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later. This initiative would cost somewhere using methane pyrolysis, where gas is passed
in the region of €27-64bn ($31-73bn). But through molten metal, producing solid carbon
the operators estimate that hydrogen could as a useful by-product. So far, pyrolysis is only
be delivered across Europe efficiently, at a used on a very small scale globally.
levelised transport cost of only €0.09-0.17 per Rosatom, on the other hand, wants to pro-
kg per 1,000 km. duce yellow hydrogen, generated from water
Over in the Netherlands, Norwegian engi- using electrolysis, but with the process powered
neering consultancy DNV GL has teamed up with nuclear rather than renewable energy.
with Dutch glass maker Celsian to create a Dutch Whether Russia can establish itself as a com-
consortium to develop a burner technology ena- mercial hydrogen exporter in time to capture
bling energy-intensive industries to move from a part of the European market in unclear. The
gas to hydrogen. EU’s strategy heavily prioritises green hydrogen
These announcements follow the European produced from renewables, and sees other types
Commission’s long-awaited unveiling of a new as only a short-term solution. Embracing hydro-
EU hydrogen strategy, calling for 10mn tonnes gen will also be a costly undertaking for Russia,
per year (tpy) of the fuel to be produced using which is short of revenues following the collapse
electrolysis by 2030. in commodity prices and the launch of an eco-
Over in Norway, state-owned Equinor has nomic support package.
posted its fourth quarterly loss in a row, on Meanwhile, Rosneft has reported the dis-
impairments and upstream losses as a result of covery of a new oilfield at its Vostok Oil project
low prices and production cuts. in the Russian Arctic, estimated to be 146mn
The company booked a net loss of barrels in size. Rosneft claims that its Vostok Oil
$251mn in the second quarter, versus a project could yield as much as 2.3mn bpd of oil
$1.48bn gain a year earlier. Its pre-tax earn- by 2030, but low prices and the initiative’s con-
ings also collapsed to $354mn, from $3.15bn siderable cost raise concerns about feasibility.
a year before. All three of its upstream units Lastly, Gazprom Neft has launched a new
– E&P Norway, E&P International and E&P $1.4bn complex at its refinery in Moscow. The
USA, suffered adjusted earnings losses. Euro+ facility will boost the quality and quantity
But a strong trading performance provided of light fuels such as gasoline and diesel, partly
some relief for the company. at the expense of heavier and less valuable fuels.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for the former Soviet Union’s oil and gas sector then please
NewsBase’s EurOil Monitor. click here for NewsBase’s FSU Monitor.

FSU: Russia drafts hydrogen plan GLNG: All eyes on Asian LNG
Russia has watched with keen interest as gov- Significant developments in the LNG space – in
ernments and businesses in Europe, the main terms of new projects, trends and milestones –
market for its oil and gas, have drawn up plans have largely come from Asia over the past few
to develop hydrogen as an energy source. It is days. These include progress on new LNG-to-
understood that the Russian energy ministry has power projects.
submitted a draft five-year plan to put Russia on Details emerged last week of the LNG-to-power
the road to becoming a hydrogen exporter. It is project being proposed for Vietnam by Chan May
hoped that a finalised national strategy will be LNG, which is considering investing up to $6bn in
ready by the end of the year. a 4-GW power plant, LNG import terminal and
The key players in this drive will be Gazprom storage facilities. The venture is considered likely to
and Rosatom, the ministry expects. Gazprom end up buying at least a portion of its LNG from the
wants to produce so-called turquoise hydrogen US, assuming it goes ahead.

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