Page 17 - FSUOGM Week 41 2019

FSUOGM
NEWS IN BRIEF
FSUOGM
RUSSIA
Transneft scrubbed
from Russia’s 2020-22
privatisation plan
Russia’s Economist Development Ministry has omitted national pipeline operator Transneft, as well as hydroelectric concern RusHydro and electricity group Rosseti from its privatisation plan for 2020-2022, a ministry official said at a meeting of the State Duma on October 14.
“Concerning the flagship project of
our joi“The draft plan indeed included
such companies as RusHydro, Rosseti and Transneft. Now, after negotiations with
the Energy Ministry, we have prepared a corresponding protocol, we have no plans of including them,” Ivan Bezmenov, director of the ministry’s corporate administration department, said.
October 14 2019
Rosneft to offer RUB15bn in bonds
Russian oil major Rosneft plans to offer at least RUB15bn of 10-year exchange bonds on October 17, a banking source told the Prime news agency on October 15.
The first coupon guidance was set at no higher than 7.15% per year, corresponding to a yield of no more than 7.35% to 4.5-year put. The issue carries quarterly coupons. Technical placement is preliminarily scheduled for October 24.
Russian Regional Development Bank and brokerage company Region are helping organise the placement.
October 15 2019
Lukoil snaps up stake in UAE concession
Russia’s Lukoil has acquired a 5% stake in the Ghasha field concession in the UAE from the Abu Dhabi National Oil Co. (ADNOC), it said on October 15.
The document was signed during a state visit to the UAE by President Vladimir Putin.
The Ghasha project is targeting unrecovered gas, oil and condensate resources in nine shallow-water fields in the Persian Gulf. ADNOC’s partners in the concession are Italy’s Eni with 25%, Germany’s Wintershall
Dea with 10% and Austria’s OMV with 5%. The group plan to produce 40mn cubic metres of gas and 120,000 barrels of oil per day from the site.
October 15 2019
EASTERN EUROPE
Turkey unlikely to face
energy supply shortages
this winter says report
Turkey, with more than three different gas supply sources and access to at least one LNG terminal, is in a good position to cover gas demand for heating over the coming winter, according to a report entitled “Chilly or Snug?” by the ICIS, the world’s largest petrochemical market information provider.
The report assesses the likely impact of
the expiration of the long-term gas transit contract between Russia’s Gazprom and Ukraine’s Naftogaz at the end of this year on consumers in Europe.
The study concluded that Turkey,
with diverse supplies of gas and access
to LNG terminals, can be placed in its
‘safe’ category, similarly to the UK, the Netherlands, Belgium, Italy, France and Poland, Turkey’s state news service Anadolu Agency reported.
Turkey’s gas storage for the winter
was rated at 86% of capacity, earning it a top score for storage provision as well as supplier diversity and LNG terminal access.
Turkey has four pipeline entry points and LNG re-gasification facilities.
Turkey consumes around 50bn cubic metres (bcm) of natural gas per year.
The country imports gas via pipelines from Russia, Azerbaijan and Iran. Last year, the country imported 23.6 bcm of gas from Russia, 7.9 bcm from Iran and 7.5 from Azerbaijan. The rest, amounting to 22.5%, was received in the form of LNG.
Turkey’s LNG imports reached a record high of 7.14 bcm in the first half of 2019, according to Turkey’s Energy Market Regulatory Authority’s (EPDK).
The share of LNG in natural gas imports surpassed 30% for the first time in the January-June period, when there were 23.29 bcm of natural gas imports.
bne IntelliNews, October 13 2019
Mol to receive compensation for tainted oil
Hungarian oil company Mol could soon
agree with Russian oil major Lukoil and gas pipeline operator Transneft on the amount of compensation for the tainted oil it received on the Friendship oil pipeline in April-May, local media writes October 14.
There will be a three-way agreement with Hungarian oil and gas company Mol and Russian pipeline monopoly Transneft, Lukoil CEO Vagit Alekperov said in Saudi Arabia. He said Lukoil plans to stabilize its oil supplies to Mol at between 300,000-500,000 tonnes a month, Reuters reported.
The report did not include the size of the agreed compensation, but local media estimates it would be near $11mn.
In July Transneft reportedly offered $15 per barrel compensation to European costumers for the contaminated oil delivered.
A number of refineries in Europe suspended oil imports via the Druzhba, or “Friendship”, pipeline on April 19 after it
was found to contain high levels of organic chloride, a material used to boost oil output which must be separated before shipment as it can destroy refining equipment.
MOL said in the middle of May it was removing 100,000 tonnes tainted Russian crude from the pipeline and putting it in storage. The crude will be treated and mixed with clean oil to make it usable in future, it said.
bne IntelliNews, October 15 2019
Ukrainian household gas prices fall in Oct
Ukrainian household consumers will pay 4.9% less in October for gas than in September, state gas company Naftogaz said.
Residential bills will come to UAH4,273 per 1,000 cubic metres this month, which is also 32% lower than
in April. Ukraine regulates household
gas tariffs, while its industrial tariffs are market-based. However, the household tariffs are still based on a formula that takes wholesale prices into account with
a two-month delay. Because of this lag, tariffs continue to fall even though European wholesale gas prices have risen dramatically in recent months.
October 16 2019
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