Page 113 - RusRPTDec21

working to fulfill the order on Monday, 8 November, after the non-working period in Russia ended. Gazprom increased the volumes booked via Ukraine to the long-term contract level, Interfax reported yesterday, but did not book additional volumes, according to TASS.
Oil and gas condensate production will add 0.8% to 517mn tonnes and natural gas production will surge by 12% to 777bn cubic meters as of 2021 year-end, Russian Energy Minister Nikolai Shulginov said on Wednesday.
Coal extraction will move up by 8% against 2020 and its export will grow on account of supplies to Europe and Asia-Pacific countries, Shulginov said. Electricity generation will gain 5.6% to 1.123bn kWh, the minister noted.
The Russian Energy Ministry also expects that 40mn tonnes of motor gasoline and 80mn tonnes of diesel fuel will be produced in 2021, above 2020 year levels. The ministry also made 21 agreements with refineries on upgrade and construction of about 50 new units. "Owing to these agreements effective until 2026, motor gasoline production will grow by more than 4.7mn tonnes and diesel fuel output - by 32mn tonnes," Shulginov said.
Gazprom has not booked the transit capacities of the Yamal-Europe gas pipeline through Poland in 1Q22-3Q22, as follows from the results of the booking auctions on the GSA Platform and Regional Booking Platform, Kommersant reports.
Gazprom's long-term contract for gas transit through Poland ended last year, and the company switched to booking monthly, using this route as a balancing system. We deem the news as neutral for the stock, as the company can the book transit capacity of the Yamal-Europe gas pipeline through Poland at any time during the monthly auctions, if it is necessary to increase gas supplies.
Previously, the Yamal-Europe pipeline was temporarily switched to physical reverse mode (meaning that Poland started buying gas from Germany) (see our Morning Comment of 1 November).
On Tuesday 2 November, the price of the futures for the day-ahead TTF spot index on the ICE Futures increased 12% to $836.60/kcm.
The launch of Nord Stream-2 may be delayed until May 2022, reported Bloomberg. “If regulators want to use all the time allotted for the project, it can be approved no earlier than May 8, 2022”, the agency said. Earlier, Russian officials said that the Nord Stream-2 gas pipeline supply could begin "the next day" after the project is approved. It is noted that the Federal Network Agency of Germany must issue a draft decision on certification by January 8, after which it will be submitted to the European Commission. Experts have to assess whether the pipeline complies with EU market rules, which prohibit one company from being both the owner of the pipeline and the supplier of gas.
Gazprom continues to pump into underground gas storage facilities (UGS) to replenish the fuel volumes taken this season and create a record operating reserve of 72.638bn cubic meters of gas, Russian media informed.
113 RUSSIA Country Report December 2021 www.intellinews.com