Page 8 - EurOil Week 27 2022

EurOil POLICY EurOil

Russia mulls rubles-for-LNG scheme

RUSSIA 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
The system has already Europe to LNG as well, Interfax reported on July payments to one account, where Gazprombank
been applied to pipeline 4, although the Kremlin has said no decision on moves them into a ruble-denominated account,
gas sales. 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. ™

Strike puts 13% of Norwegian gas

supply in jeopardy

NORWAY A strike by workers off the coast of Norway this The strike comes as European markets are
week could shut in around 13% of the country’s already grappling with supply constraints as a
In Norway, strikes are natural gas production, industry lobby group result of Gazprom cutting off supply to some
an annual occurance. Norwegian Oil and Gas (NOG) has warned. buyers and restricting flow via the Nord Stream
The Lederne trade union, representing 15% 1, citing technical difficulties. The front-month
of Norwegian offshore workers, announced on gas price at the Dutch TTF hub closed on July 4
June 30 that its members had rejected a wage at €167.3 ($174)/MWh, up 13% year on year. The
settlement deal negotiated by union bosses and contract has been rose steadily throughout last
employers. As a result, 74 offshore workers at week, from €129.3/MWh on June 24.
Equinor’s Gudrun, Oseberg South and Oseberg There had been hopes that a strike off Nor-
East platforms are due to stage a walkout from way could have been avoided after Norway’s
midnight local time on July 5. Industrial action other two offshore unions, Safe and Industri
will be extended to another 117 members at the Energi, negotiated collective pay settlements
company’s Heidrun, Aasta, Hansteen and Kris- last month covering more than 7,000 offshore
tin platforms on July 6. oil and gas workers, following annual wage
Production from all six fields will be closed talks with employers. But over two-thirds of
as a result of the strike, as well as output at the Lederne’s members subsequently rejected the
Tyrihans field, which is tied back to the Kristin agreement.
platform, according to NOG. These closures will Wage talks take place between unions and
result in the loss of 292,000 barrels of oil equiva- employers off Norway every year, putting the
lent per day (boepd), or 41.3 mcm per day, NOG country’s oil and gas supply at regular risk of dis-
estimates. ruptions because of strikes. ™

P8 www. NEWSBASE .com Week 27 08•July•2022