Eru makes first gas shipment to Ukraine from Greece
Ukrainian firm Eru Trading has made the first shipment of gas to Ukraine from Greece.
Only a small volume was delivered as a test shipment, "in co-ordination with European partners", Eru said.
The gas was purchased in Greece, and transported to Ukraine through the Greek, Bulgarian and Romanian transport systems.
Physical deliveries along the route were broadly unchanged in recent days. But 24MW was nominated towards Ukraine from Romania at Isaccea I on 21 August. Nominations in that direction were zero in the previous and following days.
Nominations towards Romania from Bulgaria at Negru Voda I — the continuation of Isaccea I along the Trans-Balkan pipeline (TBP) — climbed by about 24MWh on 21 August from a day earlier, and rose even further in the following days. Nominations in the same direction at Ruse-Giurgiu also rose on 21-22 August from the preceding and following days.
And while nominations towards Bulgaria from Greece varied from day to day, 124MWh of bundled firm capacity was booked at the auction for day-ahead capacity towards Bulgartia at Kulata for 21 August delivery.
Eru plans to sell the supply in the Ukrainian domestic market rather than re-exporting it to Europe, the firm said.
The main goal of this first delivery was to open up the possibility of accessing Greece's 3.6mn t/yr Revithoussa LNG terminal, Eru said. The firm will use this route on a regular basis if it makes economic sense, Eru said today.
This delivery has opened up a new gas transmission corridor between Greece, Romania and Ukraine, providing an opportunity to become part of the European Commission's Three Seas Initiative, Yaroslav Mudryy, managing partner at Eru, said. Eru previously said it is interested in trading in the Balkan markets.
The Three Seas Initiative aims to stimulate development of the region stretching between the Baltic, Black and Adriatic Seas. This is to be achieved through high-level commitment to boosting connectivity among member states, with a particular focus on infrastructure, energy and digital interconnectivity.
This new direction for Ukrainian imports could provide the country with increased access to LNG deliveries and pipeline gas from the Caspian. The TBP was previously used exclusively by Russian state-controlled Gazprom to deliver to southeastern and eastern European markets, but flows have fallen sharply following the commissioning of Turkish Stream at the start of the year.
Eru Trading was the first firm other than Gazprom to ship gas to Romania from Ukraine, with the shipment made in July.
The firm also received a regasified LNG cargo for shipment to Ukraine from Poland's 3.9mn t/yr Swinoujscie terminal in November, Ukraine's first LNG import.
Related news posts
Brazil's Rio Grande do Sul reallocates gas supply
Brazil's Rio Grande do Sul reallocates gas supply
Sao Paulo, 17 May (Argus) — Natural gas supply in Brazil's Rio Grande do Sul had to be redistributed because of the historic floods in the state, with diesel potentially making its way back as an power plant fuel to leave more gas available for LPG production. Gasbol, the natural gas transportation pipeline that supplies Brazil's south, does not have capacity to meet demand from the 201,000 b/d Alberto Pasqualini refinery (Refap), state-controlled Petrobras' Canoas thermal power plant and natural gas distributors in the region, according to Petrobras' then-chief executive Jean Paul Prates said earlier this week. The Santa Catarina state gas distributor has adjusted its own local network to meet peak demand in neighboring Rio Grande do Sul via the pipeline transportation network. The Canoas thermal plant is running at its minimum generation at 150GW, with 61pc coming from its gas turbine. The plant was brought on line to reinstate proper power supply after transmission lines in the south were affected by the floods. Petrobras plans to use a diesel engine to increase power generation. The current approved fuel cost (CVU) for diesel in the Canoas plant is of R1,115.29/MWh. Petrobras is also operating Refap at 59pc of its maximum installed capacity, at 119,506 b/d. Heavy showers in Rio Grande do Sul since 29 April brought unprecedented flooding to the state, causing a humanitarian crisis and infrastructure damage. The extreme weather has left 154 people dead, 98 missing and over 540,000 people displaced, according to the state's civil defense. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Jera to handle 35mn t/yr LNG until FY2035-36
Japan’s Jera to handle 35mn t/yr LNG until FY2035-36
Osaka, 17 May (Argus) — Japan's largest LNG importer Jera plans to maintain its LNG handling volumes at no less than 35mn t/yr until the April 2035-March 2036 fiscal year. Rising renewable power supplies and the possible return of more nuclear reactors are likely to pressure LNG demand from Japan's power sector. Jera consumed 23mn t of LNG in 2023-24, down by 3pc on the year, although it handled 35mn t through its global operations during the same year. But Jera needs to secure sufficient LNG supplies to adjust for imbalances in electricity supplies and ensure power security, through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generators. The 2035 target for LNG is part of Jera's three pillars of strategic focus, along with renewables as well as hydrogen and ammonia , which was announced on 16 May to spur decarbonisation towards its 2050 net zero emissions goal. The company plans to invest ¥5 trillion ($32bn) for these three areas over 2024-36. Jera also aims to retire all supercritical or less efficient coal-fired units by 2030-31 . This would help achieve the company's target of cutting CO2 emissions from its domestic business by at least 60pc against 2013-14 levels by 2035-36. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Chinese importers seek five LNG cargoes for Jun-Sep
Chinese importers seek five LNG cargoes for Jun-Sep
Shanghai, 15 May (Argus) — Five Chinese importers, mostly second-tier buyers, are each seeking one LNG cargo for June-September delivery, according to an official notice published by China's national pipeline operator PipeChina on 15 May. The five importers are PipeChina, Chinese independent ENN, Hong Kong-listed city gas firm China Resources Gas, Hong Kong-based Towngas and state-owned China Gas. PipeChina and ENN have indicated a target price of at most $9.50/mn Btu for their intended cargoes, both for delivery to PipeChina's 6mn t/yr Tianjin terminal. China Gas has indicated a target price of at most $9.30/mn Btu for delivery to PipeChina's 6mn t/yr Beihai termial. China Resources Gas and Towngas have both indicated a target price of at most $9/mn Btu for delivery to PipeChina's 2mn t/yr Yuedong and Tianjin terminals, respectively. This consolidated requirement came about because of a need for PipeChina to better leverage on its infrastructure advantages and, at the same time, meet the varying needs of gas importers and consumers in the country. But this requirement comes at a time when spot LNG prices are still somewhat higher than the importers' targeted prices. But the importers can choose not to buy if offers are not within their expectations. The front-half month of the ANEA, the Argus assessment for spot LNG deliveries to northeast Asia, was last assessed at $10.485/mn Btu on 15 May. Chinese importers mostly perceive spot prices below $9-9.50/mn Btu for June-September deliveries to be unattainable for now because there is strong buying interest from south and southeast Asia in particular. Indian state-controlled refiner IOC most recently bought LNG for delivery between 22 May and 15 June at around $10.60/mn Btu, through a tender that closed on 14 May. Thailand's state-controlled PTT most recently bought three deliveries for 9-10 July, 16-17 July and 22-23 July through a tender that closed on 13 May , at just slightly above $10.50/mn Btu. The most recent spot transaction was Japanese utility Tohoku Electric's purchase of a 10-30 June delivery at around $10.55/mn Btu through a tender that closed on 14 May . This is at least $1/mn Btu higher than Chinese importers' indications. Summer requirements have so far been muted but concerns among buyers about potential supply disruptions remain. Malaysia's 30mn t/yr Bintulu LNG export terminal suffered a power loss on 10 May, but this issue may have been resolved as of early on 15 May, according to offtakers. Some unspecified upstream issues may still be affecting production at the Bintulu facility, resulting in Malaysia's state-owned Petronas having to ask some of its buyers for cargo deferments, according to offtakers. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Q&A: Brazil adds Asian indexation for flexible gas
Q&A: Brazil adds Asian indexation for flexible gas
Sao Paulo, 13 May (Argus) — Three years after the natural gas market liberalization in Brazil, the number of consumers migrating from regulated supply has slowly increased and more flexible pricing mechanisms adopted. Argus spoke to Alessandro di Domenico , president of gas and power trader Delta Geração, about the current state of the market. Excerpts follow. Explain Delta's supply contract with Bolivia through 2026 despite Bolivia's gas production decline. The decline in production will happen because there is less investment [in Bolivia] than a few years back. But there are still some volumes that can supply the Brazilian market, especially in flexible contracts in the liberalized market. There is some gas that was being directed to Argentina and is now available. Even with the decline in Bolivia production, we will continue to have natural gas in the short-term. Besides that, the Rota 3 pipeline project [in Brazil's southeast] is close to being completed, which will bring more gas from pre-salt fields, leaving the market with more supply. This boosts the growth of the liberalized market. Delta is positioning itself to meet those demands and will sign other supply contracts soon. What types of contracts has Delta and others signed in the liberalized market? These are interruptible contracts. Their innovation relies on flexibility. Volume and duration are flexible. This allows us to meet clients almost back-to-back. How are these flexible contracts priced? They are competitive with the regulated market and are connected to international parity prices. Contracts are using Brent, Henry Hub and [Japan-Korea marker LNG spot prices]. How has the market progressed since 2021? This market was born rigid and is now gaining flexibility, in baby steps. In the beginning, there were only three consumers: Acelen, Brazilian steelmaker Gerdau and petrochemical group Unigel. Now we have companies in the cellulose business, metallurgy and automotive industry, which are all gas-intensive. So, in the future, there will be a big movement depending on state regulations, because that is an important axis of articulation for the mobility the liberalized market requires. State regulations play a very important role in allowing smaller entities to enter the market. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more