Page 100 - RusRPTNov19

European company to agree to the total compensation for contaminated oil in
the Druzhba pipeline. The volumes of crude oil affected by the incident have
not been disclosed, but in April, the Hungarian Minister of Innovations and
Technology Peter Kaderjak estimated them to be between 0.35mnt and 1mnt.
MOL and Transneft agreed on compensation of $15/bbl of contaminated oil,
thus, the total amount could be some $38-110mn, the paper writes. Transneft
noted that negotiations with the rest of those affected by the Druzhba issue are
ongoing. One of Kommersant’s sources commented that the amount of
payments to Poland have been agreed based on $15/bbl of compensation as
well, but that the precise number has not been disclosed. Compensations to
Kazakhstan has been decided based on 0.6mnt of contaminated oil.
Russian natural gas giant and pipeline exports monopolist Gazprom has
completed the preparations for launching the Power of Siberia (Sila
Sibiri) pipeline to China , the company said on October 29. Gazprom and
CNPC signed a contract worth $400bn to supply China with gas via the
pipeline in 2014. The gas from Gazprom’s Chayadinsk field in the Yakutia
region has been pumped into the pipeline up to the border hub in the city of
Blagoveshensk, Gazprom said as cited by Reuters. The supplies to China will
start by December 1 2019. Gazprom plans to provide China with 38bn cubic
metres (cm) of gas per year over 30 years through the pipeline. The company
will start supplies via the pipeline with 5bn cm, and the facility will reach its full
capacity after several years.
Russian state gas giant Gazprom asked the government to allow it to use
foreign vessels on the Arctic shelf should domestic analogues not be
available, RBC business portal reported on October 30 citing a letter of the
company to the Ministry of Energy. The limitation on the use of foreign vessels
in the Arctic Northern Sea Route was introduced in 2019 to support domestic
shipbuilding. Reportedly, Gazprom is now requesting an exemption for foreign
vessels employed for work on the continental shelf under a special customs
procedures, which is now being discussed by the Ministry of Transportation
and the Ministry of Energy. Previously Russia’s second largest gas producer
and LNG runner-up Novatek was already exempted from the rules and was
allowed to lease 26 foreign tankers to transport LNG until 2044 on the
Northern Sea Route. The head of Novatek and Russia’s richest man according
to Forbes Leonid Mikhelson previously sharply criticised any attempts to limit
foreign-registered ships, suggesting the introduction of targeted measures of
support for domestic shipbuilders instead.
valuable companies after it was granted permission to develop LNG projects.
Russia’s Ministry of Economic Development suggested increasing the
number of companies eligible to export liquefied natural gas (LNG) in
order to increase investment appeal of Arctic extraction, RBC business portal
reported on October 30 citing the copy of the ministry’s proposal. Currently
only Gazprom , Rosneft , and Novatek have the right to export LNG from
Russia. Novatek’s valuation soared and it became one of Russia’s most
Increasing the number of LNG exporters would further undermine the pipeline
exports monopoly of Gazprom. The gas giant already cried foul in the past
arguing that LNG exports threaten its market position in Europe .
The Ministry of East Development has submitted five draft laws, which
might provide support for Arctic zone development , Vedomosti reports,
citing the Minister of Energy Alexander Novak. The Ministry of East
Development, the Ministry of Energy and the Ministry of Finance have
100 RUSSIA Country Report November 2019 www.intellinews.o