Page 9 - FSUOGM Week 32 2021
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FSUOGM POLICY FSUOGM
Russia weighs up LNG options for Kamchatka
RUSSIA
It is not yet clear which company will provide the gas.
RUSSIA is looking to provide LNG to remote areas in the Far Eastern region of Kamchatka, although it is yet to arrange where the gas will come from, Kommersant reported on August 9.
The original plan was for Novatek, owner of the 17mn tonne-per-year Yamal LNG plant, to supply the gas. But according to Kommersant, the company has said it does not have the spare volumes. The government has proposed that Gazprom should provide a portion of the 2.9mn tonnes per year of LNG that it buys from Yamal LNG but those volumes have been booked under a long-term contract with Indian LNG importer Gail.
Gazprom has therefore suggested to the gov- ernment that the gas could be obtained from Arctic LNG-2, Novatek’s second liquefaction plant which it aims to launch in 2023. The latter company is, however, reluctant to do so, because of the low gas prices in Kamchatka, where it is constructing an LNG transhipment terminal.
Initially, it was proposed that boil-off gas gener- ated at this terminal would be supplied to Pet- ropavlosk-Kamchatksky, although this would have required the construction of a 140-km pipeline at a cost of RUB120bn ($1.6bn), which was considered unacceptable, Kommersant said.
The government had considered using budget funds to cover this expense, while also covering the loss that Gazprom incurs on gas sales in Kamchatka. The plan is to convert boilers in the region from fuel oil to cheaper natural gas, but heating tariffs in Kamchatka are subsidised and the energy ministry has concluded that it would be impossible to make a return on the necessary investments.
Russia is preparing to embark on a $25bn, 10-year gasification programme, which it hopes to finalise by the end of the year. The aim of the programme is to increase energy access, reduce energy costs and cut emissions by replacing fuel oil and coal with cleaner gas.
UK imposes sanctions on Russian billionaire Gutseriev
RUSSIA
The move comes two and a half months after Belarusian authorities forced a plane belonging to Ryanair to divert to Minsk airport.
THE UK has imposed sanctions on Russian bil- lionaire Mikhail Gutseriev, the owner of Russ- neft and various other oil assets, for his support for Belarusian President Alexander Lukashenko.
The move, announced on August 9, comes two and a half months after Belarusian author- ities forced a plane belonging to Irish carrier Ryanair to divert to Minsk airport, apparently so that they could capture an anti-government pro- testor. Gutseriev’s companies continued supply- ing Belarus with oil during 2020, even as other Russian suppliers halted their deliveries because of a dispute over pricing. A long-time friend of Lukashenko, Gutseriev also has potash assets in Belarus.
The UK government described Gutseriev on August 9 as “one of the main private investors in Belarus and a longstanding associate of Alexan- der Lukashenko.”
“Gutseriev has provided support for the gov- ernment of Belarus, including through use of his business interests,” it said.
The UK also said it was imposing new avi- ation measures to prevent Belarusian air carri- ers from overflying or landing in the UK, trade
measures on the country’s potash, petroleum products and other key exports, as well as finan- cial measures. The EU imposed similar sanctions in June, in response to the Ryanair incident, also targeting Gutseriev specifically. The Lukashenko regime has been condemned in the West for its actions in last year’s disputed presidential elec- tion and its subsequent crackdown on the oppo- sition movement.
“These measures represent a significant addi- tional step in bringing pressure to bear on the Lukashenko regime,” the UK government said. “They are carefully targeted to build pressure on Lukashenko, state institutions and those around him to change behaviour, while minimising, as far as possible, any unintended consequences on the wider population in Belarus.”
Belarus relies on exports of oil products and potash for the bulk of its revenues. EU statistics show that the Union imported €1bn ($1.2bn) of oil and petroleum products from Belarus last year, and the volumes would likely have been much higher had it not been for the pandemic. It also imported €1.2bn of chemicals including potash.
Week 32 11•August•2021 w w w . N E W S B A S E . c o m P9
