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storing CO2 underground, and how it is to be applied, by 1 February 2022. Gazprom Neft and the Orenburg authorities are to work out the required support measures on CO2 CCS by 1 April 2022. CCS projects are getting more traction, with MinEconomy expecting them to be one of the solutions for sectoral decarbonisation. At this stage, there are O&G companies exploring this option.
Gazprom and Rosatom are to consider switching gas transportation GPUs to nuclear power, Kommersant reports. Currently, all gas pumping units (GPU) at Gazprom’s trunk pipelines use gas turbines for power. Switching to zero-carbon nuclear power might help reduce Gazprom’s carbon footprint to gain favour with European consumers. The discussion applies to GPUs of 25MW or more, along the northern gas transport corridor, in the longer term. This step might require the construction of a new nuclear power plant and grids in Western Siberia. While positive for Gazprom’s carbon footprint, it is likely to raise the company’s opex considerably. We remind readers that selected EU countries (e.g. Germany) are opposed to nuclear power on their soil and have tried to block its inclusion into the EU’s green taxonomy.
Rosneft and CNPC have signed a memorandum of cooperation in low-carbon development. The companies are to cooperate on reducing GHG and methane emissions, raising energy efficiency, and a CCS.
9.1.11 Metallurgy & mining sector news
Steelmakers oppose FAS plans to hike steel transportation tariffs.
Vedomosti reported that Alexey Mordashov (the head of the Russian Steel Association) and Vladimir Artyakov (the chairman of the Supervisory Board of the Car Builders Association) complained to Andrei Belousov (Russia’s First Deputy Prime Minister) about the proposal of the Federal Antimonopoly Service (FAS) to again raise the tariff for steel transportation in containers. Note that since beg-2022, the tariff has already risen by 11.9%. Steelmakers initially estimated their additional costs from another growth in the tariff at more than Rb3.0bn ($37.9mn) per year, according to a letter from the Russian Steel Association sent to FAS and the Ministry of Industry and Trade on 30 December.
9.1.12 Transport sector news
In FY21, the Russian railway network carried 40mnt of additional cargo to end up at 1,283mnt. The total amount is the second best result in the last 13 years, after 2018. Moreover, due to changes in logistics, turnover grew to 2.6tn t-km and set a new all-time high. Demand for gondolas was robust due to the strong coal market, rates grew from RUB 700/day at the start of the year to
98 RUSSIA Country Report February 2022 www.intellinews.com