Page 15 - GLNG Week 39 2021

GLNG NEWS IN BRIEF GLNG

reportedly expected to rise by up to 15% next
month, with spiking global prices pushing
up energy import bills for a country that has
scarce hydrocarbon resources of its own and is
increasingly dependent on gas plants to cover
for hydro-generation shortfalls occurring
amid prolonged drought conditions.
Reuters on September 23 referred to four
industry sources as anticipating the price hike.
If costlier energy prices add to Turkey’s
inflation problem – officially annual inflation
stands at 19.25% although independent
research conducted by Istanbul academics
suggests that in reality it is at least twice
that – they will prove another obstacle to a
central bank that, despite market sentiment
that if anything it should be raising rates, is
attention by market operators, especially TotalEnergies commits embarking on an easing cycle. On September
during the public consultation held between 23, the regulator cut its policy rate by 100bp
February and March 2021, Adriatic LNG to the protection of to 18%.
offers 16 products, consisting in aggregated The sources, who requested anonymity,
LNG discharge slots, that can be combined biodiversity in the Arctic told the news agency that they expected a 15%
together. Products available for the first rise in gas and an 8-15% rise in electricity
auction session, closing on December 2, 2021, LNG 2 project prices beginning October 1.
are published on the Open Season Catalogue The government would make any final
of Products for Session 1. Volumes offered In line with its guiding principle of decision.
vary between 1 bcm per year and to 1.6 transparency in sustainable development and Natural gas prices have soared by around
bcm per year of regasified natural gas, with in engaging with civil society, TotalEnergies is 280% in Europe this year and by more than
duration varying between 10 and 24 years 9 publishing on its website the Environmental, 100% in the US, pushing up winter fuel bills.
months. Safety and Health Impact Assessment Low storage inventories, high demand for
In order to increase the offer flexibility, (ESHIA) and the biodiversity implementation gas in Asia, less Russian and LNG supply to
Adriatic LNG gives the opportunity to strategy of the Arctic LNG 2 project, in which Europe than usual, high carbon prices and
operators to submit, for certain types the Company holds a direct and indirect1 outages have led to the spike.
of products and within specific limits, 21.64% stake. Turkey is very highly dependent on
personalized bids by requesting the reduction Based on the ESHIA and in accordance imported gas that flows via pipelines from
of duration and/or annual volumes. with the most stringent international Russia, Iran and Azerbaijan.
Adriatic LNG may organise an additional performance standards, Arctic LNG 2 Local gas consumption is expected to hit
second session by December 16, 2021 in case has defined a set of actions that will be 60bn cubic metres (bcm) this year, almost a
the capacity would not be entirely allocated implemented to minimize the environmental fifth higher than earlier estimates given how
during the first one. In this second session, and social footprint, and to deliver a positive mothballed gas plants have been restarted
available capacity would not be offered as impact on biodiversity and the surrounding to make up for shortfalls in hydro power
products but as single discharge slots. communities. These measures will be production, Reuters wrote.
Total regasification capacity offered monitored by third-party organizations, “Hydro’s share [in energy supply] is at 10%
through the Open Season accounts for 153bn including all of the international credit so far this month, the lowest in a decade,” one
cubic metres, considering existing capacity agencies that will be contributing to the of the sources at a private electricity producer
(1.6bn cm of natural gas by the end of 2034, project and have engaged in a demanding was cited as saying, adding: “Weather forecasts
and then 8bn cm per year starting from dialogue with the project team to reinforce we have suggest a grim winter for hydro, thus
2035), already technically available additional its commitments on the basis of IFC electricity bills.”
capacity (1bn cm/y) – as provided for in (International Finance Corporation) Electricity and natural gas make up 4.4%
the project for additional terminal capacity Performance Standard 6. of Turkey’s consumer price index, meaning
submitted by the company to the Ministry of TOTALENERGIES, September 30, 2021 a 15% price hike across the board would
Ecological Transition and which was excluded increase consumer prices by 0.7 percentage
from the Environmental Impact Assessment points.
on August 18 – and new capacity to be built MIDDLE EAST Asian LNG prices climbed by around
(0.5bn cm/y). 10% this week, with demand continuing to
ADRIATIC LNG, September 28, 2021 Turkey’s gas and power intensify in Asia despite higher prices and
amid a supply crunch. Turkish state energy
Sustainable development prices expected to rise by company Botas was said to be seeking 20
cargoes for delivery in winter.
in the Russian Arctic: up to 15%

Turkey’s natural gas and power prices are

Week 39 01•October•2021 www. NEWSBASE .com P15