Page 11 - FSUOGM Week 26 2022

FSUOGM POLICY FSUOGM

Russia mulls national wealth fund

for Ust-Luga gas complex

RUSSIA RUSSIA’S government is considering financing from the National Wealth Fund before the col-
the construction of Gazprom’s Baltic gas pro- lapse in relations between Russia and the West
Russia has downplayed cessing and LNG complex with aid from the over Moscow’s invasion of Ukraine. Germany’s
the impact of Western country’s National Wealth Fund until 2023, the Linde notably withdrew from plans to design
sanctions. Moscow-based Vedomosti newspaper reported and build the facility in June.
on June 27. Western sanctions on imports of equip-
The Gazprom-operated complex in Ust-Luga ment and component parts will not impact
will process 45 bcm per year of gas and produce the project, First Deputy Economic Develop-
13mn tonnes per year of LNG, 19 bcm per year ment Minister Ilya Torosov told Vedomosti.
of pipeline gas ready for transport to Europe and “The problem is more of a strategic one here,
3.6mn tpy of ethane and 2.2mn tpy of LPG. Some the obstacle here is not replacing a German
of these liquids would be used as feedstock at a turbine with a Russian or a Chinese one, it is
nearby petrochemicals plant that Rusgazdoby- about the adaptation of the projects, their pay-
cha is developing on its own. back periods, and the [social and economic]
The project was already in line for funding importance.” ™

EU approves gas storage rules

EU THE EU has approved new gas storage leg- coming years the requirement will be raised
islation designed to bolster the bloc’s energy to 90%.
The EU has approved security. “Member States without storage infrastruc-
its 80% storage The European Commission’s proposal in late ture are required to agree bilateral arrangements
requirement for the March to mandate an increase in gas storage uti- for sufficient quantities to be stored for their use
start of the heating lisation to 80% by the start of November has now in neighbouring countries, in a spirit of solidar-
season. been approved by the European Council and the ity,” the European Commission explained in
European Parliament. Normally such legislative a statement. “Gas storage facilities will now be
changes take much longer to pass into law, but considered critical infrastructure and all storage
the process was fast-tracked given the desperate operators in the EU will have to go through a
need to stock up on gas as the risk looms that new certification process to reduce the risks of
Russia could make further reductions in gas flow outside interference.”
to Europe. Simson estimated that a dozen EU countries
“I would like to pay tribute to the positive have now had their Russian gas supply cut off
and constructive approach that the Parliament or are experiencing reductions in flow. Poland
and Council have shown on this proposal,” EU and Bulgaria lost their supply in late April after
Energy Commissioner Kadri Simson said in a refusing to comply with the Kremlin’s rubles-
statement. “This is an important statement of for-gas decree, followed by Finland and buyers
EU unity, determination and speed of action in in Denmark, the Netherlands and Germany the
the face of the Kremlin's moves to weaponise following month.
their gas exports. It is now crucial that we press Making matters worse, Gazprom said earlier
on with meeting the new storage targets and step this month it was curtailing gas supply via the
up our preparedness in case the situation further Nord Stream 1 pipeline by 60%, blaming tech-
deteriorates.” nical difficulties, including Siemens’ failure to
Under the legislation, 18 of the EU’s 27 return equipment sent off for repairs on time,
member states are required to have their due to sanctions. Germany, Italy, France and
storage facilities 80% full by November 1, Slovakia have subsequently reported drops in
and are encouraged to aim for 85%. In the Russian gas flow. ™

Week 25 22•June•2022 www. NEWSBASE .com P11