Page 15 - FSUOGM Week 23 2022

FSUOGM NEWS IN BRIEF FSUOGM

Uniper and RWE pay Interconnector (IGB), through which unscheduled on-site inspection of 14
Bulgaria will be able to receive Azerbaijani
CPC facility sites in the Krasnodar
for Russian gas via gas, will be ready for commercial operation Krai, Astrakhan Region, the Republic of
Kalmykia and the Stavropol Krai.
in early September. “We assessed the latest
Gazprombank scheme implementation of the IGB with Aleksandar the findings and planned to develop a
The company said it was reviewing
Nikolov, Minister of Energy of Bulgaria. The
German energy companies Uniper and IGB is expected to be ready for commercial programme to “rectify” them. It did not
RWE have paid for Russian gas using operation in early September,” Shahbazov elaborate on the findings, but the issue
Moscow’s Gazprombank scheme, Reuters tweeted. likely relates to the halting of CPC’s
reported on May 31. The commercial launch of the IGB will operation earlier in the year due to alleged
In March, Russian President Vladimir allow Bulgaria to purchase gas directly from damage at two of three Single Point
Putin demanded that European consumers Azerbaijan. At the end of March 2022, the Moorings (SPMs) in the CPC pipeline
pay in rubles, which the European Union IGB operator announced that the IGB was system.
eventually refused. As such, Moscow already connected to the Trans-Adriatic The mooring points allow tankers to
launched the scheme which involves buyers Gas Pipeline (TAP), which in the future will be loaded safely at a significant distance
depositing euros or US dollars into a give Bulgaria access to gas from Azerbaijan offshore, including in poor weather
Gazprombank account, which is converted for the first time. The launch of the conditions
into rubles and transferred to Russia’s state- interconnector will allow Bulgaria to refuse
owned energy co-operation, Gazprom. Russian gas.
Many countries have refused to follow Once the IGB is put into operation, the Moldova’s regulator
this scheme, as it involves Russia’s central tie-in will initially provide Bulgaria with 1
bank, which was sanctioned after the bcm of gas per year, with a further increase accepts 20% gas price
Russian invasion of Ukraine. However, to a design capacity of 3 bcm per year.
Uniper and RWE claim they are not Azerbaijani gas supplies to Europe (Italy, hike, Moldovagaz
breaking sanction guidelines and have co- Greece and Bulgaria) began on December
ordinated with the German government in 31, 2020 via the TAP gas pipeline. However, complains
order to keep Russian gas flowing into the due to the lack of an interconnector, the
country. volume of Azerbaijani gas supplies to Moldova’s energy market regulator ANRE
"Like other German and European Bulgaria was only a quarter of planned. accepted a 20% rise for the end-user
companies, Uniper has changed the Currently, Azerbaijani gas is supplied to natural gas price, to MDL18.6 (€0.91) per
payment method for gas deliveries from Bulgaria through the existing line with a cubic metre, compared to MDL21 asked
Russia. Uniper pays in euros in accordance capacity of 3.68 bcm per year at the border for by the Gazprom-controlled local supply
with the new payment mechanism," Uniper point Kula-Sidirokastro with Greece. This and distribution firm Moldovagaz.
said in e-mailed comments. severely limits the possibility of importing Moldovagaz has asked ANRE to endorse
"The first of these payments was made at Azerbaijani gas to Bulgaria and allows only end-user prices that are 59% higher for
the end of May. Uniper is therefore acting in 250-300 mcm per year to be supplied. residential consumers and 67% higher for
compliance with sanctions and can continue Other countries are also interested in large industrial consumers.
to ensure timely fulfilment of the contract." joining the IGB. Deputy Prime Minister The price fails to cover the import
Following the revelations of Russia’s of the Republic of Serbia and the Minister cost. This will result in the accumulation
brutality in Ukraine, there have been of Mining and Energy Zorana Mihajlovic of financial deviations of MDL3.5bn
widespread calls for Europe to cut off said on June 2, at the 27th Energy Forum (€175mn) by this autumn, Moldovagaz’s
imports of Russian gas, but many countries, in Baku, that Serbia is 100% dependent on president Vadim Ceban warned.
led by Germany, have shied away from energy supplies from Russia, so Serbia is In June, the company will pay $880 per
the idea, afraid of the negative economic currently is in talks with Azerbaijan about 1,000 cubic metres in June, down from
impact. Russia accounts for 41.1% of the joining the IGB. $912 in May. The price paid before June
EU’s gas imports, which totalled 155bn 1, MDL15.5 per 1,000 cubic metres, was
cubic metres (including LNG) in 2021, calculated based on an import price of
worth $145bn, according to Institute of CPC receives order to about $620 per 1,000 cubic metres.
International Finance (IIF) estimates..
rectify violations found by

Azerbaijan plans to ready Russia’s government
Greece-Bulgaria link for Caspian Pipeline Consortium (CPC) has
announced that it received a May 27 order
commercial operation in to rectify violations found by Russia’s
Federal Service for the Supervision of
early September Natural Resources.
The CPC system is the primary route
Azerbaijani Energy Minister Parviz for shipping Kazakh oil to the West.
Shahbazov said that the Greece-Bulgaria The order stemmed from an

Week 23 08•June•2022 www. NEWSBASE .com P15