Page 15 - EurOil Week 08 2021

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so far, Transport Minister Blagoj Bocvarski to below average, and a full 27 bn cubic PLN7.3bn – a five-fold increase versus
said, according to a government statement, metres below that seen this time last year.” 2019.
while inspecting works on the section. The outlook for 2021 is positive.
Bocvarski underlined the great PGNiG plans to produce 60mn cubic
importance of the country’s gasification Croatia’s INA turns to metres of natural gas from six new wells
in terms of economic recovery, reduction in the south-eastern part of the country,
of air pollution and cheaper energy for €145mn net loss in 2020 the company said on February 11. The
citizens and companies. company also plans to produce 1bn cubic
“We use all technical and human Croatian oil and gas company INA reported a metres of gas from deposits it operates
resources to complete the gas pipeline consolidated net loss of HRK1.1bn (€145mn) in the Norwegian Sea, as well as 300,000
sections as soon as possible and to start in 2020, reversing a net profit of HRK486mn cubic metres from Pakistan.
new gasification projects throughout the a year earlier. Prices for gas have also surged in the
country,” Bocvarski said. Earnings before interest, taxes, first month of this year thanks to a cold
Director of state-run National Energy depreciation and amortisation (Ebitda) snap that has blanketed much of Europe.
Resources company, Bajram Rexhepi, said excluding special items shrank 65% y/y to Russia’s Gazprom exports’ price forecast
that this year North Macedonia will also HRK991mn. for 2021 was raised to over $200 per mcm
launch a procedure for the construction The company’s net sales fell 35% y/y to from the $170/mcm budgeted only in
of an interconnector with Greece as well HRK14.8bn, dragged down by the decline in December, bne IntelliNews reported.
as draft feasibility studies for connection oil and gas prices, the mobility restrictions Gas exports are on the rise across
to the interconnectors with Kosovo and elated to coronavirus (COVID-19) pandemic Europe despite concerns over Nord Stream
Serbia.. and the falling economic activity, the company 2. Italian purchases have also grown
noted in its consolidated financial report. 112.7% so far in 2021, with Poland – one
INA reported that product demand in 2020 of Moscow’s harshest critics of the new
Europe is warming, but still dropped by between 30% and 50% y/y. pipeline – also increasing its imports of gas
from Russia by 63.7%..
Capital expenditure decreased 40% y/y to
a cold winter in Russia, gas HRK1.3bn.
In January, INA said it plans to add
prices falling renewable energy projects to its portfolio and Munich Re and others exit
is specifically considering offshore wind and
Europe’s weather is warming to late-spring solar energy developments in the country. The Nord Stream 2
levels from deep cold in February. Meanwhile, company intends to start with solar energy
Russia remains locked in a cold winter. This and the installation of pilot solar projects at its In the latest round of exoduses from the
has led to lower prices for European gas and own industrial facilities. sanctioned Russian project Nord Stream 2,
a decrease in Russian gas transits through German insurer Munich Re Syndicate (a
Ukraine. subsidiary of Munich Re MUVGn.DE) said it
European prices are falling from high PGNiG reports an earnings would no longer insure the pipeline, Reuters
levels even as Russian gas is being held reported on February 23.
back to meet domestic demand. As a result jump of nearly half in sAhead of the Munich RE
of the combination of warm weather in announcement, spokesman of the US
Europe and cold weather in Russia, two Q4, beating analysts Department of State Ned Price claimed
things have happened. that at least 15 companies are set to quit
First, European gas prices have fallen, expectations Nord Stream 2, while Der Tagesspiegel
to c$200 per thousand cubic metres ($5.7 claimed that 18 companies are pulling out,
per thousand cubic feet) from January’s Poland’s listed oil and gas exploration and Bilfinger SE among them.
average c$260/kcm ($7.4/mcf). Second, the production company PGNiG reported a 5% Bilfinger SE confirmed to Russian RBC
transit of Russian gas through Ukraine has fall in revenues year on year to PLN11.77bn business portal that it does not participate
fallen to c70mn cubic metres per day in ($3.17bn) and PLN1.3bn in net profits in the in Nord Stream 2 at the moment, while
recent days from an average of c120 mcm fourth quarter, the newspaper Puls Biznesu noting a relatively small amount of services
per day in the first half of February. reported on February 18. provided (€15mn versus €3.5bn annual
“The European gas market is Revenues fell due to the negative impact turnover).
normalising, but Gazprom’s position still on demand caused by the coronavirus As followed by bne IntelliNews, the
much improved,” BCS Global Markets (COVID-19) pandemic, the company said. construction of the pipeline was halted for
said in a note. “This brings to a close a However, the company’s EBITDA was up a year due to sanctions, but Russian gas
very strong run of European gas prices by a whopping 47% y/y to PLN2.32bn giant Gazprom is determined to complete
since mid-December, as cold weather in ($624mn) despite the negative impact of both lines of Nord Stream by the end of
first Asia, then Europe, tightened global the crisis. April 2021.
gas markets, rapidly depleted European These results surprised analysts, who Latest reports claimed that Germany
storage and drove up European gas were expecting EBITDA to increase only is seeking to make a deal with the US for
prices. Regardless of the quick warm- 5% but net profit to rise by 30%, Puls the completion of Russian Nord Stream 2
up in Europe, the European gas market Biznesu reports. pipeline via the Baltic Sea and the relief of
is in much better shape than it was just Throughout 2020, revenues fell 7% consistent sanction pressure.
three months ago, mostly due to a swift to PLN39.2bn, EBITDA increased 136%
drawdown of gas storage from overly full to PLN13bn and the net profit reached

Week 08 25•February•2021 www. NEWSBASE .com P15