Page 14 - FSUOGM Week 40 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA nuclear power plants, hydropower plants, The country’s major natural gas transport
wind power plants, and solar plants in our system operator Moldovagaz is negotiating
Capitalisation of Russian oil country exceeds 37%, and we obviously a new long-term contract with Gazprom,
which is also its main shareholder.
have to use these competitive technological
major Rosneft beats BP advantages, we have to ramp up are completed and the final price is set, the
"Until the negotiations with Gazprom
implementation of projects in the nuclear
The capitalisation of Russian oil major power sphere, we should develop small- consumer tariff will remain unchanged.
Rosneft on September 27 beat the capacity hydropower plants. The world is Subsequently, we will take measures to
capitalisation of British Petroleum on discussing possibilities of high and low tides protect socially vulnerable layers to offset
London Stock Exchange (LSE) with $90.6bn now, and we definitely have something to some of their costs. We are analysing the
versus $87.7bn, Vedomosti daily writes. work on, we have competitive advantages,” subject of the compensation for the high
In year-to-date terms the share price of Putin said. October price of gas from Moldovagaz's
Rosneft rose by 40% on the LSE and on the At the same time, reducing the negative account," the deputy prime minister said.
Moscow Exchange. impact on climate should not be a serious He added that next week he will go
As reported by bne IntelliNews, boosted burden for businesses and people. All the with Moldovagaz representatives to St.
by high oil prices, Rosneft posted a record situations should become new points of Petersburg to attend the international
$2bn net profit under IFRS in 1Q21 versus growth and technological development gas forum, where they will continue
a $2.3bn loss for the same period of last for the Russian economy, he said.Demand negotiations with the Russian supplier.
year and beating the Interfax consensus for renewable energy resources will grow Asked about the possibility of receiving
expectations by 5%. 5.4-fold from 2020 through 2045, the OPEC alternative gas from Romania, Spinu said
Vedomosti also cites a report by the Bank also said. that the Ungheni-Chisinau gas pipeline will
of America Merrill Lynch, naming Rosneft start operating only next week, but the main
the primary benefactor of an increase in oil question is the price.
prices in Europe, former USSR nations and Peskov says direct gas "Both in Romania and Ukraine, the price
the Middle East. of gas is higher and, in any case, it will not
The report sees Rosneft’s equity fair share sales to Ukraine matter of be lower than the Russian one," he said.
value at $9.9, making about 20% upside to
current prices. Previously in September JP negotiations
Morgan raised Rosneft’s target price by 14% Gazprom pins drop in
to $10, seeing the Vostok Oil project as the Russian gas giant Gazprom has never
major catalyst not yet being priced in by the ruled out direct gas supply contracts with gas supply volumes on
market. Morgan Stanley has the target price Ukraine, it is a matter of discussion and
at $10.5 on Rosneft. viability, presidential spokesman Dmitry customers’ demand
Peskov told reporters on October 4.
“Gazprom has never denied such an Russian gas giant Gazprom pumps natural
Russia has to switch to option. Gazprom is a reliable gas supplier, gas through the Yamal–Europe pipeline
it was, it is, and it will be. Everything is
depending on consumers’ demand and
alternative energy sources a matter of negotiations and economic requests, the company said on Friday, when
viability for the company,” he said.
pumping fell by 75% compared with on
gradually of Russia’s gas supply routes is linked to October 1 according to German gas transit
Peskov also said that diversification
operator Gascade.
Europe is suffering from hysteria and commercial advantage and economic “Gazprom supplies gas basing on the
turmoil on the hydrocarbons market, and performance. customers’ requests in accordance with
Russia has to switch to alternative energy existing contractual obligations. Based on
sources in a smooth manner, President these requests, as well as on the possibility
Vladimir Putin said on October 5 at a to optimize the capacity portfolio, the
government meeting. EASTERN EUROPE company books transit capacity on
“You see what is happening in individual destinations,” the company said.
Europe, there are hysteria and a mess Moldova to pay 44% higher
on the markets. Why is that happening?
Because nobody is serious about that, gas price to Gazprom in Nord Stream 2 AG appeals
someone speculates on the problems of
climate change, someone underestimates October against inclusion into EU
something, and other people start reducing
investment in the producing industries. The price of natural gas paid by Moldova Gas Directive
There should have been a gradual switch, a to Gazprom will be calculated in October
smooth one. Our country has absolutely all under the same formula used for the Nord Stream 2 AG, the operator of Russia’s
the opportunities necessary to avoid that,” contract that expired on September 30, but Nord Stream-2 natural gas pipeline, has
he said. even so, the price will increase by 44% to filed an appeal against a decision of the
Condition of the European energy $790 per 1,000 cubic metres, announced Higher Regional Court of Dusseldorf not
market is a consequence of imbalanced deputy prime minister Andrei Spinu. to exclude the pipeline from the E.U. Gas
decisions and imbalanced development, he The end-user prices will remain flat until Directive, a company representative said in
said. the new contract is sealed, he added. a statement on October 5.
Russia has to speed up construction He also implied gas imports from “We confirm that the Nord Stream 2
of nuclear power plants and hydropower Romania are unlikely soon despite the company has filed an appeal against the
plants. infrastructure being completed, as Russian August 25, 2021 decision of the Higher
“The share of power produced by the gas is cheaper. Regional Court of Dusseldorf to the Federal

P14 www. NEWSBASE .com Week 40 06•October•2021