Page 6 - FSUOGM Week 20 2022

FSUOGM COMMENTARY FSUOGM

subsidiary said on May 13. Inter RAO’s unit said required in rubles, it told Reuters: “We have
the group had not received payment for electric- never had settlements in rubles, only in
ity sold on the pan-European power exchange euros, Norwegian crowns, Swedish crowns
Nord Pool since May 6, without specifying a rea- and Danish crowns, in line with our standard
son for this. procedures.”
“This situation is exceptional and happened Regarding Finland’s gas needs, Gasgrid Fin-
for the first time in over twenty years of our trad- land is working with Estonian energy company
ing history,” RAO Nordic said in a statement. Elering on jointly leasing a FSRU that will be
Russian power supplies to Finland will be positioned off Finland’s south coast later this
halted at 01:00 on May 14 “for the time being,” year. The vessel is due to arrive in the autumn,
Finnish grid operator Fingrid said in a separate ahead of the next winter heating season. If the
statement. Fingrid added that there was no risk infrastructure in Finland is not ready to receive
of disruption to the Finnish energy system, not- the FSRU’s gas in time, then the vessel will ini-
ing that Russian imports only accounted for 10% tially be anchored off Estonia.
of the country’s overall consumption. Throwing a spanner in the works for the Nato
“Missing imports can be replaced in the aspirations of both Finland and neighbouring
electricity market by importing more electricity Sweden, alliance member Turkey has said it will
from Sweden and also by domestic production,” not support their application to join. Turkish
the operator said. President Recep Tayyip Erdogan said on May 13
Fingrid began making preparations for a that his country is “not favourable” to the idea.
cut in Russian power supply three weeks ago by “We are following developments concerning
curbing transmission capacity by a third. The Sweden and Finland, but we are not of a favour-
operator said that it had been informed by ROA able opinion,” Erdogan told reporters.
Nordic that the Russian supply would be halting An application to join Nato requires the
supply because of payment difficulties with Nord approval of all 30 of the alliance’s members. Yet
Pool. despite being a member, Turkey has sought to
“Nord Pool is the one paying for them. Fin- play a neutral role in the current conflict between
grid is not a party in this electricity trade,” the Russia and the West, including by hosting peace
operator told Reuters. “Fingrid is not a party in talks between the Russian and Ukrainian sides
this electric trade. We provide the transfer con- on its territories. It has also opposed interna-
nection from Russia to Finland.” tional sanctions against Russia, and is one of the
Nord Pool declined to comment on the few European nations that still allows Russian
report. Asked whether payments had been aircraft to enter its airspace. ™

PIPELINES & TRANSPORT

Chinese yards to stop work on Arctic LNG 2

CHINA CHINESE yards are reportedly set to halt work work on modules for Train 3 of Arctic LNG 2
on modules for the Novatek-led Arctic LNG 2 was halted on April 29, and work on Train 2 is
The problems relate to project in Russia by the end of May. This comes due to follow by May 27. Train 2 is reported to be
sanctions. amid increasingly strict Western sanctions tar- around 40% complete, and Train 3 is at less than
geting the Russian economy – including the 10% completion. Train 1 is thought to be at least
country’s energy sector – in the wake of the war 85-95% complete.
in Ukraine. The last delivery of modules for the project
Modules for the LNG facility are being pre- from China took place in February, days before
fabricated across several Chinese yards. Some Moscow launched its invasion of Ukraine. A
yards, including Penglai Jutal Offshore Engi- 12-tonne module was delivered via the North-
neering (PJOE) and Cosco Shipping Heavy ern Sea Route (NSR) in what was the first such
Industry, have completed construction on their voyage using the route that late in the winter. The
components for Arctic LNG 2 and are await- vessel carrying the module reportedly departed
ing instructions from France-based contractor Tianjin, China, on December 29, entered the
Technip Energies on shipping them. However, NSR at Cape Dezhnev on January 25, and arrived
construction remains ongoing at other yards, at the site of Arctic LNG 2 on February 17.
including Bomesc. Given the work stoppages in China, and the
Under the EU’s fifth sanctions package, Euro- fact that TotalEnergies, which has a 10% stake
pean companies face a firm deadline of May 27 in Arctic LNG 2, is withholding further funding
to conclude any outstanding deliveries. With the from the project, the chances of it coming online
deadline fast approaching, it seems increasingly as previously planned look increasingly slim.
unlikely that already completed modules can still Technip’s compliance with sanctions means it
be transported from China to the assembly site will likely have to hand over its $7.6bn contract
in Russia. for Arctic LNG 2, in what would likely be a com-
Industry outlet Upstream has reported that plicated process. ™

P6 www. NEWSBASE .com Week 20 18•May•2022