Page 142 - RusRPTSept21

Wintershall is one of Gazprom’s key partners in Europe and for several Russian projects (the South-Russkoye field, the Achimov formations of the Urengoyskoye field). We think the expertise acquired in implementing the Greensand project might spill over to other similar initiatives, including joint ones with Gazprom.
A number of CO2 capturing and utilisation projects are being considered in Europe. Total, BP, Eni, Equinor and Shell are participating in the Net Zero Teesside project to capture up to 10mnt of CO2 emissions from production facilities in the UK (once it is launched in 2030). Equinor, Shell and Total plan to develop carbon capture solutions in Norway to create 1.5mnt/a of carbon storage capacity (due to be completed by the end of 2024).
CO2 capture projects are being developed by European and global oil and gas companies with government support (i.e. in March, the UK government allocated GBP 0.2bn among blue hydrogen/CO2 capture projects), which is currently not the case in Russia. However, Russian companies have voiced plans for CO2 capture (e.g. Novatek is to implement a CCUS project in Yamal, Tatneft is implementing a project to capture CO2 at a power utility and its TANECO refinery to inject underground, Rosneft mentioned this possibility during its Carbon Management event).
Russian natural gas major Gazprom has recovered the supplies at the Yamal-Europe pipeline from 1.5 thousand cubic meters (mcm) per hour as of August 20 to 2.7mcm per hour as of Monday August 23, Interfax reported citing Gascade data. As of end of Tuesday August 24, the supplies are set to growth to 3.8mcm per hour, according to a technical application. As reported by bne IntelliNews, processing plant of Gazprom in the Yamal-Nenetsk region in West Siberia was hit by fire, which halted the supplies to Yamal-Europe pipeline and caused a short-term pressure on the European gas market. VTB Capital on August 23 notes that this the 3.8mcm per hour is close to the full capacity of the pipeline. The recovery of the supplies is in line with previous expectations that the accident will not affect Gazprom’s deliveries to Europe for a prolonged period of time. This is due to Gazprom having sufficient flexibility to increase gas production at other fields and from dry gas formations, VTBC reminds.
Gazprom and Hungary have signed a 15-year gas supply agreement, which envisages deliveries of 4.5bcm/a through Serbia (3.5bcm/a through TurkStream) and Austria, Kommersant reported on August 30.
142 RUSSIA Country Report September 2021 www.intellinews.com