Page 14 - FSUOGM Week 20 2021

FSUOGM NEWS IN BRIEF FSUOGM

will reach at least 70%, he said. 30 that they would resign as of May 14. our expectations, if less optimistic than
Novatek may also build another four gas The decision followed a scandalous April some. We think the completion of NS2
liquefaction lines with a combined capacity 28 AGM of Naftogaz where the Cabinet remains a material catalyst for Gazprom
of 26 million tonnes of LNG in 2024–2030, decided to: 1) dismiss the entire supervisory [shares]," BCS Global Markets commented
Mikhelson said. board; 2) replace CEO Andriy Kobolev on May 11.
“The plans for 2024–2030 include for Yuriy Vitrenko; 3) re-appoint all the Previously various timescales indicated
possible construction of four more members of supervisory board. that NS2 could to be finished no later than
liquefaction… As I said, 80,000 jobs, and According to lb.ua report, at the May 13 September, BCS GM markets reminds,
we will load Zvezda with five tankers per meeting the supervisory board members while affirming a Buy call on Gazprom's
year, which is about 26–30 carriers until were asked to offer the conditions under shares.
2030. We calculated that this construction which they would stay at their positions. In early April, Pavel Zavalny, Head of
alone will add 0.15% to the GDP annually,” The next day, they listed such conditions, the State Duma Committee on Energy, had
he said. including preserving the authority of the postulated that both lines of NS2 could
Under a presidential order, the five supervisory board members for one be finished as early as June, while earlier
company’s construction should account year with immediate firing of the sixth estimates had put Line B being finished by
for loading of 64mn tonnes of LNG member, Robert Bensh, and preserving June and Line A, on which construction
and for a total of 90mn tonnes of cargo the current composition of the company’s only recently restarted, seeing completion
transportation through the Northern Sea executive board for one year. Ukraine’s in September (in-line with BCS GM
Route, he said. Under a recently approved PM had accepted such conditions, lb.ua assumption).
government ruling, Russia’s combined LNG reported. "Given the negative headlines generated
production should grow to 140mn tonnes “News that five Naftogaz supervisory around the line over the last few years, we
by 2035, and Novatek’s new production board members would resign as of May think Nord Stream-2’s physical completion
lines would contribute to that, Mikhelson 14 appeared in the same evening on the – even if continued sanctions efforts by
said. company’s website. Shortly [afterwards] it the US government keep shipments from
Novatek expects to switch into year- was deleted from the website, suggesting beginning immediately – will be positive for
round navigation and cargo transportation that both the PM and presidential office Gazprom’s stock," senior oil and gas analyst
through the Northern Sea Route in 2023– found common ground with the insurgent Ronald P Smith argues.
2024, he also added. supervisory board members. If their Furthermore, as BCS GM expects Line
The US $27bnArctic LNG 2 plant is conditions have been fully accepted, B indeed to be finished by mid-summer,
expected to produce 19.8mn tonnes of that would mean the new CEO Vitrenko the de-risking of Gazprom’s stock could
LNG per year. Novatek owns 60% in the will have to work for one year with top start well before construction on the entire
plant, while France’s Total has 10%, China’s managers appointed under Kobolev. This, project is completed, be that in the summer
CNOOC and CNODC have 10% each, and as well as the apparent enmity between or late September, Smith believes.
Japan Arctic LNG, a consortium of Japan’s Vitrenko and some of supervisory board
Mitsui and JOGMEC, has 10%. members, will limit Vitrenko’s ability to
influence the processes in the company.
Such potential sources of the conflicts CENTRAL ASIA & SOUTH
only add risks for Naftogaz' stability,” an
EASTERN EUROPE analyst at the Kyiv-based Concorde Capital CAUCASUS
brokerage said in a research note.
Naftogaz supervisory SOCAR schedules new

board has reportedly found Nord Stream 2 completion bonds issue ‘to meet great

common ground with the expected end-Sept demand’

government Russia's pipeline to Germany via the Baltic PAzerbaijan’s national oil company SOCAR
has scheduled a new bonds issue for the
Sea Nord Stream 2 (NS2) may be completed
Members of the supervisory board of by late September, before Germany’s domestic market, taking into account great
Naftogaz (NAFTO) met with PM Denys parliamentary elections on September demand, Trend has reported citing company
Shmyhal and the head of the presidential 26, according to Sergei Nechaev, Russia’s unit SOCAR Capital.
office Andriy Yermak on May 13 to discuss Ambassador to Germany, as cited by The issue of five-year bonds will
possible options for the continuation of the Vedomosti daily. reportedly be released on September 20.
board’s activity, lb.ua reported on May 14. "The latest indications from high-level ''The demand for the first SOCAR bonds
Recall, five (out of six existing) members Russian sources indicate NS2 should be issued in the amount of $100 million has
of the supervisory board declared on April completed by end-September, in line with more than doubled, and the volume of

P14 www. NEWSBASE .com Week 20 19•May•2021