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    Russian Oil and Gas Industry: News #3

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    owais.usmani

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    Post  owais.usmani Mon Oct 04, 2021 8:52 am

    https://www.reuters.com/business/energy/uniper-ceo-does-not-expect-nord-stream-2-relief-winter-gas-squeeze-2021-10-01/

    DUESSELDORF, Germany, Oct 1 (Reuters) - German utility Uniper's (UN01.DE) CEO does not expect the Nord Stream 2 gas pipeline to help ease the tight global gas market this winter as an operating licence is unlikely to come quickly.

    The new pipeline, which could allow Russia to double gas flows to Europe via the Baltic Sea, has faced political opposition from Washington as well as Ukraine and Poland, which have both served as transit routes to western Europe.

    While the 1,200 km, twin-track pipeline is technically complete, it has to obtain a transmission operator status from the German energy regulator, a process which started on Sept. 8 and could take up to four months.

    "The certification of the pipeline, as far as I know, will be so late it will probably not be able to help us out this winter," Uniper Chief Executive Klaus-Dieter Mauchbach said.

    After the German regulator completes its inspection, the authority will send a draft decision to the European Commission.

    Uniper, majority-owned by Finnish Fortum (FORTUM.HE), is one of five western companies that have joined up as finance partners in the Gazprom-led infrastructure project (GAZP.MM).

    The others are BASF's (BASFn.DE) Wintershall Dea (WINT.UL), Anglo-Dutch oil major Shell (RDSa.L), Austria's OMV (OMVV.VI) and French energy company Engie (ENGIE.PA).

    Responding market concerns that deliveries had been falling behind and were too low to help keep the market in balance, Maubach said Russia had been a reliable supplier for decades.

    "All contracts we have signed with the Russian Gazprom group are being fulfilled," he told reporters in Duesseldorf, adding that Gazprom was not delivering much more than in the contracts.

    He declined to comment when asked whether the Russian company was unable to, or was choosing not to, deliver more.

    Gazprom has repeatedly said it is supplying customers with gas in full compliance with existing contracts and has pointed to Nord Stream 2's potential role in helping provide additional supplies.

    Uniper's Russian unit, which operates coal and gas-fired power plants, needed to contribute to the company's decarbonisation efforts, Maubach said, adding that there were many possibilities to achieve this including a sale.
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    Post  Kiko Mon Oct 04, 2021 5:04 pm

    Nord Stream 2 pipeline begins filling with gas in preparation for pumping supplies to EU, operators say, as energy crisis worsens

    The first segment of the now-completed Nord Stream 2 underwater pipeline is being filled with gas in advance of final authorization from German regulators to turn on the taps, the company behind the scheme has revealed.

    https://www.rt.com/russia/536552-nord-stream-2-pipeline-begins/

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    Big_Gazza
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    Post  Big_Gazza Mon Oct 04, 2021 11:13 pm

    Kiko wrote:Nord Stream 2 pipeline begins filling with gas in preparation for pumping supplies to EU, operators say, as energy crisis worsens

    The first segment of the now-completed Nord Stream 2 underwater pipeline is being filled with gas in advance of final authorization from German regulators to turn on the taps, the company behind the scheme has revealed.

    https://www.rt.com/russia/536552-nord-stream-2-pipeline-begins/

    On Monday, Danish officials said all the necessary steps had been taken to certify the pipeline and now, as far as they were concerned, it was ready to begin operating. However, it won’t get the green light to begin pumping until Berlin’s regulators give the final say-so. Russian officials have said they hope this will be received within the coming days, and there will be no bureaucratic delays.

    LOL!! So much for needing 4 months for get the approvals done. The Eurotrash were willing to play stupid games, but now that they face a cold winter with low stored resevres and an ever-increasing gas price, they suddenly become reasonable Laughing Laughing Laughing

    There is nothing like freezing in the dark and going hungry to help one focus their mind on what is important and the pointlessness of playing the fool Very Happy

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    Post  JohninMK Tue Oct 05, 2021 12:08 am

    Big_Gazza wrote:
    Kiko wrote:Nord Stream 2 pipeline begins filling with gas in preparation for pumping supplies to EU, operators say, as energy crisis worsens

    The first segment of the now-completed Nord Stream 2 underwater pipeline is being filled with gas in advance of final authorization from German regulators to turn on the taps, the company behind the scheme has revealed.

    https://www.rt.com/russia/536552-nord-stream-2-pipeline-begins/

    On Monday, Danish officials said all the necessary steps had been taken to certify the pipeline and now, as far as they were concerned, it was ready to begin operating. However, it won’t get the green light to begin pumping until Berlin’s regulators give the final say-so. Russian officials have said they hope this will be received within the coming days, and there will be no bureaucratic delays.

    LOL!!  So much for needing 4 months for get the approvals done.  The Eurotrash were willing to play stupid games, but now that they face a cold winter with low stored resevres and an ever-increasing gas price, they suddenly become reasonable Laughing Laughing Laughing

    There is nothing like freezing in the dark and going hungry to help one focus their mind on what is important and the pointlessness of playing the fool Very Happy

    Not quite sunshine. This is the minor Danish section. The important section is German and then when that is OK'ed its off to Brussels.

    You may be right about when they actually get cold weather but for now that is weeks away and the bureaucrats have their power games to play. Take it to the brink and be a hero.
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    Post  kvs Tue Oct 05, 2021 1:10 am

    They will be scrambling to get the gas flow. No amount of hate spew at Russia is going to substitute for gas.



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    Post  Big_Gazza Tue Oct 05, 2021 1:43 am

    JohninMK wrote:Not quite sunshine. This is the minor Danish section. The important section is German and then when that is OK'ed its off to Brussels.

    You may be right about when they actually get cold weather but for now that is weeks away and the bureaucrats have their power games to play. Take it to the brink and be a hero.

    Agreed, so far it is just the Danes, but the important take-home from this is that Eurotrash solidarity doesn't really exist when the shite hits the fan.  The Germans will now be under more pressure to just get it done and let the gas flow, and as for Brussels, scoring geo-political points with Russia is less important to the Eurocrat apparatchiks than the rage of the EU citizenry when the heating turns off and pensioners start to freeze to death...

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    Post  franco Tue Oct 05, 2021 5:20 pm

    All technical requirements for Nord Stream 2's launch met - German regulator

    BERLIN. Oct 5 (Interfax) - All technical requirements for the launch of the Nord Stream 2 gas pipeline have been met, spokesperson for Germany's Federal Network Agency Fiete Wulff told Interfax.

    "To the knowledge of the Federal Network Agency, all the technical requirements for launching Nord Stream 2 have been met, and relevant documents have been submitted to institutions designated by the land law. Therefore, it is possible that one of the lines of the connecting gas pipeline will be launched soon," Wulff said.

    https://interfax.com/newsroom/top-stories/72816/

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    Post  GarryB Wed Oct 06, 2021 5:41 am

    Hoping to push the price of gas down perhaps?

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    Post  lyle6 Wed Oct 06, 2021 5:51 am

    Well, its either that or the flu shot - you know, because everyone would be cold Twisted Evil
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    Post  Big_Gazza Wed Oct 06, 2021 10:26 am

    GarryB wrote:Hoping to push the price of gas down perhaps?

    Undoubtedly Laughing Germans have no intention of freezing in the dark just to make the Poles, Ukrops and Baltic morons happy... Laughing Laughing Laughing Laughing
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    Post  JohninMK Wed Oct 06, 2021 11:52 am

    Upping the ante in Germany. You will spot a couple of my comments there, so I won't repeat them, suffice to say that some on contract pricing are sitting pretty whilst those who went for spot last year are trying to hide that decision.

    You have to feel sorry for the businesses who are tied to spot and are caught up in a maelstrom not of their making.


    A natural gas shortage across Europe has created supply-chain shocks, as seen in the food industry, where problems continue to worsen. European natgas prices are at insane levels, triggering a domino effect of output reduction or closures of fertilizer plants on the continent.

    Last month, two of the U.K.'s largest fertilizer factories producing 45% of domestic demand closed, and one shortly reopened with government aid. By late month, Austrian fertilizer producer Borealis AG slashed ammonia output after the cost natgas compressed margins in an industry facing tight supplies.

    As the dominos fall, SKW Piesteritz, Germany's largest ammonia producer, announced a 20% reduction in ammonia production due to the record-high natgas prices on Tuesday.

       "The level that has now been reached no longer enables economically sensible production, so that we are forced to take this step," the company told Bloomberg in an emailed statement.

       "Without government action, there is a risk of production being halted shortly," the statement continued.

    We've seen this story play out when U.K.'s C.F. Industries shuttered two plants last month because of soaring natgas prices and caused an immediate disruption to the food industry. Then the government swooped in with emergency orders to restart at least one of the plants.

    As a refresher, natgas is used to synthesize ammonia for nitrogen fertilizers for the farm industry, and a byproduct is CO2, used heavily in the food industry, for food packaging to stunning animals at slaughterhouses to bubbly soda pop.


    https://www.zerohedge.com/markets/dominos-fall-germanys-largest-ammonia-producer-slashes-output-amid-energy-crisis

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    Post  kvs Wed Oct 06, 2021 12:50 pm

    That ZH article is anti-Russian propaganda.   It insinuates that Russian gas supplies to Europe dropped by 28% year on year.
    They increased compared to 2020 by 5 billion cubic meters.   The deliveries at some terminal are not equivalent to total deliveries
    since there are are multiple supply points (e.g. Black Sea and Turkey).

    This ZH excrement also claims that the only factor driving gas prices in Europe is Russia as if LNG does not exist. This is yet another
    bald faced lie. US supplies of LNG to Europe fell 17 billion cubic meters compared to 2020. Other LNG supplies fell as well since
    LNG tankers chase the highest prices and have been focusing on Asia since last winter.

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    Post  ALAMO Wed Oct 06, 2021 2:16 pm

    Well, they might have some point, because remember that part of that gas was reversed to Ukraine, pretending to be "European" already.
    This might be the balance they can not find. And doubt if they can find the money for it either Twisted Evil

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    Post  Karl Haushofer Wed Oct 06, 2021 3:03 pm

    Putin: Russia has increased gas supplies to Europe via Ukraine:

    https://www.reuters.com/article/power-prices-gas-putin/russia-is-boosting-gas-supply-to-europe-including-via-ukraine-putin-says-idUSR4N2Q408T

    Russian gas supplies to Europe via Ukraine wlll now exceed the volume that is agreed in the contract.

    This is quite disappointing. I was expecting that Russia – at least once – would play hardball instead of settling for a (totally unneeded) compromise, as Russia under Putin always eventually seems to do. As Russia was holding all the cards it is hard to understand why Putin – once again – disappointingly settled for a compromise.

    With this decision Russia helps to lower the gas price in Europe which eases the pressure in the EU to accept the certification of Nord Stream 2. Now Europe will have more gas in their storages and the gas price will go down, so Nord Stream 2 will not be as much as a necessity anymore as it would have been otherwise.

    And this will also feed Ukraine and its anti-Russian regime. What is the point, Putin? Do you think the West will like you more now? Do you think Russia will be accepted as part of the West after this as you hoped in 2000 when you first became the president?

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    Post  owais.usmani Wed Oct 06, 2021 3:44 pm

    Karl Haushofer wrote:Putin: Russia has increased gas supplies to Europe via Ukraine:

    https://www.reuters.com/article/power-prices-gas-putin/russia-is-boosting-gas-supply-to-europe-including-via-ukraine-putin-says-idUSR4N2Q408T

    Russian gas supplies to Europe via Ukraine wlll now exceed the volume that is agreed in the contract.

    This is quite disappointing. I was expecting that Russia – at least once – would play hardball instead of settling for a (totally unneeded) compromise, as Russia under Putin always eventually seems to do. As Russia was holding all the cards it is hard to understand why Putin – once again – disappointingly settled for a compromise.

    With this decision Russia helps to lower the gas price in Europe which eases the pressure in the EU to accept the certification of Nord Stream 2. Now Europe will have more gas in their storages and the gas price will go down, so Nord Stream 2 will not be as much as a necessity anymore as it would have been otherwise.

    And this will also feed Ukraine and its anti-Russian regime. What is the point, Putin? Do you think the West will like you more now? Do you think Russia will be accepted as part of the West after this as you hoped in 2000 when you first became the president?

    Couldn't agree more with you here. Terribly disappointed in Putin if this is true.
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    Post  Karl Haushofer Wed Oct 06, 2021 3:45 pm

    owais.usmani wrote:
    Karl Haushofer wrote:Putin: Russia has increased gas supplies to Europe via Ukraine:

    https://www.reuters.com/article/power-prices-gas-putin/russia-is-boosting-gas-supply-to-europe-including-via-ukraine-putin-says-idUSR4N2Q408T

    Russian gas supplies to Europe via Ukraine wlll now exceed the volume that is agreed in the contract.

    This is quite disappointing. I was expecting that Russia – at least once – would play hardball instead of settling for a (totally unneeded) compromise, as Russia under Putin always eventually seems to do. As Russia was holding all the cards it is hard to understand why Putin – once again – disappointingly settled for a compromise.

    With this decision Russia helps to lower the gas price in Europe which eases the pressure in the EU to accept the certification of Nord Stream 2. Now Europe will have more gas in their storages and the gas price will go down, so Nord Stream 2 will not be as much as a necessity anymore as it would have been otherwise.

    And this will also feed Ukraine and its anti-Russian regime. What is the point, Putin? Do you think the West will like you more now? Do you think Russia will be accepted as part of the West after this as you hoped in 2000 when you first became the president?

    Couldn't agree more with you here. Terribly disappointed in Putin if this is true.

    Well I hope Reuters is wrong.

    But the same news is all over in Twitter too.

    It seems that Russia once again let its supporters down.
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    Post  Karl Haushofer Wed Oct 06, 2021 3:51 pm

    The way the EU has been treating Russia it would have been more than justified to let Europe freeze in winter. Russia is under no contract to supply any more gas to Europe than it currently does. And with current high prices Russia would have still made a lot of money with gas sales to Europe even with lower volumes.

    I was hoping that Russia would use this opportunity to punish Europe, but deep down inside I knew that in the end Russia would not use it. It never does.

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    Post  kvs Wed Oct 06, 2021 6:10 pm

    Clowns.

    The EU is practically starting a war on Russia over its own screwup. Putin needs to throw these f*cktards a bone.

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    Post  miketheterrible Wed Oct 06, 2021 6:17 pm

    Europe will blame Russia anyway over this deal. They will find a way. I think Russia just doesn't care so long as they get money. They know whatever extra given to Ukraine will be stolen so they don't care. But I would rather starve out Ukraine instead of giving them handouts.

    Russia is the classic case of "just doing business". I don't care for that.
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    Post  Karl Haushofer Wed Oct 06, 2021 6:37 pm

    miketheterrible wrote:Europe will blame Russia anyway over this deal. They will find a way. I think Russia just doesn't care so long as they get money.  They know whatever extra given to Ukraine will be stolen so they don't care. But I would rather starve out Ukraine instead of giving them handouts.

    Russia is the classic case of "just doing business".  I don't care for that.
    I disagree. Russia should use every means that it has to starve Ukrainian regime. Now Russia just will give them more free money.
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    Post  miketheterrible Wed Oct 06, 2021 9:01 pm

    Karl Haushofer wrote:
    miketheterrible wrote:Europe will blame Russia anyway over this deal. They will find a way. I think Russia just doesn't care so long as they get money.  They know whatever extra given to Ukraine will be stolen so they don't care. But I would rather starve out Ukraine instead of giving them handouts.

    Russia is the classic case of "just doing business".  I don't care for that.
    I disagree. Russia should use every means that it has to starve Ukrainian regime. Now Russia just will give them more free money.

    That is what I agreed with. You have to re-read my post. IT is what they do vs what we think they should do.
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    Post  JohninMK Wed Oct 06, 2021 9:13 pm

    As Russia has said that it is fulfilling all contracted volumes then it may well be is selling this increase at spot, if so then it will make a lot of money. The Europeans will still suffer price wise compared to the old contract prices.

    This deal will not stop Europe running out if there is a cold winter. This is due to the particular pressure/volume requirements around refilling the depleted storage. Apparently it is now too late to put any meaningful quantity in.

    Last winter, in addition to extracting from storage NS1 was run at 110% of capacity for a while. This year they have Turkstream in operation as an alternative route. It will be interesting to see how much of NS2 they will need.

    Whatever happens Gazprom is going to make a ton of money out of the Europeans.



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    Post  PapaDragon Thu Oct 07, 2021 12:07 am

    miketheterrible wrote:Europe will blame Russia anyway over this deal. They will find a way. I think Russia just doesn't care so long as they get money.  They know whatever extra given to Ukraine will be stolen so they don't care. But I would rather starve out Ukraine instead of giving them handouts.

    Russia is the classic case of "just doing business".  I don't care for that.

    Is Russia selling this gas at current market price?
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    Post  JohninMK Thu Oct 07, 2021 12:23 am

    Putin's words in the video conference today. Good stuff.

    No mention really of shipping more, no-one has asked yet! Confirmed that the thought that they would meet the minimum through Ukraine, not ship more than it.


    Now, the world economy is recovering well after the past year’s crisis. The demand for energy is growing and, hence, prices are soaring.

    As you know, the global energy market does not tolerate hectic moves and vagaries. Investment plans in this area are long-term. Therefore, any abrupt and rash actions may lead, and, judging by the current market situation, are already leading to serious imbalances like those we are seeing in the European market that has been affected this year by several unfavourable factors all at once.

    First, the rapid post-crisis recovery of the economy has 'heated up' the energy demand.

    Second, gas reserves in many European countries’ underground storage facilities dwindled as a result of the harsh winter in early 2021. I am referring precisely to their underground gas storage facilities, the underground storage facilities of our European partners.

    Third, the production of wind energy declined noticeably later in the summer because of hot and windless weather. It should also be taken into consideration that the energy balance has changed dramatically in Europe over the past ten years. Many countries in the region have given up their coal-burning and nuclear power plants in favour of wind power generation that is heavily dependent on weather conditions.

    And, finally, fourth, the practices of our European partners [are to blame]. These practices have reaffirmed that, properly speaking, they have made mistakes. We were talking with the former European Commission; all of its activities were aimed at curtailing the so-called long-term contracts and at transitioning to gas exchange trading.

    It turned out – and today this is absolutely obvious – that this policy is erroneous, erroneous for the reason that it fails to take into account the gas market specifics dependent on a large number of uncertainty factors. Consumers, including, for example, fertiliser producers, are losing all price benchmarks. All of this is leading to failures and, as I said, imbalances.

    As a result, the gas price has broken all historical records. Today it is approaching $2,000 per thousand cubic metres of gas, which is over ten times last year’s average price. I would like to ask my colleagues to report in detail on the developments.

    In the meantime, I would like to underscore that Russia has always been a reliable supplier of [natural] gas to its consumers all over the world, both in Asia and Europe. Russia always fulfils all its obligations in full – all its obligations, I would like to stress this.

    Right before this meeting, I looked at a reference paper from Gazprom. Our exports outside of the former Soviet republics, primarily to Europe, of course, were at a record high in 2018, dwarfing deliveries to Asia that did not have any serious impact on these figures.

    So, in 2018, we hit a record high of 201.7 billion cubic metres. In 2019, our partners asked for less, so deliveries were slightly lower at 199.4 billion cubic metres. Marked by the pandemic, 2020 saw a decline in European manufacturing, dragging gas exports down to 179.35 billion cubic metres. The economy has been recovering in 2021. In the first nine months, deliveries increased 18.8 billion cubic metres or by 15 percent year-on-year. If this momentum carries on, our fuel exports to Europe, including natural gas, can very well set a new record.

    By the way, Gazprom’s long-term gas export contracts set forth minimum and maximum supply levels, and Gazprom has never refused requests for more supplies from its consumers, as long as they filed the relevant applications. There was not a single instance when Gazprom turned down an application.

    The Federal Republic of Germany is Russia’s biggest European consumer. In the first nine months of 2021, it increased its natural gas imports from Russian by 10.12 billion cubic metres to 131.8 percent compared to the same period last year. Even in 2020, when the overall deliveries to Europe declined year-on-year, we still increased exports to Germany by 4.7 billion cubic metres, which gives us 112.9 percent.

    I have to say that there has been all kinds of speculation on Ukraine’s gas transit system and deliveries through this country. I would like to reiterate that under the contract we have to pump 40 billion cubic metres of gas through Ukraine’s gas transit system per year. In the first nine months of 2021, Gazprom increased its supplies, or should I say transit volumes through Ukraine, by more than eight percent. We have every right to believe that we will exceed our contractual obligations in terms of gas transit through Ukraine.

    Further increasing these volumes does not make economic sense for Gazprom, since costs will also be higher. It is much cheaper to supply gas using the new pipelines, saving us about $3 billion per year for the supply volumes in question.

    In addition, I would like to inform those who actually care about preserving the environment, instead of just using this as a political weapon, that the new pipelines that were launched over the past years or are about to become operational can reduce CO2 emissions 5.6 times thanks to their new equipment. Accordingly, supply volumes go up, while emissions go down. This has to do with the superior characteristics of these pipelines enabling them to pump gas at a higher pressure.

    Everyone must know this....

    I would like to emphasise that the current situation on the European energy market is another clear example of the fact that hasty, let alone politically influenced decisions are unacceptable in any sphere, but especially so when it comes to energy supply on which the sustainable operation of enterprises and the welfare and quality of life of millions depends.

    Therefore, our decisions regarding the development of the fuel and energy complex of our country, Russia, must be prudent, taking into account our national interests and, most importantly, the needs of our citizens, and, of course, they must be sustainable in the long run. We must try to take a look beyond the horizon of not just one decade, but two or three decades."

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    franco
    franco

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    Russian Oil and Gas Industry: News #3 - Page 22 Empty Re: Russian Oil and Gas Industry: News #3

    Post  franco Thu Oct 07, 2021 12:42 am

    Putin instructs Russian energy minister to ensure gas transit through Ukraine is maintained & Gazprom honors existing contracts

    Russian state-owned energy giant Gazprom should honor its existing, controversial, arrangements with Ukraine instead of fully switching to the more efficient Nord Stream pipelines, President Vladimir Putin directed on Wednesday.

    Putin explained that even if paying EU-imposed penalties was more profitable, he preferred to see the continuation of contracts with Kiev. The Russian President's comments came as gas prices reached unprecedented levels across Europe.

    “Gazprom believes it would benefit more from paying a fine to Ukraine and enhancing gas transit through new systems,” he told Energy Minister Nikolay Shulginov, from his residence at Novo-Ogaryovo, outside Moscow, adding that he is asking the energy giant to not pursue that course.

    As the construction of the Nord Stream 2 gas pipeline is almost finished, the Saint Petersburg-based company believes that it would be much more profitable to deliver gas to Europe through the new pipeline system directly from Russia to Germany under the Baltic Sea rather than using old transit route via Ukraine, Putin said.

    The president added that he is aware that, according to Gazprom’s calculations, it would reduce CO2 emissions from gas transit and would be around $3 billion cheaper per year. However, Putin believes that honoring long-term commitments is more important than quick financial gain. "One should not put anyone in a predicament, including Ukraine, despite all the issues linked to Russian-Ukrainian relations at the moment."

    The president also noted that Gazprom’s reputation as an “absolutely reliable partner in all respects” should not be tarnished. Putin asked Shulginov to personally ensure that commitments under the gas transit contract with Ukraine are respected.

    COMMENT: he plays those Eurotrash like a fiddle Twisted Evil

    https://www.rt.com/russia/536775-putin-gas-transit-ukraine-gazprom/

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