Page 10 - EurOil Week 08 2022

EurOil POLICY EurOil

Russia’s encroaching on Ukraine reignites

Polish debate on commodity imports

RUSSIA PRESIDENT Vladimir Putin’s decision to rec- production of 54mn tonnes.
ognise the separatist-held Ukrainian regions of Russia was the third-largest source of imports
Russia’s share in Donetsk and Luhansk as sovereign states and to Poland in 2021, with purchases skyrocketing
Poland’s oil supply is the subsequent entry of the Russian army there 72.7% on the back of rallying prices of oil and
90%, and for gas this has put Poland’s imports of energy commodities gas. Still, imports from Russia were just 6% of
is 60%. from Russia back under the spotlight. Poland’s imports overall.
Poland has bought nearly PLN1 trillion Poland has advanced plans to reduce depend-
(over €200bn) worth of Russian oil, coal and ence on Russian gas thanks to the Baltic Pipe, the
gas between 2000 and 2020, a recent report by expansion of the LNG terminal in Swinoujscie,
Forum Energii, a Polish energy think-tank, and a planned terminal in Gdansk.
said. Warsaw has said a number of times that it is
“Russia is by far the dominant supplier of not going to renew its gas supply deal with Gaz-
[energy commodities] to our country. Observ- prom, which will expire by the end of the year.
ing this trend is important not only due to the Poland has also made some moves to diver-
currently difficult geopolitical situation. There is sify its oil supplies by selling a stake in Lotos, a
no deeper reflection on energy security and the refinery, to the world’s biggest oil company, Saudi
future use of fossil fuels,” the report said. Aramco.
Russia’s share in Poland’s oil supplies is nearly Coal remains Poland’s vulnerability, as it is the
90%, and around 60% for gas. Coal imports chief source of electricity, covering 70% of gener-
from the east have played a less significant role ation, although there are plans to reduce it, with
but still came in at 12.5mn tonnes in 2020, a sig- renewables and nuclear becoming gradually a
nificant share in comparison to Poland’s overall reality from the late 2020s and early 2030s.™

European energy firms sue govts

over climate policy

EUROPE FIVE European energy groups are invoking that the Netherlands’ phase-out of coal “does not
the Energy Charter Treaty (ECT) to seek €4bn provide for compensation for the disruption to
The companies are ($4.5bn) in damages from governments for clos- the company’s property.” Uniper, meanwhile,
suing the governments ing down or preventing coal, oil and gas projects, said its “first concern” was “to obtain legal clar-
of thw Netherlands, the Financial Times reported on February 21. ity” about having to close its coal power plant
Italy, Poland and The companies including German energy early without adequate compensation, while
Slovenia. companies RWE and Uniper and the UK’s Rockhopper declined to comment to FT. The
Rockhopper have launched cases against the latter company has sued Italy over a ban on new
Netherlands, Italy, Poland and Slovenia. These oil and gas operations near the country’s coast.
cases relate to decisions by governments to either The ECT was established in the cold war, ini-
order the closure of coal power plants, prevent tially as a means of encouraging companies to
the development of certain fossil fuel projects or invest in the former Soviet Union and in eastern
require that they pass an environmental impact bloc countries. And it represents the strongest
assessment. tool that energy companies can use to recoup
EU governments are looking to accelerate the investments it lost because of climate policy.
phase-out of coal-fired power as part of the bloc’s Environmentalist groups have called for ECT
push to reduce emissions by 55% by 2030. And to be revised, arguing in an open letter to the EU
gas power plants, as well as oil and gas upstream in December 2019 that it is “incompatible with
developments, have also faced increased scru- the implementation of the Paris Climate Agree-
tiny over their climate impact. ment, just transition policies developed together
RWE said it endorsed “the importance of the with workers and their unions, and other neces-
energy transition” but “does not consider it right” sary public policy measures.” ™

P10 www. NEWSBASE .com Week 08 23•February•2022