously day, or 12 bcm per year, equivalent to 22% of
identified risks and raise additional questions.” Nord Stream’s capacity. ™

Russian gas revenues slump 40% m/m in

June amid Gazprom supply cuts

RUSSIA RUSSIA saw its revenues from natural gas Surgutneftegaz for details on oil and gas exports,
exports slump 40% month on month in June, but received no response.
Much of the attention highlighting the self-inflicting damage that Gaz- In dollar terms, gas export revenues fell to
has been on the prom’s recent cuts in gas supply to Europe are $11.1bn in June from $16.2bn in the previous
impact on Europe, but doing to Moscow’s coffers. month. Vedomosti notes that despite the month
Russia is also hurting The country’s gas export revenues in June on month slump, Russia’s revenues from gas
as a result of its own amounted to RUB633bn ($10.7bn), the Mos- sales abroad were still three times higher in June
actions. cow-based Vedomosti newspaper reported this than in the same month last year, highlighting
week, citing federal tax data. In May, those reve- the impact that soaring European gas prices are
nues came to more than RUB1 trillion. Oil sales having, despite the cut in volumes.
were also down, by 10%, to RUB605bn in June. In volume terms, Russia exported 10.9 bcm in
Much of the international attention on Rus- June, down from 12 bcm in the previous month.
sian cuts to gas supply has centred on the impact In contrast, it shipped 15.7 bcm in May and in
this is having on European energy markets, June in 2021.
which is certainly substantial, with spot prices Russia began cutting off gas customers in
having spiked at $2,200 per 1,000 cubic metres late April after some refused to comply with a
on July 27 for the first time in history. But Gaz- Kremlin decree requiring payment in rubles.
prom’s actions have also caused significant harm Since June, it has also been curtailing supply via
to the Russian budget. the Nord Stream pipeline, citing Siemens’ delay
Exactly how much harm it has caused is in returning a delay, even though the company
impossible to say, as the government has not could have made up for these constraints by
been disclosing budget details since the invasion sending more gas via Ukraine and other routes.
of Ukraine began. Vedomosti also reached out The pipeline is currently operating at only a fifth
to Gazprom, Rosneft, Lukoil, Gazprom Neft and of its 55 bcm per year capacity. ™

P12 www. NEWSBASE .com Week 30 28•July•2022