Page 10 - FSUOGM Week 22 2022

FSUOGM NEWS IN BRIEF FSUOGM

African Union head to meet CPC receives order to hike, Moldovagaz
Putin in Russia for talks rectify violations found by complains

on easing crisis on key Russia’s government Moldova’s energy market regulator ANRE
accepted a 20% rise for the end-user
commodities Caspian Pipeline Consortium (CPC) has natural gas price, to MDL18.6 (€0.91) per
announced that it received a May 27 order
cubic metre, compared to MDL21 asked
African Union head, the Senegalese to rectify violations found by Russia’s for by the Gazprom-controlled local supply
President Macky Sall, is due to meet Russian Federal Service for the Supervision of and distribution firm Moldovagaz.
leader Vladimir Putin in the south-western Natural Resources. Moldovagaz has asked ANRE to endorse
Russian city of Sochi on Friday (June 3) in a The CPC system is the primary route for end-user prices that are 59% higher for
bid to offset an impending food crisis due to shipping Kazakh oil to the West. residential consumers and 67% higher for
the war in Ukraine, Politico reports. The order stemmed from an unscheduled large industrial consumers.
Sall’s office said his visit is aimed at on-site inspection of 14 CPC facility sites The price fails to cover the import
freeing “stocks of cereals and fertilisers, in the Krasnodar Krai, Astrakhan Region, cost. This will result in the accumulation
the blockade of which particularly impacts the Republic of Kalmykia and the Stavropol of financial deviations of MDL3.5bn
African countries,” as well as easing the Krai. (€175mn) by this autumn, Moldovagaz’s
conflict in Ukraine, which “exacerbates food The company said it was reviewing president Vadim Ceban warned.
insecurity” on the continent. the findings and planned to develop a In June, the company will pay $880 per
The visit was organised after an programme to “rectify” them. It did not 1,000 cubic metres in June, down from
invitation by Putin, and Sall will travel with elaborate on the findings, but the issue likely $912 in May. The price paid before June
AU Commission chairperson Moussa Faki relates to the halting of CPC’s operation 1, MDL15.5 per 1,000 cubic metres, was
Mahamat. Earlier this week, Sall made an earlier in the year due to alleged damage at calculated based on an import price of
appeal to European Union leaders to help two of three Single Point Moorings (SPMs) about $620 per 1,000 cubic metres.
ease the crisis on key commodities. in the CPC pipeline system.
Sall has also highlighted that the decision The mooring points allow tankers to
to expel Russian banks from the SWIFT be loaded safely at a significant distance Serbia and Azerbaijan
financial messaging system could hurt food offshore, including in poor weather
supplies to the continent, RFI reported. conditions sign energy cooperation
“When the SWIFT system is disrupted,
it means that even if the products exist, agreement
payment becomes complicated, if not NCOC commences
impossible,” Sall said earlier this week, The governments of Serbia and Azerbaijan
speaking via video link, as quoted by turnaround activities at signed an agreement on cooperation in the
RFI. “I would like to insist that this issue energy sector during Serbian Minister of
be examined as soon as possible by our Kashagan facilities Mining and Energy Zorana Mihajlovic’s
competent ministers in order to find visit to Baku on June 1.
appropriate solutions.” North Caspian Operating Company Serbia recently agreed a new gas supply
According to the UN, Africa faces (NCOC) has commenced a planned deal with Russia on favourable terms,
an “unprecedented” crisis caused by turnaround at offshore and onshore but at the same time Belgrade is looking
the Russia-Ukraine war, compounding facilities at Kazakhstan’s largest oilfield, to diversify its gas imports, including
difficulties facing the continent, including Kashagan, Trend has reported, citing importing Azeri gas via an interconnector
climate change and the COVID-19 NCOC. with Bulgaria, due to be completed in 2023.
pandemic. Both Russia and Ukraine are The turnaround takes the form Mihajlovic said the priorities for
major suppliers of wheat and other cereals of a planned activity involving a full cooperation in the energy sector are gas
to Africa, while Russia is a key producer of production shutdown for a short period of and the energy transition. According to the
fertilisers. time once every few years as dictated by minister, the agreement will additionally
The African Union has also accepted regulatory compliance and business needs. strengthen cooperation, primarily in the
Ukrainian President Volodymyr Zelenskyy's It is meant to assure production system gas sector, given that the Southern Gas
request to deliver a video address to the integrity and safety. Corridor is important for the supply of
AU, according to a statement sent to the The planned duration of turnaround the whole of Europe, and diversification
Senegalese Press Agency (APS). activities is 45 days. of routes and suppliers, the Serbian
After talks in Sochi, Sall is due to government said in a statement.
travel to Accra, Ghana, to take part in the The deputy prime minister pointed out
Economic Community of West African Moldova’s regulator that Serbia has started construction of its
States (ECOWAS) Extraordinary Summit on gas interconnection with Bulgaria, which
the situation in Mali, Guinea and Burkina accepts 20% gas price will be completed next year, and which
Faso on June 4.. will enable the country to receive gas from
Azerbaijan.

P10 www. NEWSBASE .com Week 22 02•June•2022