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    Russian Oil and Gas Industry: News #4

    GarryB
    GarryB


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    Post  GarryB Thu Apr 14, 2022 8:06 am

    The EU leadership does not care about the people of the EU, so why should US politicians care about the people of the EU... as long as they do as they are told nothing else is important.

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    Kiko
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    Post  Kiko Fri Apr 15, 2022 11:42 pm

    More countries agree to ruble payments for gas– Russian deputy PM.

    Moscow is awaiting decisions from other importers, Alexander Novak says.

    Several buyers of Russian natural gas have agreed to switch to payment in rubles, Russian Deputy Prime Minister Alexander Novak said on Friday.

    “We expect the decision [to switch to rubles] from other importers,” Novak added, in comments published in the ministry’s magazine, without disclosing the identities of the customers who have already switched.

    The deputy PM noted that EU countries will likely not be able to completely replace Russian energy in the next 5-10 years. It is impossible to talk about guaranteeing Europe’s energy security without Russian resources, he said.

    Russian President Vladimir Putin said on Thursday that some Western countries are failing to pay on time for deliveries of Russian energy. Last month, Putin signed a decree that requires a new payment procedure for Russian gas starting on April 1, for buyers from hostile nations. The measure concerns countries that have imposed sanctions on Russia and have frozen its foreign reserves.

    Russia has instructed buyers operating in countries designated as “unfriendly” to open two accounts in Russia’s Gazprombank, one in euros and one in rubles. Payment for gas would go to the euro account, after which the bank would exchange it into rubles. State-owned Gazprom will consider payments complete once the rubles arrive.

    Hungarian Foreign Minister Peter Szijjarto said this week the country is ready to pay for Russian gas in accordance with the proposed scheme. Szijjarto added that his country does not believe this violates the EU’s sanctions regime.

    On Friday, Armenia’s economy minister, Vahan Kerobyan, told Russian media outlet RBC that Yerevan has made several payments for natural gas in rubles.

    https://www.rt.com/business/553939-countries-ruble-payments-gas/

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    GarryB
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    Post  GarryB Sat Apr 16, 2022 4:31 am

    It is actually quite clever because it gives control of the conversion to the Russian bank, but means they can essentially be paying in Euros but rubles are involved in the transaction creating traffic and use for the rubles.

    Also if the west gets nasty the bank can freeze the accounts or refuse to transfer the euros so the rubles don't get paid and Gazprom can turn the gas taps off... not that they are the unreliable entity in this arrangement.
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    Russian Oil and Gas Industry: News #4 - Page 2 Empty Akademic Cherskiy pipelayer - almost there

    Post  Gazputin Tue Apr 19, 2022 10:31 am

    I've been watching with interest this ship's voyage from Europe to Vladivostok .... all the way around South Africa
    it is going to lay the pipes for Power of Siberia 3 ... or Far Eastern Route
    the Sakhalin Island one.... to China

    anyway its almost there ...

    was 1/2 expecting the US to intercept it
    but then I guess it probably had a Rus hunter killer sub trailing it ?

    https://www.vesselfinder.com/vessels/AKADEMIK-CHERSKIY-IMO-8770261-MMSI-273399760

    Gazprom gave details about the deal in its announcement.

    Russian gas from its far east island of Sakhalin will be transported via pipeline across the Japan Sea to northeast China's Heilongjiang province, reaching up to 10 bcm a year around 2026, said the Beijing source, who asked not to be identified.

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    Post  JohninMK Tue Apr 19, 2022 11:59 am

    Gazputin wrote:I've been watching with interest this ship's voyage from Europe to Vladivostok .... all the way around South Africa
    it is going to lay the pipes for Power of Siberia 3 ... or Far Eastern Route
    the Sakhalin Island one.... to China

    anyway its almost there ...

    was 1/2 expecting the US to intercept it
    but then I guess it probably had a Rus hunter killer sub trailing it ?

    https://www.vesselfinder.com/vessels/AKADEMIK-CHERSKIY-IMO-8770261-MMSI-273399760

    Gazprom gave details about the deal in its announcement.

    Russian gas from its far east island of Sakhalin will be transported via pipeline across the Japan Sea to northeast China's Heilongjiang province, reaching up to 10 bcm a year around 2026, said the Beijing source, who asked not to be identified.

    Going home to the Far East after its holiday in the Baltic.

    As you say, that long way round route does allow for a suitable escort. On her way west she had surface warships with her all the way.
    Kiko
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    Post  Kiko Mon May 16, 2022 6:42 pm

    Nuclear weapons in economic warfare, by Gleb Prostakov for VZGLYAD. 16.05.2022.

    If, for one reason or another, excess volumes of Russian oil cannot be sold on Asian markets, we can talk about reducing production, which, as you know, will not be able to be restored quickly. Such a scenario is fraught with the emergence of a global shortage of energy resources in the long term.

    In recent days, the contours of the energy front in the confrontation between Russia and the West have become clearer. In early May, Gazprom finally entered the sanctions war by outlawing its subsidiaries in Germany (Gazprom Germania group of companies), which were previously subject to external management by the German government. Since May 11, these companies - distributors, operators of gas pipelines and gas storage facilities - have not received the Russian resource. Thus, the monopoly nullified the value of the assets actually confiscated from it.

    Even more interesting is the situation with the transit of Russian gas to the EU. Two main routes for pumping gas - through the Yamal-Europe gas pipeline and the Ukrainian gas transportation system - failed. Back in March, Warsaw announced its refusal to buy Russian gas from 2023, hoping to compensate for losses through American LNG coming through the terminal in Svinouste, as well as reverse gas supplies through the same Yamal-Europe gas pipeline from Germany and France. Deliveries to Poland, however, ceased already at the end of April due to the refusal to pay for gas in rubles.

    And on May 11, gas transit through Poland also stopped due to the imposition of Russian sanctions against the EuRoPol GAZ company, which owns the Polish section of the Yamal-Europe gas pipeline. This decision was also made ahead of schedule: gas transit through the Polish section of the Yamal-Europe pipeline was supposed to stop from the third quarter of this year - Gazprom did not reserve the capacity of the Polish section of the pipeline after the second quarter.

    Even before the events in Ukraine, Poland actively opposed the implementation of the Nord Stream 2 project, hoping to become a major gas distribution hub in Europe due to the gas pipeline passing through it and the presence of a large offshore LNG receiving terminal. Now Poland has lost not only transit, but also supplies of Russian gas for its own needs. In the short term, Warsaw plays into the hands of a larger filling of its own gas storage facilities in comparison with the average European one. However, this trump card will play only if the current gas supplies to the country remain at the same levels, which is unlikely given that the specter of a gas shortage looms in Europe.

    Since May 12, difficulties have also arisen in the Ukrainian section of gas transit, which until now has not had a visible effect of hostilities. The operator of the Ukrainian GTS, referring to the fact that one of the two gas measuring stations (GMS "Sokhrovka" in the Luhansk region) is under the control of the Russian armed forces, stopped the passage of gas through it. Gazprom refused to transfer the lost volumes of gas to another direction, in connection with which there was a threat of a reduction in gas transit through Ukraine by 30%. Gazprom's surprisingly calm reaction to the initiative of the Ukrainian side suggests that this situation is perceived by both sides as a winning one. Ukraine refuses already paid transit under the pretext of force majeure, Russia receives an excuse to reduce gas pumping to the EU.

    Against the backdrop of the blocking of the Yamal-Europe pipe and the threat of a significant drop in transit volumes through the Ukrainian GTS, the news from Switzerland looks interesting. More precisely, from the Swiss canton of Zug, where Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline, is registered. So, on May 10, it became known that the court suspended the company's bankruptcy proceedings until September 10, while providing it with full protection from creditors' claims. The buried project of a gas pipeline along the bottom of the Baltic Sea can be unexpectedly revived at the initiative of the European Union if transit through existing pipes becomes a stake.

    There is also confusion on the oil front. The sixth package of EU sanctions against Russia, expected at the end of April, has stalled. The reason is the disagreement of the member countries on a key issue: the imposition of an embargo on Russian oil. Hungary, the toughest opponent of the embargo, explains its decision by the EU's lack of a plan to compensate Budapest for losses related to the cut-off in supplies. Largely dependent on Russian oil, Slovakia and the Czech Republic also oppose the embargo, but from a softer position, demanding for themselves a delay in the entry into force of this decision. At the same time, it is becoming increasingly clear that an incomplete embargo will simply create a competitive advantage for the re-export of Russian oil by those countries that can avoid the bans.

    The other day, the British Financial Times, citing the EU energy transition project, reported that ensuring the energy independence of the European Union from Russia will require an additional 195 billion euros over the next five years. Moreover, these are only direct costs associated with the cessation of supplies, which do not include the many times higher costs that should be directed to the construction of new LNG terminals, investments in green hydrogen and other projects to diversify energy sources. With the rapidly deteriorating economic situation in the EU, simultaneously waging a sanctions war with Russia and implementing a costly energy transition could be a daunting task.

    As for Russia, the decline in oil and gas supplies to the EU is more than compensated for by rising prices. Thus, according to Bloomberg, citing a report by the International Energy Agency, since the beginning of 2022, Russia has increased its oil revenues by 1.5 times. If, for one reason or another, the excess resource fails to be sold on Asian markets, we can talk about reducing production, which, as you know, cannot be restored quickly. Such a scenario is fraught with the emergence of a global energy shortage in the long term, and this is a kind of nuclear weapon in an economic war.

    https://vz.ru/opinions/2022/5/16/1158227.html

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    Kiko
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    Post  Kiko Thu May 19, 2022 9:34 pm

    Russia restores oil export volumes— Novak. 19.05.2022.

    The Deputy Prime Minister noted that Russia increased oil production in May by 200,000-300,000 barrels per day after the decline in April.

    Russia is restoring oil exports, it is impossible to talk about a crisis in the industry, Russian Deputy Prime Minister Alexander Novak said on Thursday.

    "We are in constant contact with our oil and gas companies and we do not see any serious problems that would indicate that our industry is in some kind of crisis. Yes, we received a certain shock that allowed us to find new balance points and enter new export opportunities, including redirecting energy resources to new markets, creating new supply chains. We are looking for new partners, additionally solving financing issues - the problems that the industry has faced due to sanctions," he said.

    He added that Russia increased oil production in May by 200,000-300,000 barrels per day (bpd) after the decline in April. In June, the recovery of production will continue, Novak said. "In March-April, as a result of the shock, we saw a slight decline in production and oil refining - around 10-14%," he said.

    "We have already started to rebound in May and we see that production is already increasing. In April we reduced production by around 1 mln bpd and in May, we already increased it by 200,000-300,000 bpd. And we expect that recovery will also continue in June," Novak added.

    According to the forecast of the Ministry of Economic Development, in 2022, Russian oil exports will decrease by 1.2% to 228.3 mln tonnes after 231 mln tonnes in 2021 and to 224.8 mln tonnes in 2023. In 2024-2025, exports are expected to grow to 228.1 mln tonnes and 229.5 mln tonnes, respectively.

    https://tass.com/economy/1453301.

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    Post  Kiko Fri May 20, 2022 1:20 pm

    Media: Gazprom's superprofits fully paid off Nord Stream 2, 20.05.2022.

    Against the backdrop of a sharp rise in gas prices, Russia in 2022 can receive a record $ 100 billion for deliveries to Europe, Gazprom's superprofits fully paid off the Nord Stream 2 project, columnist Vincent Colin writes in an article for the French edition of Echos, citing Citi analysts.

    The author of the publication noted that EU countries send $200 million to Gazprom daily, despite "sanctions, loud statements and embargo promises," RIA Novosti reports .

    “Thanks to the surge in prices, Russia should get $100 billion for gas shipped to Europe this year, nearly double what it was last year, when prices were already high. And this is without taking into account income from oil, coal and other raw materials,” Colin said.

    In his opinion, Russia has won the first round of the "energy battle" because even if the European Union starts buying a little less gas, the jump in prices will compensate for the drop in supplies. “By threatening [Russia] with an embargo but not taking any action, the Europeans have fallen into a trap, and [Russian President] Vladimir Putin is gaining the upper hand in this situation,” the article says. The author also expressed the opinion that Gazprom's superprofits fully paid off the Nord Stream 2 gas pipeline.

    https://vz.ru/news/2022/5/20/1159284.html

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    Post  lancelot Fri May 20, 2022 2:01 pm

    I think Poland had already paid for Nord Stream 2 with their silly little lawsuit to change the gas pricing formula to the European gas market price, instead of being indexed to the oil price?

    Anyway, the problem isn't Gazprom, they are only supposed to foot half of the bill for the pipeline. The problem is those other European energy companies which are on the hook for the rest. And which Europe now wants to squeeze to lower consumer energy prices. If I was them I would be suing their governments.

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    GarryB
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    Post  GarryB Sat May 21, 2022 9:16 am

    In his opinion, Russia has won the first round of the "energy battle" because even if the European Union starts buying a little less gas, the jump in prices will compensate for the drop in supplies. “By threatening [Russia] with an embargo but not taking any action, the Europeans have fallen into a trap, and [Russian President] Vladimir Putin is gaining the upper hand in this situation,” the article says. The author also expressed the opinion that Gazprom's superprofits fully paid off the Nord Stream 2 gas pipeline.

    The core of the issue is that Putin has not been playing the EU... the US has.... it wants higher gas prices so their gas becomes competitive and they can replace Russia in the EU market for gas supplies even if they don't have the capacity to fill the needs.

    Putin set no trap, the whole situation comes from EU greed and stupidity and US greed.

    Changing from long term contracts to spot prices was always going to ramp up the price of anything. Long term contracts create stability for both sides which enables lower prices and long term planning and management.

    US actions in the Ukraine were designed to start a war with Russia... nazis, bio weapons, the promise of nukes, and the fact that Kiev was going to start something anyway meant Putin would be a fool not to start things himself and therefore get control of the situation... and he is no fool.

    Letting Kiev start a conflict risked lives and control of the battlefield... it risked suffering a Moscow Theatre attack or a Beslan type situation... perhaps an attack on the Crimean bridge for instance.

    Either way... the EU wont get cheap Russian gas ever again, they will redirect it to Asia and the use of gas will expand in Asia because it will be cheaper and so much more convenient than coal because it flows through pipes...

    This situation does not please Putin... he wont be happy losing soldiers to this BS that could easily have been avoided without US meddling to create this very situation, so he will be determined to make sure he gets this right so it is not repeated and needs to be done again.

    But of course the west will continue to blame Putin and Russia for everything... it is their crutch because otherwise they would have to accept and acknowledge their own guilt in creating this situation and rejecting Putins offers for cooperation and trade.

    The cost will be in human lives but also inflation that for a change the west is actually going to start to feel.

    Will they lift their heads out of the sand and wonder why it is this way because the west certainly does not benefit from cutting ties and relations with Russia and then China and gradually more and more of the rest of the world.

    Ahh but the rest of the world is poor and weak, but working and trading with Russia and China how long will that remain the case.... they remained poor and weak because the west wanted it that way... Russia and China became strong and powerful despite the west trying to stop them... can they do the same for the rest of the world too... change is afoot. Good change. Will the west embrace it or try to fight it? This choice will determine the future of the US led west.

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    Post  Hole Sat May 21, 2022 12:48 pm

    Russian Oil and Gas Industry: News #4 - Page 2 Ftnmzg10

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