Page 8 - LatAmOil Week 29 2020

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Moving to the UAE, Fujairah-based storage company’s Stork II pipeline was due to become
operator Brooge Energy said on July 15 it was operational in 2023, pumping up 13.7 mcm per
near to completing early technical studies for a day of gas in the direction of the Czech Republic
phase-three expansion of its facilities. The pro- and 19.6 mcm per day in the direction of Poland.
ject involves adding an extra 22mn barrels of oil Net4Gas was also looking to build an 18 mcm
storage space and the construction of a 180,000 per day bidirectional pipeline connecting the
barrel per day (bpd) refinery. Czech Republic with Austria, known as BACI, by
Fujairah is a popular hub for storage given 2024. However, Net4Gas has excluded both pro-
its strategic location outside the Strait of Hor- jects in its 2021-2030 development programme
muz. With storage in high demand following published this month. It may build smaller-sized
the COVID-19 pandemic, Brooge has a strong interconnections instead, depending on the
case for pushing ahead with its plans. But first it results of capacity auctions scheduled for 2021.
wants to fully contract out the extra storage on a The operator has also pushed back the launch
store-or-pay basis of these potential pipelines, to 2027-28 for the
Polish link and 2026 for the connection with
If you’d like to read more about the key events shaping Austria. Net4Gas attributes these decisions to
the downstream sector of Africa and the Middle East, its failure to get either project on the EU’s list of
then please click here for NewsBase’s DMEA Monitor. projects of common interest (PCIs), which can
gain access to grants from the bloc’s Connecting
Europe: Nord Stream 2 faces more pain Europe Facility (CEF).
The US has moved closer to imposing tougher Under its new president, Ursula von der
sanctions on Russia’s embattled Nord Stream Leyen, the European Commission has taken a
2 project. US Secretary of State Mike Pompeo tougher stance against fossil fuels. This shift in
announced last week that his department would policy was reflected in the fact that the EC’s latest
remove an exemption protecting the pipeline PCI proposals presented in November included
from a US sanctions package introduced in 2017. far fewer new gas infrastructure projects.
At the same time, another sanctions bill is mak-
ing its way through US Congress. If you’d like to read more about the key events shaping
There is bipartisan support for additional Europe’s oil and gas sector then please click here for
sanctions in both legislative houses. Although he NewsBase’s EurOil Monitor.
has been reluctant to impose broader sanctions
against Russia in the past, US President Donald FSU: Russia goes local
Trump has been unambiguous in his opposition Russia’s Gazprom is maintaining its 40% div-
to Nord Stream 2. idend policy for this year, it has said, despite
However, the consensus is that any new booking its first quarterly loss since 2015 in the
sanctions will arrive too late to thwart the pro- first quarter. The company suffered as a result of
ject, which is now all but 6% complete. Russia is low prices, a collapse in European sales because
expected to resume construction in the coming of coronavirus lockdowns and ruble devalua-
weeks, with two of its own pipelaying vessels cur- tion. It will face even greater difficulty in the sec-
rently on standby off the German coast. ond and third quarters.
In the Czech Republic, gas grid operator Gazprom has sought to reassure investors
Net4Gas has scaled back plans for new gas links that its dividend policy remains unchanged, but
with Austria and Poland after failing to secure these investors remain sceptical, with this senti-
the EU financial support it was hoping for. The ment reflected in the company’s share price.

P8 www. NEWSBASE .com Week 29 23•July•2020