Page 19 - FSUOGM Week 39

FSUOGM NEWS IN BRIEF FSUOGM

Gazprom to comply with measures in small towns, which will they stocked up in April and May when prices
fell," the report quoted another source as
significantly reduce the burden on state and
dividend policy despite local budgets by saving energy costs. saying.
Energy efficiency measures will be

market conditions implemented in kindergartens, schools,
hospitals, and administrative, social and
Russian gas giant Gazprom will be able to cultural buildings. SOCAR becomes top gas
adhere to its dividend policy in the next By another resolution, the Cabinet of supplier to Turkey
few years regardless of the market and price Ministers formed a personal composition of
conditions, head of the investor relations the delegation, consisting of representatives Azerbaijan's state-owned company SOCAR
department Anton Dyomchenko said on of the Ministry of Regional Development, has become the main gas supplier to Turkey, its
September 29. the Ministry of Finance, the Ministry of president has announced.
“There are certain limits of the share of Economy, the Ministry of Foreign Affairs "If a year ago Azerbaijani gas occupied
adjusted net profit for annual payments and the Ministry of Justice, and a directive to the 4th-5th place in the Turkish market,
in the dividend policy. And there is a participate in negotiations with the EIB for now we are in the first place, which is very
mechanism for extraordinary situations, like the further signing of a financial agreement important for us and for Turkey, because gas
we have in 2020, or for any increase of the and the implementation of Ukraine's Public ensures the energy security of each country.
debt burden, which is to balance dividend Buildings Energy Efficiency project. 20 years ago, our country did not even
payments and sustainable development,” he According to Minister for Communities think about its role as a major gas exporter
said. and Territories Development Oleksiy to one of the largest gas markets in Europe.
“The dividend policy allows us to say Chernyshov, the agreement with the The situation in Azerbaijan has changed
that we can adhere to it in the next few years European Investment Bank on a long- dramatically in recent decades. Azerbaijan's
regardless of the market environment. Our term low-interest loan aimed at improving role has grown all over the world, and not
dividend policy envisages strict compliance energy efficiency in social buildings creates only in the oil sector," Ilham Aliyev said.
with the obligations at any price conditions.” a solid foundation for the implementation The first step towards establishing the
Dyomchenko also said that Gazprom of energy efficiency reform and provides a company as one of the world's gas centers
hopes that its debt burden will return to a financial opportunity for the development of was the signing of the agreement on the
comfortable level in 2021. municipal energy-efficient space. development of the Azeri-Chirag-Guneshli
“We expect the debt burden at a fairly field on September 20 1994. This agreement,
high level in 2020, but hope that the net known as the "deal of the century", became
debt to earnings before interest, taxes, the basis of Heydar Aliyev's oil and gas
depreciation, and amortization (EBITDA) strategy. Revenue from this contract
ratio will return to a level that is comfortable CENTRAL ASIA & SOUTH exceeded $150bn.
for us in 2021,” he said. According to the company's most recent
The executive said that Gazprom plans to CAUCASUS audit report, the SOCAR's turnover in
issue ruble-denominated perpetual bonds. 2019 was $50bn, with 93% of this turnover
He also said that the company does not Kazakh oil shipments to coming from operations in the foreign
intend to sell its stakes in independent markets.
gas producer Novatek, oil company China plunge sharply in SOCAR, in addition to oil and gas
Gazprom Neft or other companies to boost activities, is actively working in the
capitalisation. July and Aug chemical complex, becoming the largest
exporter in the non-oil sector. This is
Kazakhstan cut its oil shipments to China to mainly facilitated by the activities of
12,100 tonnes in July and 10,000 tonnes in SOCAR Methanol and SOCAR Polymer.
EASTERN EUROPE August, down from 98,865 tonnes in June. Turkey occupies a special place in
The decline was driven by Kazakhstan’s SOCAR's investment projects, where the
Ukraine to attract €300mn output reduction under the global company bought a large petrochemical
producers' OPEC+ pact coupled with the
complex, Petkim, built a STAR refinery,
from EIB to improve energy low profitability of oil exports to China and is developing a transport and logistics
compared with westward shipments through
direction.
efficiency Russia, four industry sources told Reuters. company with a small global production
In 1990, SOCAR was an exclusively Azeri
Moreover, a recovery in domestic demand
The Cabinet of Ministers of Ukraine has for fuel, following the lifting of coronavirus level, but 20 years later it became a
adopted two resolutions to attract a €300mn (COVID-19) lockdowns, further reduced the respected player in the global oil market.
loan from the European Investment Bank amount of crude available for export. The company has a large number of gas
(EIB) for energy efficiency, the Ukrainian Traders said the Chinese route was stations in Ukraine, Georgia, Romania, and
Communities and Territories Development profitable in the second quarter when demand Switzerland.
Ministry announced on September 24. and prices were on the rise in China.
The implementation of the resolution "Exports to China are $5-25 less profitable
"On attracting a loan from the European per tonne [looking at August] than through
Investment Bank for the implementation of [the Russian port of] Ust-Luga," one source
Ukraine's Public Buildings Energy Efficiency told Reuters.
project" will allow for energy efficiency "All the storage facilities in China are full,

Week 39 30•September•2020 www. NEWSBASE .com P19