Page 13 - FSUOGM Week 43 2021

FSUOGM NEWS IN BRIEF FSUOGM

emissions in production and transportation predictability of the financial flow, we under the long-term contract.
of hydrocarbons. extend indexation of prices by more stable Spinu confirmed and clarified the
Novak also met with several other top forward products." information provided by Gazprom
Saudi Arabia officials, including with Crown The company is confident about its officials to Russian media, namely that
Prince Mohammed bin Salman Al Saud competitiveness of its gas even if the E.U. the Russian company wants an agreement
and told him that the two countries were introduces the hydrocarbon tax on gas, she over the historic debt owed by Moldova
important partners that had managed to added. (not including the separatist republic of
ensure a stable balance between supply and Transnistria). Spinu hasn’t confirmed the
demand on the oil market for several years. value of the debt, indicated by Gazprom at
Novak talked about partnership between $433mn of principal and $709mn including
the Russian Direct Investment Fund (RDIF), EASTERN EUROPE interest and penalties, but he explained that
and the Public Investment Fund (PIF) the debt has been accumulated since 1994.
of Saudi Arabia with Tariq Al Qahtani, Moldova looks beyond Moldova will ask for an international audit
executive committee member of the Saudi on the debt before reaching any agreement
Russian Business Council. Investment Russia for natural gas over the repayment, Spinu said. Gazprom
of U.S. $2.5 billion was implemented asked Moldova to agree on paying the debt
within the joint platform, and the partners supplies over a three-year period.
are working on 20 more projects in the As a bridge solution, Gazprom is
spheres of oil servicing, oil refining, As Moldova struggles to strike a new delivering natural gas to Moldova on a
cargo transportation, communication natural gas deal with Russia’s Gazprom, monthly basis, with the price for November
technologies, and agriculture. Chisinau has mandated state-owned calculated as the spot, market price for
Saudi Arabian company ARGAS and company Energocom — so far charged with October minus a 25% discount agreed
Russian oil company Zarubezhneft signed electricity imports — to buy additional gas by the two countries. Gazprom, however,
an agreement on mutual secondment from alternative sources. is asking for timely payment of the gas
of employees during the meeting, while Moldova declared a state of emergency delivered under this arrangement and
ARGAS also signed a cooperation earlier in October, as it struggles to secure the amounts are lower than Moldova’s
agreement with Russian state geological gas to fulfil rising demand. Gazprom consumption.
exploration company Rosgeo. representatives have made clear that a
long-term contract will be signed only if
Moldova pays its historic debt of $709mn, Ukraine digs heels in to
Gazprom estimates 2021 and the Russian gas giant says supplies will remain key node in Europe’s
continue under a short-term contract after
exports to Europe, Turkey at November 1 only if Moldova pays for the gas supply
gas consumed in September and October.
183 bcm supplies, Energocom opened a tender to buy Ukraine is pulling out all the stops to
In an attempt to secure alternative
Russian gas giant Gazprom has maintained 5mn cubic metres of natural gas as soon as remain a key part of Europe’s energy
its 2021 forecast of exports to Europe and possible from a trader licensed in one of the infrastructure, following the construction
Turkey at 183 billion cubic meters (bcm), European Union’s member states. of Nord Stream 2. While it is looking to
head of the export branch Gazprom Export The gas is needed to stabilise the explore increasing domestic gas production
Yelena Burmistrova said, as quoted by the pressure in the country’s gas transport grid. as well as new energy sources such as
corporate magazine on October 25. Romania’s Transelectrica confirmed last hydrogen and biomethane, Ukraine also
"We have kept the estimate for the week that it is providing such balancing wants to remain a transit state for Europe-
European gas sales to Europe and Turkey services through the existing pipeline, but bound Russian gas. Ukraine is ready to
for the year at up to 183 bcm," Burmistrova it seems that the volume of gas needed pump an additional 55bn cubic metres of
said. The supplies to Turkey are planned at exceeds the balancing arrangements. gas to the EU in excess of the 40 bcm that
24–25 bcm in 2021. Moldova’s Prime Minister Natalia Gazprom must pump under the transit
Burmistrova separately said that the Gavrilita indicated that Moldova managed contract. Ukraine may also assist Moldova’s
sales to China via the Sila Sibiri pipeline already to buy 1mn cubic metres, as a gas supply, said Oleksiy Danilov, of the
amounted to 7.1 bcm in January– technical test, from Poland. The price was, National Security and Defence Council.
September. however, very high at $1,000 per thousand “The Cabinet of Ministers together with
The official said that 2022 sales would cubic metres. The price paid in October to Naftogaz Ukraine and the GTS Operator
depend on the weather and liquefied natural Gazprom was $790. will determine special conditions for the
gas (LNG) market. Burmistrova could Meanwhile, Moldova’s Deputy Prime transportation of additional volumes of
not provide a forecast for the sales on the Minister Andrei Spinu briefed the media natural gas of the GTS of Ukraine to EU
electronic platform in 2021. about his negotiations held so far in countries [of] the amount of at least 55 bcm
Sales from the LNG portfolio of the Moscow on a new natural gas contract with per year,” Danilov announced. On October
company are to total more than 8 million Gazprom and said he will meet Gazprom’s 20 Ukraine vowed to become self-sufficient
tonnes in 2021. CEO Alexey Miller in St Petersburg on in gas production within five years.
According to Burmistrova, Gazprom is October 27. In order to remain part of Gazprom’s
extending indexation of the contract prices Spinu made clear that Moldova seeks a energy infrastructure, Ukraine is ready to
by more stable products. fair long-term agreement with Gazprom provide Russia with a 50% discount on gas
"The share of contracts linked to the based not on preferential prices, but on transit to Europe, said President Zelenskiy.
spot prices and forwards on the European similar terms to those extended by the According to Zelenskiy, the proposal
markets in our portfolio grew significantly Russian company to other countries. He concerns the transit of gas in excess of the
over the last few years,” she said. said Moldova proposed two formulas for 40 bcm established by the contract with
“At the same time, to ensure calculating and updating the gas price the Russian company in order to ease the

Week 43 27•October•2021 www. NEWSBASE .com P13