Page 9 - EurOil Week 29 2022

EurOil PIPELINES & TRANSPORT EurOil

Bulgaria’s Overgas pens

MoU for US LNG

BULGARIA BULGARIA’S Overgas, part-owned by US-based built to run on both gas and coal. But first the
Linden Energy, has penned a memorandum of facility must undergo repair, as since its comple-
Vlora LNG is still at an understanding (MoU) with US LNG ship oper- tion in 2009, it has remained offline because of
early stage of planning. ator on acquiring 1bn cubic metres per year of technical faults in its design. There is also a line to
natural gas from the latter’s planned regasifica- connect the Vlora LNG terminal with the South-
tion terminal in Vlora in south Albania. ern Gas Corridor (SGC), which flows Azeri gas
The deal paves the way for the two sides to into Southeast Europe, via a pipeline running to
negotiate a 10-year sales and purchase agree- Fier.
ment for the gas supply. Given that the Vlora LNG project is still at an
Vlora LNG – a project being developed early stage of development, its capacity has not
jointly by Excelerate, ExxonMobil and Alba- been decided upon, and its participants have not
nia’s energy ministry – is set to play a key role disclosed cost estimates.
in Albania’s plan to diversify its energy system “For many countries in Europe’s Southern
by importing natural gas. The country currently Gas Corridor, flexible access to LNG remains
relies almost entirely on hydropower, which puts critical to ensuring their energy security,” said
it at risk of shortages during times of drought. It Excelerate’s commercial vice president, Oliver
also is playing a role in Washington’s efforts to Simpson. “Integrated LNG projects like the
expand the access of US exporters in the Balkan Vlora terminal are a logical solution for meeting
region, which is heavily dependent on Russian the urgent energy needs of Bulgaria and other
gas at present. Balkan and European countries linked to the
The project is currently progressing through Southern Gas Corridor. We look forward to
the second phase of a feasibility study, following working with Overgas and believe this agree-
initial approval from Albanian authorities in Jan- ment is the first of several that will address the
uary. It is expected to fuel a 100-MW thermal lack of supply diversity in the region.”
power plant (TPP) in the port of Vlora, that was Bulgaria lost access to Russian gas supply

Gazprom declares force majeure

on supply contract

RUSSIA RUSSIA’S Gazprom has declared force majeure it is due to return to operation on July 21 after 10
on gas supplies to at least one of its customers, days of routine maintenance work.
Gazprom has said it Reuters reported on July 18, citing a letter from According to Moscow-based Kommersant,
expedcts Siemens to the company it had seen. the turbine was delivered via plane to Germany
continue servicing its Dated July 14, Gazprom said in the letter on July 17. Earlier the newspaper had reported
turbines. that it was unable to fulfil its supply obliga- that the turbine would be sent on a ship, which
tion because of “extraordinary” circumstances would have taken considerably longer. Kommer-
beyond its control. The letter is related to sup- sant notes that it will take a further five or seven
plies via the Nord Stream 1 pipeline, which deliv- days for the turbine to arrive at the compressor
ers Russian gas to Germany and other major station in Russia, assuming there are no logisti-
markets in Central Europe under the Baltic Sea. cal or customs problems. A further three or four
Gazprom cut gas flow via Nord Stream 1 by days will be required to reinstall and commission
60% in June, resulting in a number of European the unit, suggesting that Nord Stream 1 will not
buyers claiming a reduction in deliveries. While be operating at full capacity until the end of July
European leaders said the cut was politically at the earliest.
motivated, Gazprom cited technical problems Gazprom said on July 16 it expected Siemens
relating to Siemens’ failure to return a turbine to continue servicing turbines needed for the
to the Portovaya compressor station in Russia reliable operation of Nord Stream 1. Canadian
that had been sent to Canada for repairs, due to press have reported that Gazprom is due to send
sanctions. another six to Canada for repair over the next
Nord Stream 1 is now offline completely, but two years. ™

Week 29 25•July•2022 www. NEWSBASE .com P9