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Gazprom asks to anchor vessels
to build Nord Stream 2
GERMANY RUSSIA’S Gazprom has requested a permit from would therefore have to be anchored, requiring
Danish regulators for the use of anchored pipe- an additional permit from Denmark.
Russia is expected layers to complete the Nord Stream 2 pipeline, The Nord Stream 2 operating company,
to use two of its own the project’s operator told NewsBase. owned entirely by Gazprom, told NewsBase
pipelaying vessels to Gazprom had striven to finish the pipeline to it had “as a precautionary measure” filed an
complete Nord Stream northern Germany by the end of last year, but amendment to the Danish Energy Agency
2. US sanctions led Swiss contractor Allseas to (DEA), covering “the potential use of pipelay
halt pipelaying in December, with just 6% left to vessels that use anchors for positioning.”
complete. As NewsBase has reported, Russia is This same technique was used in Danish
expected to use two of its own pipelaying vessels, waters to build the first Nord Stream pipeline,
Akademik Cherskiy and Fortuna, to finish the as well as Nord Stream 2 in German waters, the
work. Ship-tracking data shows that both ships company said.
are now stationed at the German port of Mukran, The DEA has not responded to a request for
which Gazprom has been using over the years as comment.
a storage base for Nord Stream 2’s pipes. Russian President Vladimir Putin has said
It is understood that Cherskiy is equipped Nord Stream 2 should start up in early 2021,
with the dynamic positioning system (DPS) more than a year behind schedule. At full capac-
required to work in Danish waters, where the ity it will flow up to 55bn cubic metres per year of
remainder of Nord Stream 2 will be built, but it Russian gas to Gazprom’s customers in Germany
lacks a crane big enough for its 48-inch (1,220- and neighbouring countries. US lawmakers have
mm) pipes. Fortuna, on the other hand, does not proposed additional sanctions to thwart the pro-
have DPS but has a big enough crane. ject, however. EU authorities have also imposed
NewsBase understands that Gazprom’s plan unbundling rules on the pipeline, which may
is to couple the two ships, but there is a risk that require Gazprom to cede control of it and pro-
Cherskiy’s DPS will not work if this is done. They vide third-party access to its capacity.
Turkish gas firms amass $2bn debt to Gazprom
TURKEY TURKISH gas importers have racked up a $2bn pronounced this year, with Gazprom’s sales to
debt to Russia’s Gazprom, sources told the Wall the country plunging 72% year on year in March,
Turkish gas importers Street Journal on June 15, after failing to meet according to the latest statistics published by
have taken a fraction of payments under their take-or-pay contracts. Turkish energy regulator EMRA. Gazprom
the gas agreed in their Take-or-pay contracts require buyers to pay consequently lost its position as Turkey’s top
take-or-pay contracts. for a set amount of gas regardless of whether they supplier, with its share of the market shrinking
actually take that much. Turkish gas demand has to 9.9% from 32.6%. Replacing Russia in the top
seen significant decline in recent years amid an spot was Azerbaijan.
economic slowdown, warmer weather and the Turkey’s unpaid debts to Gazprom have put
government’s drive to bolster the use of domestic the country in a precarious position. In the past
coal in power generation. The country’s Russian the Russian supplier has used such debts as
imports have seen particularly heavy decline, leverage to consolidate its control of a market,
as a slump in LNG prices has made the super- by acquiring infrastructure and other gas busi-
cooled gas much cheaper than piped imports. nesses, or in exchange for political concessions.
According to the WSJ, Turkey’s seven private “We see a 3% upside risk to Gazprom’s mar-
gas importers purchased less than 15% of the ket cap if the monopoly succeeds in receiving the
10bn cubic metres they agreed to buy last year. $2bn payment from Turkish importers, as this
Their take-or-pay contracts require them to pay revenue was not recognised in 2019,” BCS Global
for at least 70% of the contractual amount, but Markets wrote in a research note on June 16.
they have not done so. Gazprom has struggled with weaker sales
Turkish gas imports from Russia slumped by across Europe this year because of the impact
more than a third last year to 15.5 bcm, Gazprom of coronavirus (COVID-19) lockdowns on
data shows. Most of this gas was bought by state demand. It swung to a net loss in the first quarter,
importer Botas. The decline has been even more according to Russian accounting standards.
Week 24 18•June•2020 www. NEWSBASE .com P11