Page 12 - FSUOGM Week 09 2022

FSUOGM NEWS IN BRIEF FSUOGM

contractors have been undertaken in the by 117%, in December - by 122%. that the prices of gas and basic fuels in
Russian Federation (21.0%), followed by Croatia would not rise despite the war in
Turkmenistan (11.0%), Iraq (6.9%), and Ukraine, and that the energy supplies will
Libya (6.5%).” not be disrupted.
Algeria ready to hike of energy prices.
Croatia has frozen fuel prices due to the
OPEC+ continues to compensate Europe for
undersupply in January extra gas, says Sonatrach Gazprom could stop

The OPEC+ countries fulfilled the head supplies to Bulgaria, energy
agreement to limit oil production by
129% in January, thus lagging behind the Algeria’s state-owned energy firm minister says
permitted production level by 0.97mn Sonatrach said it is ready to supply the
barrels per day, according to the report EU with extra gas amid the Ukraine crisis There is a risk that Russian Gazprom may
prepared for the meeting of the OPEC+ as the European countries which usually stop supplies of natural gas to Bulgaria’s
technical committee. depend on the Russian gas flow face state-owned gas supplier Bulgargaz, Energy
OPEC countries completed the deal by potential gas shortages, the firm’s CEO, Minister Aleksandar Nikolov said in an
133%, their production level lagged behind Toufik Hakkar, pointed out in an interview interview with bTV on February 27.
the designated quotas by 692,000 b/d, while with daily Liberte. Bulgaria imports more than 70% of its
non-OPEC countries produced 280,000 b/d The extra Algerian gas will flow to the natural gas from Russia and would be hard
less than the permitted level, fulfilling the EU via the Transmed pipeline linking hit in case those supplies stop.
agreement by 123%. In general, in January, Algeria to Italy, Hakkar said, noting “Of course, there is a risk of Gazprom
OPEC+ countries increased production that the extra LNG flows will be offered stopping the supplies to Bulgargaz but any
by 250,000 b/d compared to December, after domestic demand and contractual actions from the Russian side cannot be
of which OPEC countries increased engagements are met. predicted,” he said.
production by almost 200,000 b/d, up to The Transmed pipeline, jointly operated Nikolov added that the exclusion of
23.86 million b/d, and non-OPEC countries with Italy’s Eni, has a capacity of some Russia from SWIFT by itelf would not stop
by 55,000 b/d, up to 15.66 million b/d. 32bn cubic metres per year – four times the supplies.
Of the OPEC countries, Angola and that of the Medgaz pipeline to Spain. Some “The first main reason to comment on
Nigeria are still the most behind - by capacity, nearly 10mn cubic metres of the that topic is whether there is a desire for
255,000 b/d less than the designated quotas, pipeline, is still unused. supply and a risk for it to be interrupted.
Saudi Arabia produced almost 90,000 b/d Algeria accounts for about 11% of Then comes the method of payment and the
less than the allowed level. Among the non- Europe’s gas imports. Algerian LNG can ability to pay,” Nikolov said.
OPEC countries, Azerbaijan (-66,000 b/d), also be transported via tankers. Existing He added that a meeting of the EU’s
Malaysia (-140,000 b/d) and Russia (-85,000 liquefaction plants are only operating at energy ministers will be held soon to
b/d) are lagging behind. Thus, Russia and 50-60% of capacity. discuss all possible risks concerning the
Saudi Arabia produce almost at the same Last month, Sonatrach said it would supplies and their possible delay.
level - 10.036 million barrels per day, having invest $40bn into oil exploration, Nikolov also said that no sharp rise
completed the deal in January by 110%. production and refinement, as well as gas in inflation is expected as Bulgaria is
The OPEC+ Technical Committee at its prospecting and extraction, until 2026. producing all electricity it needs. Prices
meeting on March 1 will review the market would rise, but not at shocking levels, he
assessment and the level of execution explained.
of the deal. It will submit the results for Croatia’s Krk LNG to secure
consideration by the OPEC+ Ministerial
Monitoring Committee. Further, they enough gas amid sanctions Biden imposes sanctions
will be evaluated at a full-scale OPEC +
ministerial meeting scheduled for March 2. on Russia, PM says on Nord Stream 2 firm
Since August 2021, OPEC+ has
decided to increase oil production quotas Croatia’s floating LNG (FLNG) terminal President Joe Biden has implemented
by 400,000 bpd every month. Coalition off the island of Krk will secure enough sanctions on the Russian company that built
ministers meet every month to tailor this gas in case Russia stops natural gas the Nord Stream 2 gas pipeline, running
decision to market conditions. However, deliveries following the sanctions imposed from Russia to Germany via the Baltic
the agreements have never been changed on Moscow after it invaded Ukraine, Sea, the Kyiv Independent reported on 23
– despite the fact that oil consumers, in the government sad in a statement on February.
particular China, India, and the United February 27 Biden’s announcement came a day after
States (which is also the largest oil The terminal, with annual import Germany suspended the controversial
producer), have asked OPEC + to increase capacity of 2.6bn cubic metres, is a Kremlin-led project on 22 February in
supply even more due to strong price strategic project for Croatia as it will retaliation for Russian military aggression
increases. improve security of supply for Croatia and in Ukraine.
Moreover, OPEC+ is undersupplying other countries in the region. The pipeline has been fully constructed;
oil to the market more than planned, due Prime Minister Andrej Plenkovic said however, it was awaiting regulatory review
to accidents and repairs in a number of in the statement that the terminal secures from the German Federal Network Agency
countries, as well as a lack of investment in Croatia alternative sources of natural gas before it could become operational.
recent years. Thus, in August the transaction supplies. If the review had been passed, the
was executed by 119%, in September - by Croatia’s Economy and Sustainable pipeline would have given Moscow the
115%, in October - by 116%, in November - Development Minister Tomislav Coric said possibility of transferring 55bn cubic metres

P12 www. NEWSBASE .com Week 09 02•March•2022