Page 12 - EurOil Week 29 2022

EurOil POLICY EurOil

Greece, Portugal opposes EU call

for 15% cut in gas consumption

EU GREECE and Portugal have hit back against the Portugal and neighbouring Spain rely very
European Commission’s proposal to cut gas use little on piped Russian gas, using instead LNG
Greece has not by 15% starting in August to counter the threat of supplies that come from the Iberian Peninsula’s
experienced any a cut-off in Russian gas supply, confounding EU many, underutilised regasification terminals.
reductions in Russian efforts to create unity on energy policy. The peninsula also has very little energy con-
supply, and Portugal “The Greek government does not agree in nection with the rest of Europe, with Galamba
and neighbouring Spain principle with the EU proposal for a 15% reduc- describing it as an energy “island.”
are somewhat of an tion in gas usage,” government spokesman Greece’s case is different, as it relies on Rus-
energy island. Giannis Oikonomou told Reuters. sia for 40% of its gas supply, and gas serves as
He was speaking on the same day that the the fuel for two thirds of its power generation.
government rolled out a contingency plan that But unlike other EU states, it has not experi-
proposed organising rotating power outages enced any disruption in supply so far, and it
among Greek regions as a last resort if Russian also enjoys access to both LNG, which comes
gas supply is cut. ashore at a terminal on Revithoussa Island, and
Meanwhile, Portugal’s energy secretary, Joao pipeline gas from Azerbaijan arriving via the
Galamba, said on July 21 that his government Southern Gas Corridor (SGC). It is looking
was “totally against” the EU proposal, as it would to bolster its energy security further with the
mean reducing gas-fired power generation at a construction of a second LNG terminal off the
time when the country is contending with an coast of Alexandroupolis.
extreme drought, limiting how much power its The European Commission wants to see
hydroelectric dams can turn out. all consumers, from public administrations,
Speaking with the Expresso newspaper, the households and the owners of public buildings,
minister described the proposal as “dispropor- to power supplies and industry, take appropriate
tionate and unsustainable”, as it would inevitably measures to cut use by the required 15% up until
result in power cuts. the end of March next year. Brussels has pro-
“Portugal is totally against the European posed regulation that would enable it to declare
Commission’s proposal, because it does not take a “Union Alert” and force mandatory cuts on
into account the differences between countries,” member states if the risk of a gas shortage is
he said. “This cannot apply to Portugal.” severe. ™

NEWS IN BRIEF

Hungarian foreign minister in of gas a day. 2021 under similar long-term contracts since
“In the current market situation, it is
the 1990s. Gazprom delivered 8.6bcm of gas
Moscow to secure additional clear that getting another 700mcm of gas is to Hungary in 2020, down from 10.5bcm in
2019.
impossible without deliveries from Russia,
gas deliveries whether we like it or not,” he said. The energy supply in the coming months, Szijjarto
In addition to ensuring Hungary’s secure
government issued the mandate to buy the
Hungary’s Minister of Foreign Affairs and gas, in addition to volumes, Hungary is said he had also come to Moscow to make
Trade Peter Szijjarto visited Moscow with a getting under the framework of long-term clear that “Hungary wants peace as soon as
government mandate to buy an additional delivery contracts, a week earlier, declaring an possible” and urged an immediate ceasefire
700mcm of gas from Russia in addition to the energy “state of emergency” as gas shortages and peace talks.
4.5bcm under a long-term agreement with in Europe loomed. He added that Hungary does not wish to
Gazprom. Lavrov said Russia would “immediately be “on the periphery”, again, between two
Szijjarto’s visit came on the day, the EU weigh” Hungary’s request for more gas. blocs.
approved new sanctions against Russia. The In September, Hungary’s state energy In addition to meeting with Lavrov,
seventh round of sanctions imposes a ban giant MVM signed a long-term contract Szijjarto held talks with Alexander Novak,
on the purchase, import, export, or transfer, with Gazprom to supply 4.5bcm of gas per Russia’s deputy prime minister in charge of
directly or indirectly, of gold originating in year through Serbia (3.5bcm) and Austria energy, and with Denis Manturov, the deputy
Russia to the EU or any third country. (1.5bcm). The 15-year agreement can be PM for trade and industry.
At a joint press conference with his Russian renegotiated after 10 years. The first five minutes of the negotiations
peer, Sergey Lavrov, Szijjarto said Hungary Hungary covered 80-90% of its gas needs, with Sergey Lavrov were posted on Szijjarto’s
has taken steps to make additional pipeline 9bcm-10bcm from Russia through the Facebook page.
capacity available for the delivery of 20mcm Friendship pipeline passing Ukraine until

P12 www. NEWSBASE .com Week 29 25•July•2022