Page 11 - FSUOGM Week 50 2020

FSUOGM PIPELINES & TRANSPORT FSUOGM

Work on Nord Stream 2 resumes

RUSSIA CONSTRUCTION of Russia’s embattled Nord said they anticipate the pipeline being up and
Stream 2 gas pipeline has resumed, the project’s running by early 2021.
News that pipelaying operator said on December 11, after coming to The original goal of Nord Stream 2 was to
had resumed sent a halt around a year ago after the US imposed allow Gazprom bypass Ukraine as a transit route
Gazprom's stock up sanctions. for its European gas deliveries. But after the
3.5% in Moscow. The pipeline under the Baltic Sea from project fell behind schedule last year, Gazprom
Germany to Russia is understood is be around was forced to strike a new five-year transit deal
94% complete. Germany’s Authority of Water- with Ukraine in December 2019. This means the
ways and Shipping Management published a company will not get full benefit from the pipe-
notice to seafarers on December 11 that build- line until 2025.
ing work in German waters had resumed. News that pipelaying had resumed sent
It warned other ships to avoid the area until Gazprom’s stock up 3.5% on the Moscow stock
“around December 31”, noting that “anchoring exchange. Besides Gazprom, the pipeline is also
or fishing is not permitted in the area of the backed financially by Germany’s Wintershall
planned pipelines.” Dea and Uniper, Royal Dutch Shell, France’s
The Nord Stream 2 operating company, a Engie and Austria’s OMV.
100%-owned subsidiary of Russian state gas Fortuna is one of several Russian-owned ves-
supplier Gazprom, confirmed in a statement sels that were expected to play a role in complet-
that “the pipelay vessel Fortuna will lay a 2.6-km ing the pipeline. Gazprom has been unable to use
section of the pipeline in the German Exclusive foreign pipelaying vessels owing to sanctions.
Economic Zone in water depths of less than 30 Despite US pressure, Germany has maintained
metres.” its support for Nord Stream 2, even following the
Nord Stream 2 will pump up to 55bn cubic political fallout from the poisoning of Russian
metres per year of Siberian gas to Gazprom’s opposition figure Alexei Navalny earlier this
European customers. Russian authorities have year. ™

Rosneft strikes 10-year transport

deal with Russian Railways

RUSSIA RUSSIA’S Rosneft has struck a deal with Russian or 18-22% of total volumes transported. As such,
Railway on the delivery of some 237.5mn tonnes “the transportation agreement does not appear
Rosneft earlier of crude oil and refined products over the next to restrict Rosneft’s choice of transportation
expressed ten years, securing significant tariff discounts. routes completely,” VTBC said on December 10.
dissatisfaction with the Rosneft primarily relies on railways to export The deal simultaneously gives Rosneft greater
high cost of transporting fuels from its Samara, Ufa and Saratov refiner- operational flexibility, VTBC said, seeing the
oil given the sharp ies in southern Russia. Russia’s Kommersant news as slightly positive for Rosneft’s operations
decline in international reported on December 10 that the new deal but not market-moving.
prices this year. gave the company a 18% discount on shipments Rosneft is among the biggest users of cargo
of diesel and fuel oil from Samara, a 14.8% dis- rail transport in Russia, and the company uses
count on diesel, gasoil and fuel oil supplies from this status as leverage for securing attractive
Ufa and a 25% discount for products from the rates. It has also locked horns frequently over
Saratov plant. the years with Transneft over tariffs, especially
Rosneft earlier expressed dissatisfaction with regarding the cost of shipping crude to China. ™
the high cost of oil and oil product transport,
given the sharp decline in crude prices this year.
In a meeting with Russian President Vladimir
Putin in May, Rosneft CEO Igor Sechin asked
that the tariffs of natural monopolies, such as
Russian Railways and oil pipeline operator
Transneft, be reduced until the OPEC+ deal
ended.
VTB Capital (VTBC) estimates that Ros-
neft’s annual railway transport of oil products
for export came to 56-65mn tonnes in 2018-19,

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