Page 16 - EurOil Week 39 2021

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Kyiv disappointed with September 24 with Slovak-based NAFTA, at a meeting with a delegation of the Austrian
group OMV led by the new CEO Alfred
Eustream and German RWE Supply &
Budapest’s decision to sign Trading to explore the potential development Stern on September 16, that the completion
of ExxonMobil-Romgaz negotiations creates
of state-of the art blue hydrogen production
contract with Russia for facilities in eastern Slovakia which can “encouraging premises” for the Neptun Deep
project, the largest natural gas exploitation
be transmitted through the Eustream gas
supply of gas bypassing pipeline to Germany. project in the Black Sea, to advance.
“To potentially off-take low-carbon
Ukraine hydrogen produced in Slovakia and import
it to Germany via repurposed pipeline
Ukraine is surprised and disappointed with infrastructure would address this demand Turkey’s natural gas and
Hungary’s decision to sign a new long-term and at the same time support establishing power prices ‘expected
contract with Russia’s state energy company the infrastructure required for future
Gazprom in Budapest on September 27, imports of green hydrogen from Eastern to rise by up to 15% amid
2021, regarding gas supply to Hungary Europe, including Ukraine,” said CCO of
bypassing Ukraine, the Ukrainian Foreign RWE Supply & Trading GmbH Ulf Kerstin, spiking global prices’
Ministry said in a statement. adding that they expect a significant need for
“We view this as nothing but a political, low-carbon hydrogen imports to Germany Turkey’s natural gas and power prices
economically unfounded decision, which in order to meet domestic demand already are reportedly expected to rise by up to
has been made [to benefit the Kremlin] in 2030. 15% next month, with spiking global
and to the detriment of national interests of According to Rastislav Nukovic, CEO of prices pushing up energy import bills for
Ukraine and Ukrainian-Hungarian relations, Eustream, “the aim is to be technologically a country that has scarce hydrocarbon
in violation of the principles of the Treaty of ready to accept hydrogen blends of up to resources of its own and is increasingly
Neighbourliness and Co-operation between 5% into our system and in the future we are dependent on gas plants to cover for
Ukraine and the Hungarian Republic dated planning to dedicate one of our pipelines to hydro-generation shortfalls occurring
December 6, 1991,” the statement said. pure hydrogen transmission by 2023.” amid prolonged drought conditions.
The Ukrainian Foreign Ministry has “The co-operation with RWE in the field Reuters on September 23 referred to
initiated a delay of the next meeting of blue hydrogen production in Slovakia is an four industry sources as anticipating the
of the Joint Ukrainian-Hungarian exciting opportunity that aims to accelerate price hike.
Intergovernmental Economic Co-operation not only our ambitions but also the hydrogen If costlier energy prices add to Turkey’s
co-chaired by the two foreign ministers, roll-out in the EU,” Nukovic added. inflation problem—officially annual
which was planned for September 29-30. “Our long-term storage experience inflation stands at 19.25% although
“Earlier today, the Ukrainian Foreign and our strategic location allows us to independent research conducted by
Ministry initiated a delay of the Commission substantially contribute to the co-operation Istanbul academics suggests that in reality
meeting, considering that the Hungarian- in the area of hydrogen and CO2 storage,” it is at least twice that—they will prove
Russian gas agreement will have a substantial said Martin Bartosovic, CEO of NAFTA. another obstacle to a central bank that,
influence on the energy security of The companies will create a working despite market sentiment that if anything
Ukraine and Europe, and will create new group whose goal is to prepare a roadmap for it should be raising rates, is embarking
circumstances that require a comprehensive project implementation. The carbon dioxide on an easing cycle. On September 23, the
analysis of risks and threats and co-ordinated captured during hydrogen generation could regulator cut its policy rate by 100bp to
efforts of countries of the region in order be stored within depleted natural gas fields 18%.
to minimise its negative implications,” the in CEE countries, including Slovakia or The sources, who requested anonymity,
statement said. Ukraine. told the news agency that they expected
The Ukrainian side will also apply to a 15% rise in gas and an 8-15% rise in
the European Commission to provide an electricity prices beginning October 1.
assessment of the conformity of the new Romgaz to borrow €350mn The government would make any final
Hungarian-Russian gas agreement with decision.
European energy legislation.. to buy Exxon’s 50% stake in around 280% in Europe this year and by
Natural gas prices have soared by
Neptun Deep more than 100% in the US, pushing up
Czech energy company Romania’s state-controlled company Romgaz winter fuel bills. Low storage inventories,
high demand for gas in Asia, less Russian
EPIF, Slovakia´s Eustream is understood to be preparing to borrow and liquefied natural gas (LNG) supply to
€350mn through a syndicate of banks in
Europe than usual, high carbon prices and
and NAFTA and German RWE order to finance the purchase from Exxon outages have led to the spike.
of its 50% participation in the Neptun
Turkey is very highly dependent on
to explore development Deep offshore gas project that is carried out imported gas that flows via pipelines from
Russia, Iran and Azerbaijan.
with OMV Petrom, Ziarul Financiar daily
of hydrogen production in reported. hit 60bn cubic metres (bcm) this year,
Local gas consumption is expected to
According to market sources, Romgaz
Slovakia will have to pay around $1bn to €1bn almost a fifth higher than earlier estimates
given how mothballed gas plants have been
(RON4.2bn to RON4.9bn) for 50% stake.
Czech energy company EP Infrastructure At the end of June, Romgaz already had restarted to make up for shortfalls in hydro
(EPIF), majority owned by the Energy RON3.2bn held in government securities and power production, Reuters wrote.
and Industrial Holding (EPH) of Czech bank deposits, therefore it needs a loan to “Hydro’s share [in energy supply] is
billionaire Daniel Kretinsky, has signed a finance the transaction with Exxon. at 10% so far this month, the lowest in a
memorandum of understanding (MoU) on Romanian President Klaus Iohannis said, decade,” one of the sources at a private

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