Page 112 - RusRPTFeb19

Russia’s Gazprom to invest around $900mn in the expansion Turkish Stream pipeline through Serbia in 2019 Russia’s state-owned Gazprom plans to invest RUB58.8bn ($900mn) on expanding the Turkish Stream pipeline through Serbia in 2019, Kommersant reported on January 24. The 403km pipeline is to pass from the border with Bulgaria to Hungary and be constructed by the end of 2019. Gazprom and the Serbian state-owned gas provider Serbiagas are to invest in the construction of the pipeline on a parity basis through the Gastrans joint venture. Gazprom also plans to spend RUB26bn ($0.4bn) and RUB 17.7bn ($0.26bn) on the offshore leg of the pipeline and onshore transit section in Turkey, respectively. “We do not account for Gazprom’s capital expenses in the Serbian pipeline construction in our forecasts for 2019, so they might increase our capex estimate for Gazprom by 3%. Given that there has been no firm confirmation of demand, as well as the overall uncertainty surrounding the project, the construction of the second line of Turkish Stream (which is supposed to be entirely meant for Europe) could be considered as risky by investors, in our view. Therefore, at this stage we deem this news as rather negative for the sentiment in the name,” Dmitry Loukashov, of VTB Capital (VTBC) said in a note.
• Rosneft
Russia's largest oil company state-controlled Rosneft will drop plans to work in Iran, despite previous investing $30bn and extracting 55mn tonnes of oil with National Iranian Oil Company (NIOC), Vedomosti daily reported on December 12 citing unnamed sources close to the company. Russian oil and gas companies could invest $50bn in development of hydrocarbon fields in Iran, the presidential aide Yuri Ushakov told the press in April 2018. Previous reports claimed that in 2016 Rosneft, Lukoil, Gazprom Neft, and Tatneft oil majors, as well as Gazprom gas giant signed memorandum of understanding with the NIOC. But reportedly Rosneft started winding down the possible cooperation with NIOC in summer 2018 when the threat of the US sanctions against Iran first appeared.
Rosneft Deutschland, affiliate of Russian oil producer Rosneft, has started direct sales of oil products in Germany, the Russian company said in a statement on Wednesday. “Rosneft Deutschland GmbH, a Rosneft subsidiary, started direct marketing operations in order to increase the efficiency,” the company said. “The company sells all refined products produced by Rosneft Deutschland at three refineries in Germany where the company is a shareholder. The products range includes gasoline, diesel, heating oil, jet fuel, LPG (liquefied petroleum gas), bitumen, fuel oil and petrochemical products.” Rosneft has about 500 customers in the country.
Nayara Energy Limited, a joint venture of Russian oil major Rosneft, which owns 49.13%, plans to launch a US $850mn petrochemical plant in India’s city Vadinar in 2022, Rosneft said in a statement on Monday. “The first stage of the Vadinar petrochemical facility development program includes construction of the new facilities, which will allow us to produce up to 450,000 tonnes of polypropylene per year. The project is to be completed in 2022. Preliminary investment will amount $850mn at the first stage,” Rosneft said. Financing will be provided from own funds of the Indian company and a banking loan. The program is undergoing economic feasibility studies, and a final decision on the project will be made in 2019.
• Novatek
112 RUSSIA Country Report February 2019 www.intellinews.com