Medvedev sees European gas price hike
Europeans will "soon be paying" €2,000/'000m³ for their gas, former Russian president and deputy chairman of Russia's security council, Dmitry Medvedev, said today.
European consumers will enter a "brave new world" following Germany's decision earlier today to halt certification of the 55bn m³/yr Nord Stream 2 pipeline, Medvedev said.
Russia has repeatedly rejected accusations by the European Commission and agencies such as the Paris-based IEA that it has used energy as a weapon by withholding gas from Europe.
The Nord Stream 2 certification process was already expected to be pushed into at least the second half of this year, with no guarantee of a positive decision.
And it is possible to ship much more Russian gas to Europe than has been sent in recent months using existing supply routes, with deliveries to Europe through Poland and Ukraine holding well under capacity this winter.
Nord Stream 2 would not necessarily provide additional gas for Europe, but simply provide an alternative route for the same gas. Higher receipts of Russian gas depend on the nominations of Gazprom's buyers, and on available supply for Gazprom to export.
The price for a contract with front-month delivery at the TTF, Europe's benchmark gas hub, had by mid-afternoon jumped by around 10pc from yesterday's close, but was still well short of the level projected by Medvedev. Prices last approached €2,000/'000m³ in late December 2021, but fell early this year following an influx of LNG deliveries, and mild and windy weather that weighed on gas consumption across much of Europe.
"We are not for high prices, we are for stable deliveries," Russian energy minister Nikolai Shulginov said in an interview published by the ministry as recently as yesterday. High prices are "absolutely unprofitable for Gazprom and Russia, because consumption continues to decrease, the volume of purchases decreases, and the economy slows down", he said.
"The EU needs to increase gas supplies and use the capacities of Nord Stream 2, because this will create a surplus in gas supply" that would allow Europe to refill its depleted storage facilities and avoid a repeat of the record price surge in 2021, Shulginov said.
If firms do not secure long-term contracts with Gazprom, the alternative is much more costly LNG, Shulginov said. "Does that mean Europe will shoot itself in the foot?" he asked.
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USGC LNG-VLSFO discount to steady itself
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India’s Chhara LNG terminal faces commissioning delay
India’s Chhara LNG terminal faces commissioning delay
Mumbai, 23 April (Argus) — Indian state-owned refiner HPCL's 5mn t/yr Chhara LNG import terminal is again facing delays in receiving and unloading its commissioning cargo, a market source told Argus . Fender failure at the terminal has caused problems in berthing the LNG vessel. The fender acts as a buffer or cushion between the ship hull and the dock, and prevents damage as a result of contact between the two surfaces. HPCL on 22 April issued a tender offering the commissioning LNG cargo , which is onboard the 160,000m³ Maran Gas Mystras. The vessel is currently laden offshore the terminal and ready to redeliver to another Indian LNG terminal on 25-30 April, according to HPCL. The company is seeking bids at a fixed price, and custom duty has already been paid by the firm. Indian firm Gujarat State Petroleum (GSPC) facilitate HPCL's purchase of the cargo on 26 March, with the cargo for delivery over 9-12 April. HPCL has put up the commissioning cargo for auction, and it can be discharged from any alternative port in India. LNG terminals closer to Chhara include Indian state-controlled importer Petronet's 17.5mn t/yr Dahej, Shell's 5.2mn t/yr Hazira or state-owned gas distributor Gail's 5mn t/yr Dhabol LNG terminal. HPCL also has not awarded a tender that is seeking another early-May delivery cargo , which closed on 19 April. Commissioning of the Chhara LNG terminal has been delayed since September 2022 owing to pipeline issues. The terminal is the country's eighth LNG import facility, which would lift total regasification capacity to 52.7mn t/yr from 47.7mn t/yr currently. The pipeline runs from the terminal and connects the city gas distribution network from Lothpur to Somnath district in Gujarat. There has been a delay in opening the pipeline as it passes through the eco-sensitive zone of the Gir wildlife sanctuary for 25.816km, a government document shows. The facility was completed in February, but is set to be closed from 15 May-15 September ahead of the completion of a breakwater facility , which is required to ensure safe LNG tanker berthing during India's monsoon season. No specific timeline has been given for building the breakwater, but the terminal will be able to operate year-round once it is completed. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TotalEnergies to fully own Malaysian gas firm SapuraOMV
TotalEnergies to fully own Malaysian gas firm SapuraOMV
Singapore, 23 April (Argus) — TotalEnergies has signed an agreement to acquire Sapura Upstream Assets' 50pc stake in Malaysian private gas producer and operator SapuraOMV, which will take TotalEnergies' total stake to 100pc. The acquisition will cost $530mn, subject to closing adjustments, with closing expected to take place in the second half of this year, said TotalEnergies. This latest deal follows a previous agreement that TotalEnergies signed in January with Austrian firm OMV to acquire its 50pc interest in SapuraOMV. This means TotalEnergies will own 100pc of SapuraOMV once both transactions are completed. "Following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets, TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia," said TotalEnergies' chairman and chief executive officer Patrick Pouyanné. "The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets," he added. SapuraOMV in 2023 produced 500mn ft³ of gas, which was used to feed the Bintulu LNG plant operated by state-controlled Petronas, as well as 7,000 b/d of condensates. SapuraOMV holds 40pc and 30pc operating interests, respectively, in blocks SK408 and SK310, which are offshore Sarawak, Malaysia. Block SK408's Jerun gas field, which could hold up to 84.9bn m³, is on track to start up in the second half of this year. SapuraOMV also has interests in exploration licences in Malaysia, Australia, New Zealand, and Mexico, where there was a discovery on block 30 last year, with estimated resources of 200mn-300mn bl of oil equivalent. TotalEnergies holds interests in two production sharing contracts in Malaysia. It in June last year signed an agreement with Petronas and Japanese trading firm Mitsui to jointly develop a carbon capture and storage project in Malaysia as well as assess maturing depleted fields and saline aquifers for storage. The firms hope to develop a CO2 merchant storage service to help industrial customers in Asia decarbonise. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Tamboran agrees NT gas sales deal
Australia’s Tamboran agrees NT gas sales deal
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