Page 14 - FSUOGM Week 36 2021

FSUOGM NEWS IN BRIEF FSUOGM

Energy Ministry has no natural gas well in the second half of Turkey cuts Azerbaijani
2022 and carry out further tests for more
plans to forbidd gasoline research. If the company is successful in gas imports by 10% after
finding gas in the development land, it will
exports begin production in 2023, PGNiG president contract expiry
Paweł Majewski said.
A gasoline export prohibition remains Majewski believes that PGNiG can help Turkey imported 4.89bn cubic metres (bcm)
on the agenda, but the Energy Ministry strengthen both Ukraine and Poland’s of gas from Azerbaijan in the first half of
prefers interfering with the market as little energy security by increasing the number this year, marking a decrease of 10.4% from
as possible, Deputy Minister Pavel Sorokin of sources for gas production and building the 5.44bcm recorded for the same period
told newspaper Izvestiya in an interview new supply routes. of 2020, according to the Turkish Energy
released on September 3. Since August 2016, PGNiG has been Market Regulatory Authority.
"All measures that can be applied are working together with ERU to export In June, Turkey imported 522.56mn
always on the agenda, including an export natural gas to Ukraine. Both companies cubic metres (mcm) of gas, some 43.05%
ban… But this is a very strong measure supplied gas for the needs of the Ukrainian less on a y/y comparison. Azerbaijan ranked
because we have managed to remove gas transmission network and storage third in Turkey's gas imports after Russia
exports thanks to our agreements because operator Ukrtransgaz. and Iran in the month.
there is a premium on the domestic In December 2019, they signed an APA Economics said that the decrease
market," Sorokin said. agreement to conduct exploration and in gas imports was due to the expiry of a
The official separately said that he sees production operations together in the Lviv contract for the first stage development
the fair oil price at U.S. $55 and $60 per region, targeting potential gas reserves. of the Shah Deniz gas condensate field in
barrel. Then in May, PGNiG was given permission Azerbaijan. No new agreement has been
from the Antimonopoly Committee of signed between parties to the contract

Ukraine to acquire a majority stake in Botas, of Turkey, and the Shah Deniz
Karpatgazvydobuvannia. consortium..
ERU is one of the largest private gas
traders in the country. Despite talk of
interest in a green transition for the KazMunayGas achieves
EASTERN EUROPE Ukrainian economy, natural gas represents
nearly one-third of the country’s total record profitability despite
Polish oil and gas company energy demand. weaker operational metrics
Although Ukraine’s energy efficiency
PGNiG buys Ukrainian firm has somewhat improved in the industrial in H1
sector, overall economic growth has slowed
to drill gas in western because there are not enough investments Kazakhstan’s KazMunayGas achieved record
made in the modernisation of energy
Ukraine infrastructure, which leads to unstable profitability in its oil and gas producing,
refining, transport and marketing activities
energy supplies and inefficient energy
Poland’s state-owned oil and gas company consumption. in the first half of 2021, despite generally
PGNiG has bought a Ukrainian company Ukraine lacks the modern technology poor operational metrics, Upstream
that holds a licence to drill natural gas wells to bring out its full potential in natural reported.
in an area near the Polish border. This news gas production, Yuriy Vitrenko, CEO of KazMunayGas’ output fell by over 5% in
comes despite a 90% collapse in profits this Naftogaz, the country’s largest state-owned the gas and oil segments, with an average
year for the Polish hydrocarbon exploration national oil and gas company, said during 4.1bn cubic metres of gas per day and
company. a webinar held by the US-Ukraine Business 445,000 barrels of oil per day produced in
Under the deal signed on August 30, Council in June. the first half of the year.
PGNiG will acquire 85% of the shares Nevertheless, the company said its
in Karpatgazvydobuvannia from Energy revenues grew by 39% to KZT3.1tn ($7.3bn)
Resources of Ukraine (ERU) Management Russian energy minister in the first six months of this year from the
Services. same period of 2020.
ERU, a gas supplier in Ukraine and a discusses gas transit with Net income, attributable to shareholders,
long-time partner of PGNiG, previously increased sixfold to KZT644bn.
owned Karpatgazvydobuvannia and held Berlin As a result of the better profitability, the
the licence for gas exploration in the firm generated $685mn of free cash in the
western part of the Lviv region. Russian Energy Minister Nikolai Shulginov first half.
“Our successful activities so far and has discussed Russian gas transit with This, in turn, reduced net long-term debt
strong co-operation with ERU have whetted Germany's envoy for gas transit across by over 10% from 31 December 2020 to
our appetite to further tap the potential of Ukraine Georg Waldersee, the Energy around $5.5bn.
the Ukrainian market,” Majewski said. Ministry said on September 7.
Preliminary analysis has been promising "I am sure that the blue fuel will only
so far, according to the Polish company. The strengthen the positions on the global
area holds the same potential as Przemyśl, energy market and will remain an effective
Poland’s largest natural gas field, estimated basis of fighting against climate change," the
to hold 20bn cubic metres of gas. minister said, as cited in the statement.
The Polish company plans to drill a

P14 www. NEWSBASE .com Week 36 08•September•2021