Page 10 - FSUOGM Week 04 2022

FSUOGM NEWS IN BRIEF FSUOGM

Gazprom opts not to book used. In December 2021, Gazprom also did calculated based on an import price of $430
per 1,000 cubic metes — while the import
not book for the month ahead and chose
additional gas through instead to buy capacity if necessary at daily price was $647 in January. Notably, the
new prices set in November were calculated
auctions.
Ukraine and Poland for can pump up to 33 bcm per year. The to cover the negative financial deviations
The 2,000-km Yamal-Europe gas pipeline
incurred in September-October, when
February Polish 683-km section is owned by the joint Gazprom charged Moldovagaz prices of up
to $790 per 1,000 cubic metres.
venture EuRoPol Gaz. The long-term transit
Gazprom has opted not to boost the agreement between Gazprom and Poland Specifically, Moldovgaz now wants to
capacity of the Polish section of the Yamal- ended more than a year ago and ever since increase the end-user price for typical
Europe gas pipeline, as well as additional capacity has been bought on the basis of residential users to MDL14.4 (€0.72) per
transit capacity through Ukraine, for auction booking. cubic metre up from MDL10.2 (8% VAT not
February. From October 2020 to September 2021, included). Until November 2021, the price
This is evidenced by the data of auctions Gazprom booked the capacities of Yamal- of the natural gas charged to households in
for booking the capacities of the GTS of Europe at annual auctions, whereas from Moldova was was only MDL4.3 per cubic
Ukraine and Poland, reports Interfax- October 2021, the company began booking metre.
Ukraine. capacity at the monthly auctions. From The largest electricity supplier in
Gazprom's gas exports have fallen in December of this year bookings have been Moldova, private company Premier Energy,
the first half of January to their lowest daily. Then, on December 21, Gazprom has also filed an application to ANRE for an
level since 2015, according to Bloomberg. stopped booking capacity at daily auctions. 85% price hike from MDL1.51 to MDL2.79
Gazprom had already cut its exports to (€0.14) per kWh in early January. The
Europe by 25% year on year at the end wholesale prices, including that charged
of 2021, despite high market prices and Moldovagaz seeks to by the state-owned company Energocom,
reduced spot sales, while other exporters have surged, the company explained in its
increased them, according to Fatih Birol, increase end-user gas price application.
the head of the International Energy
Agency (IEA). “We believe that there are by another 40%
strong elements of tension in European gas SOCAR and Equinor
markets due to Russia's behaviour,” Birol Moldova’s natural gas transport and supply
said. company Moldovagaz has filed a request to announce encouraging
Ukraine has made it past the the market regulator ANRE to increase the
halfway point of the 2021/2022 heating price of natural gas by 40-50% depending seismic results in the
season, following fears of a major energy on the category of consumer, effective
crisis in the country earlier this year. In January 1. Caspian Sea
addition, the country’s energy system has The impact of such a move would be
sufficient reserves, Prime Minister Denys twofold: on inflation (already 13.9% y/y in SOCAR (State Oil Company of Azerbaijan)
Shmyhal said on 20 January. December) and government expenditures and Norway's Equinor expect oil and gas
Gazprom has a long-term reservation of on subsidies. reserves of industrial value at the Aypara
Ukrainian capacities for the amount of 40bn ANRE's approval would allow the (Azerbaijani for 'Crescent') structure in
cubic metres per year (109mn cubic metres government to extend more consumer the Azerbaijani sector of the Caspian Sea,
per day) for 2022. In January, the comapny subsidies, thus helping Moldovagaz pay its SOCAR's press service said on 21 January.
has used only half of these capacities – the bill to Gazprom without further support SOCAR President Rovnag Abdullayev
average pumping for 15 days is 53 mcm per from the government. In January, the held a meeting on Friday with a delegation
day. executive had to disburse in advance the led by Equinor Vice President for Field
The amount of gas of Russia’s Gazprom end-user subsidies for the entire first Development and International Production
that goes to Slovakia through Ukraine’s quarter of the year. However, even if ANRE Al Cook.
gas transit system went from 84 mcm quickly agrees to the 40-50% price hike and “The meeting discussed the
on December 31 to 26 mcm on January the government covers the increase in full, implementation of the Caspian "Karabakh"
3. This follows another decrease in early Moldovagaz will still be under pressure in project, implemented by companies on a
December, from 109 to 87 mcm per day. February when it has to pay the January bill parity basis, as well as planning exploration
Gas transits through Ukraine have to Gazprom. drilling at the promising Dan-Ulduzu-
decreased by 25% in 2021. According The Moldovan government decided Ashrafi-Aypara structure. It was noted
to Ukraine’s Gas Transmission System in November to cover 50% to 66% of that the seismic surveys carried out at the
Operator (GSTO), the country’s pipeline households' natural gas bills, depending Aypara structure give reason to believe that
moved 41.6 bcm of natural gas in 2021, on individual consumption. The subsidies there are oil and gas reserves of industrial
compared with the 55.8 bcm a year prior. might be increased, President Maia importance,” the statement says.
The decline can be explained by Russian Sandu admitted in mid-January, when Equinor (formerly Statoil) and SOCAR
decisions to move less gas through Ukraine. recommending that the authorities to seek in Azerbaijan are currently cooperating
Gazprom also opted not to book ways to provide compensations for the on exploration and production projects in
additional gas through the Polish section of heating bills. the ACG block, the Karabakh field and the
the Yamal-Europe gas pipeline for February, Moldovagaz grounds its request for 40- Ashrafi-Dan Ulduzu-Aipara section.
even when 89 mcm per day were offered. 50% higher end-user natural gas prices on SOCAR and Equinor on May 31, 2018,
Capacities of 19.3 mcm per day were the fact that the current end-user prices, in Baku signed a risk service contract for
booked for January but have not yet been which increased 2.3 times in November, are the development of the Karabakh field and

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