Page 12 - EurOil Week 27 2022
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EurOil                                                                                                 EurOil

       Serbia sets short-term              maintenance this month.              KKCG says discussing transfer of
                                              Exemptions should also be obtained to
       maximum retail fuel prices          bypass strict environmental requirements   Moravia Gas Storage to Czech state
                                           with regard to the shale oil burning, he added,
       Serbia’s trade ministry said on June 24 it   for instance saving on costs of filters aimed   Czech investment group KKCG, owned by
       has set maximum retail prices of petroleum   at keeping fuel oil residues away from the   billionaire Karel Komarek, is negotiating
       products that will be valid until June 30.  environment.                 with the Czech government to transfer the
         The price of fuel increased in the   Other technical work and the purchase   shareholder rights in Moravia Gas Storage
       previous months amid the energy crisis   contracts for the shale oil, or any alternative   (MGS) to the Czech state, said KKCG
       following the war in Ukraine. The fuel   fuel to natural gas being used, is also needed   spokesperson Dana Dvorakova.
       prices were capped in other countries in the   – Eesti Energia itself needs to estimate how   In March, Komarek said he is seeking
       region.                             much shale oil it needs to produce, i.e. to   to cut his links with Russian energy
         In this period, diesel will be sold at a   refine from shale mined in eastern Estonia,   giant Gazprom due to Russia´s invasion
       price of RSD212 (€1.8) per liter, while the   and to stock up ahead of winter.  of Ukraine. He has been in discussions
       price for 95-octane petrol is set at RSD201   Timo Tartar, deputy secretary general    with the Czech government about how to
       per liter, the Serbian Ministry said in a   at the Ministry of Economic Affairs and   remove Gazprom from the longstanding gas
       statement.                          Communications, concurred that a state of   storage joint venture between his oil and
         In line with the decree, fuel retailers are   emergency could be declared, but said that   gas production company MND (Moravske
       obliged to apply the determined retail prices   this should be down to local municipalities   Naftove Doly) and Gazprom Germania.
       immediately after the official publication on   rather than the state.     Komarek’s close links with Russia have
       the ministry’s website.                He said: “It is necessary to declare a state of   become an embarassment to the gambling
                                           emergency at local government level, in order   tycoon, and were raised by Camelot, the
                                           to be able to use other fuels relating to district   losing bidder in the UK National Lottery
       Eesti Energia chair calls for       heating for a lengthier period of time,” said   tender, in its failed attempt to keep the
                                           Tatar. “However, there is no need to directly
                                                                                license. Komarek has written an open letter
       ‘state of emergency’ over           declare an emergency regarding the national   criticising Russia’s invasion.
                                                                                  MGS is one of the Czech Republic’s
                                           natural gas market.”
       natural gas supply                  not guarantee natural gas will be delivered to   most modern underground gas storage
                                              The planned Paldiski LNG terminal does
                                                                                facilities, a critical part of the country’s
       The board chair of state energy generator   the network at an even tolerable price even if   strategic energy infrastructure. It is a 50-50
       Eesti Energia is calling for a state emergency   it is up and running in time, he added.  joint venture between KKCG, MND and
       to be declared ahead of next winter due to the   Hando Sutter referred to this as passing the   Gazprom. The capacity in the facility is
       possible lack of natural gas supplies or their   buck, however.          now leased to Gazprom, which is to pay
       alternatives, ERR.ee, the website of Estonian   “If the municipalities ask why they should   CZK7.5bn to KKCG for the 15-year lease of
       public broadcaster ERR, reported on July 6.  we declare an emergency in district heating   the vast majority of the capacity.
         Hando Sutter, Eesti Energia board chair,   when there is no emergency regarding natural   According to the Czech News Agency,
       referenced the term “Hadaolukord”, which   gas supplies … this would be a ‘dead circle’,   Gazprom could lose its capacity if it does
       would be necessary due to the ending of   while someone would have to make the first   not start filling it. A recently approved
       natural gas supplies from Russia, while   move,” adding that the environmental issues   amendment to the Energy Act introduces
       a planned Liquefied Natural Gas (LNG)   outlined above could only be addressed via a   the so-called “use it or lose it” principle,
       terminal at the port city of Paldiski may not be  national state of emergency.  which says that gas companies that do not
       ready in time.                         Tatar rejected the idea that the absence of   use their reserved capacity in gas storage
         He said “An emergency situation relating   a national decision imposes any restrictions   facilities in the required minimum amount
       to the natural gas supply should be declared as   on a municipality, while, since time is of the   will be able to lose part of this capacity.
       soon as possible”.                  essence, municipalities could start declaring   Specifically, the capacity they have not used
         Doing so so far ahead of the heating season   their states of emergency in the summer,   up to the minimum required amount, which
       would give generators and industrial users   particularly if it became apparent that natural   is now 80%. The aim of the negotiations
       time to apply for the certification needed from   gas supplies were not going to be sufficient for   is to support the Czech state in its efforts
       the Environmental Board (Keskkonnaamet),   district heating needs.       to become independent from Russian
       he added.                              LNG prices may still be high in relation to   energy. The Czech government is currently
         “If we don’t start dealing with this right   the world price even once the terminal and   assessing the proposal.
       away, the heating season will soon be upon   the infrastructure planned for Paldiski is up   “I can confirm that the KKCG group
       us, by which time it would be too late to start   and running, he added  has submitted an offer to the Ministry of
       making the changes,” Sutter went on.   As to the Baltic-Finnish region, the   Finance for the transfer of shareholder
         “Then extraordinary measures should   annual demand of around 60 TWH (only   rights in Moravia Gas Storage and the
       be taken today to reduce gas consumption   about 5TWh of which pertains to Estonia) of   Ministry of Finance is now actively
       and replace it with other energy sources if   natural gas is at present only guaranteed to a   considering this proposal,” confirmed
       possible,” he said.                 maximum of 39 TWh, market participants   Tomas Weiss, spokesperson of the finance
         Sutter took Narva as an example of the   say, which will not be sufficient for the winter.  ministry, to the news agency.
       latter; shale oil could be used to provide   Estonia is set to stop importing any
       district heating – hot water piped in centrally   Russian natural gas as of the end of this year,
       to many apartment blocks – he said, given   while the state has declared an emergency
       that a cogeneration power station whose   reserve of 1TWh is to be created.
       by-product of hot water could be used
       for the same purpose will be undergoing





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