Page 21 - FSUOGM Week 42

FSUOGM NEWS IN BRIEF FSUOGM

Cargo, claims LTG Cargo has not received Namely, there is uncertainty about the hailed on October 14 the "substantial
a single notification from cargo owners that Ukraine-IMF deal, meaning Ukraine’s completion" of the construction works on
the company would not need to carry the sovereign risk is high, while the recent the Trans Adriatic Pipeline (TAP) pipeline
cargoes agreed in the contracts. interim report of Naftogaz (with losses at the that passes through Albania as a “strategically
Belarus has said this week it plans to ship EBITDA level) does not add optimism about important” project.
at least one oil product cargo via Russia’s the company’s prospects. Such timing might The 878-kilometre pipeline starts at the
Baltic port of Ust-Luga in October. suggest, therefore, that Naftogaz is expecting Greek/Turkish border, crosses Albania
Belarusian cargoes accounted for 30.5% of even worse conditions for a new bond issue and, after passing under the Adriatic Sea,
Klaipeda's total handling volumes (14.1mn in the near future. All this means Naftogaz terminates in southern Italy. It constitutes
tonnes out of 46.3mn) last year. Besides oil is likely to see a higher rate on its new bonds the final segment of the Southern Gas
products, fertiliser producer Belaruskali also as compared to any of the existing notes,’ an Corridor (SCG), a supply route to transport
exports its products via Klaipeda, accounting analyst at the Kyiv-based Concorde Capital Caspian Sea gas from Azerbaijan via
for almost 9mn tonnes per year (tpy). brokerage said in a research note.. Georgia, Turkey, Greece and Albania, as
Party-owned by Belaruskali, Biriu well as under the Adriatic, to Europe.
Kroviniu Terminalas hopes to handle around “TAP will carry natural gas from the
16mn tonnes of Belarusian fertilizers over Caspian Sea to Europe via Greece &
the next five years. Albania, making Albania an integral part
Lietuvos Gelezinkeliai carries 18-19mn CENTRAL ASIA & SOUTH of diversified regional energy architecture.
tpy of Belarusian products and receives Energy diversification = choice = security =
around €100mn of revenue for doing so. CAUCASUS independence,” Kim said in a tweet.
TAP AG, the company that operates the
Kazakhstan to launch new pipeline, said in a statement on October 12
Naftogaz tenders $335mn in integrated gas chemical that after almost four and a half years since
the start of construction, the TAP project is
2022, 2024 notes, aims to complex in 2021 substantially completed.
“The TAP pipeline has been filled with
sell longer bonds Kazakhstan will launch an integrated gas natural gas from the Greek-Turkish border
up to the pipeline receiving terminal in
Naftogaz of Ukraine (NAFTO) initiated on chemical complex in the country’s western Southern Italy,” it said in a statement.
October 14 a tender offer for its $335mn Atyrau Region in 2021, the managing director The company added that currently it
bond maturing in July 2022 and €600mn for technology of Kazakhstan Petrochemical was finalising preparations for launching
notes maturing in July 2024. The maximum Industries (KPI), Bolat Abdualiyev, said at the commercial operations and offering
amount to be purchased is initially set at the 7th international online conference “Oil capacity to the market in alignment with the
$335mn of par value of the bonds, with refining and petrochemistry of the Caspian and adjacent TSOs.
priority given to the shorter notes. The tender Central Asia”. The interconnection point between
price for the 2022 notes is 100.875% of par, "The new complex will produce grades of the TAP pipeline and the Italian gas
and for the 2024 notes is 96.25% of par, or a polypropylene as films and sheets, raffia sheets, transmission system operator Snam Rete
slight discount to market as of October 13. fibers and cast film. The plant will have a design Gas is expected to be completed and ready
The company is offering also an early tender capacity of 500,000 tonnes of products per year. to transport gas by mid-November 2020.
premium of 2% of par for each bond, making “The homopolymer [produced at the
the total early offer price above the market. plant] can be used to make components for One threat to the project is the ongoing
The early tender deadline is October 27 and cars, including seat parts, dashboards, air filter conflict between Azerbaijan and Armenia
the final deadline is November 10. housings, fuel system elements and much over the Nagorno-Karabakh territory, with
The purpose of this debt operation is to more,” Abdualiyev said. Baku on October 14 repeating warnings to
extend the maturity of Naftogaz debt, so its The construction of the project is 77% Yerevan not to target its gas pipeline export
obligation to purchase the tendered notes complete - that includes 100%-completion of infrastructure, and Yerevan denying it has
will be subject to the placement of new design, 70%-completion of equipment delivery any plans to do so and rejecting assertions
$-bonds with five to seven years maturity. and 46%-completion of construction and from the Azerbaijanis that rockets had
Currently, Naftogaz has three eurobonds installation work, the managing director said. already been fired at the infrastructure
outstanding, including the two tendered in question, though without causing any
issues and the $500mn bond maturing in damage..
November 2026. US ambassador hails
“The timing of Naftogaz’s debt operation
does not look optimal, in our view, taking substantial completion of
into account that more than 20 months
remain till the maturity of its earliest bond, TAP gas project
and the economic environment does not
look much supportive for the new issue. The US Ambassador to Albania Yuri Kim

Week 42 21•October•2020 www. NEWSBASE .com P21