Page 14 - EurOil Week 36 2021

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Estonia’s VKG proposes strongly rebounded to hit record highs on proposed by the state-owned natural gas
The imports sank as LNG prices
The increase is higher than the increase
parliament drafts climate international markets. supplier Bulgargaz. It has asked for a price
of BGN67.33 per MWh.
The shipments accounted for one fifth of
law Turkey’s total natural gas imports in the first gas for September reflects the trend of
“The increased price of the natural
half of 30.3 bcm, a figure that was up 35%
Estonia’s shale oil producer Viru Keemia y/y. A year ago, LNG imports were 10.3 bcm, continuing growth of the prices of the blue
Grupp (VKG) on September 6 made a while total natural gas imports stood at 22.5 fuel on the international markets,” KEVR
proposal to the political parties represented bcm. noted.
in the Riigikogu, the country’s parliament, In the January-June period last year, LNG KEVR agreed on the gas price hike
and the prime minister’s office to prepare an held a 45.7% share out of the country’s total taking into account the market indices of
Estonian climate law, which sets forth the natural gas imports. the European gas hubs and the average
social agreement necessary for the fulfilment Last year, LNG prices hovered around euro/dollar exchange rate of the European
of the country’s climate goals. $4.5-$5 per million British Thermal Unit Central Bank.
Ahti Asmann, the CEO of the Northeast (mmBtu), compared to around $13-14 per The continuing growth in prices on the
Estonia based shale oil producer, said that the mmBtu this year. international gas markets also affected
Estonian state has supported the European Higher oil prices, increasing carbon prices KEVR’s decision, it said in a statement.
Union’s objective of climate neutrality. and expanded demand in Europe due to The increased price is expected to push
According to VKG, in order to achieve extremely hot summer conditions, as well up the inflation and the sales costs.
climate neutrality, fundamental reforms need as growing consumption with the recovery
to be made in the organization of Estonian from the coronavirus pandemic, all helped
society as a whole through the restructuring hoist LNG prices. German LNG Terminal gets
of transport, waste management, buildings,
agriculture, energy, industry, forestry sectors, new managers
and the management of tax policy. SOCAR ups stake in Turkey
VKG argues that there is a legal vacuum German LNG Terminal is a joint venture
in the domain of climate in Estonia today, subsidiary to 100% between Gasunie LNG and Vopak LNG, as
the filling of which is essential, because in well as Oiltanking, a subsidiary of Marquard
order to achieve the goals of the EU’s climate Azerbaijan’s national oil company SOCAR & Bahls. The planned regasification facility
policy, behaviour in Estonian society must has moved up to 100% ownership in Turkish will have a capacity of up to eight billion cubic
be regulated both across sectors and by subsidiary SOCAR Turkey Energy from metres per year, featuring two 165,000-cubic
assigning tasks to specific areas. 87%, according to Turkey’s Public Disclosure metres storage tanks.
According to VKG, a climate law Platform (KAP). European Commission has granted the
would provide an opportunity to set According to the provided information, project with exemption from network access.
clearly and in detail, among other things, Goldman Sachs International and JP Morgan The project has also recently submitted the
Estonia’s supranational and sector-specific Securities jointly structured a transaction application for planning permission.
climate objectives, their time frame, their in which Goldman Sachs subscribed for Meanwhile, managing director Rolf
relationship with other laws, EU law and 890,574,713 newly issued ordinary shares Brouwer is now returning to the Dutch
international agreements, climate terms, corresponding to 13% of the total issued company Vopak.
appropriate and proportionate restrictions on share capital (post-money) of controlling “Under Rolf Brouwer’s leadership, a stable
the rights and freedoms of the individual in shareholder SOCAR Turkey Enerji (STEAS), project company has been developed which is
order to meet climate objectives, their rights a subsidiary of the State Oil Company determined to tackle the future plans,”
and obligations, and the rules necessary to of the Azerbaijan Republic (SOCAR), commented senior management. “The
ensure compliance with those rights and for a total consideration of $1.3bn, while foundations have now been laid for the project
obligations. simultaneously entering into six-year put to move with further momentum into the
VKG said that climate laws with a similar option transactions with each of STEAS approval procedure phase, followed by its
scope have already been adopted in Europe and Sermaye Investments Limited (SIL), a gradual implementation.”
by Germany, France, Sweden, Finland, the subsidiary of SOCAR. As of September, the German LNG
Netherlands, Denmark, Ireland, Norway, as Terminal will have two new managing
well as Britain. Besides, climate law is being directors. Specifically, the current head of
drafted in several other EU member states.. Bulgaria’s KEVR approves finance and administration Philipp Kroepels
and Michael Kleemiß, who served as a
20.5% natural gas price representative of the shareholding company.
Turkey’s LNG imports drop hike from September and operational management positions in the
Kroepels has held various commercial
41.3% y/y to 6 bcm in 1H on Bulgaria’s Energy and Water Regulatory energy business. In fact, he worked for over
15 years in Germany, Southern Europe, and
record high prices Commission (KEVR) said it has approved the USA. He was responsible for the business
development area for Oiltanking’s parent
an increase in the wholesale price of
Turkey’s liquefied natural gas (LNG) imports natural gas for September to BGN69.40 company, Marquard & Bahls.
dropped 41.3% y/y to 6bn cubic metres (€35.5) per MWh, by 20.5% higher Kleemiß has almost 25 years of experience
(bcm) from in 1H, according to the Energy compared to August when the price was in the LNG business in Germany and the
Market Regulatory Authority (EPDK). BGN57.6 per MWh. Netherlands. He is currently responsible for

P14 www. NEWSBASE .com Week 36 09•September•2021