Nord Stream 2: Russia anticipates possible shift of E.U. countries to hydrogen

As countries of the bloc map out ways to disengage from climate-damaging fuels the plans point towards hydrogen. Russia, the market leader for oil and gas in Europe, anticipates this shift away from natural gas and reshuffles its production capacities. Gazprom will have to reflect the further use of the Nord Stream pipelines. Especially Nord Stream 2 coud turn out a major failed investment, writes german newspaper "Handelsblatt":

"According to Yuri Melnikow, senior analyst for energy issues at the Skolkowo University of Applied Sciences, hydrogen should be produced close to the sales markets. For Gazprom, this is primarily the European market. The company is currently exploring projects within the EU. Another option is hydrogen transport via the gas pipelines.

Otherwise, if the Europeans switch to hydrogen on a massive scale, Russia must fear that the pipelines will be shut down. The 8.5 billion euro Nord Stream 2, which is still under construction, will pay off after ten years at full capacity. If hydrogen production in Europe massively reduces gas imports, Nord Stream 2 threatens to become an investment ruin.

Gazprom is therefore considering sending at least one gas mixture mixed with hydrogen through the pipelines. In old pipelines, 20 percent of hydrogen could be added to natural gas, in new pipelines such as Nord Stream, the share could even be up to 70 percent, Gazprom estimates."

You can read the rest of the piece via the below link:

https://www.handelsblatt.com/politik/international/gazprom-und-rosatom-russlands-neue-energiestrategie-nord-stream-2-soll-wasserstoff-liefern/26039724.html?ticket=ST-10647373-baKJoldMLYHyyxtxnIdb-ap4 

Mexico: energy and oil industry perturbed by cartel activity

A feature about the situation in the state of Tamaulipas in the north-east of Mexico by Argus:

 "Over the past seven months, security experts working with oil, gas and renewable energy companies in the region have documented 15 deaths from cross-fire, seven assaults by cartel members fleeing confrontation with a rival gang, 25 kidnappings to extract money or extort information about rival gangs or for fuel theft, as well as numerous cases of vehicle theft and telephone extortion. Despite the high level of criminal activity, charging companies a fee to operate in the state, known as derecho de piso, is not common practice in Tamaulipas as it is in other part of the country.

A handful of illegitimate oil services companies, suspected of being fronts for laundering the profits of fuel theft, are also thought to be responsible for widely documented theft of heavy machinery, valves and pipes from oil field sites.

"Tamaulipas has a very specific security dynamic circled around criminal lookouts," Garcia said. "The groups are not necessarily tracking the companies themselves but are trying to keep track of rival organizations."

Companies operating in the state employ a range of protocols to protect their staff and operations, including daylight-only working hours, maintaining a high industrial profile through the use of vehicles and uniforms clearly marked with company logos, kidnap training for personnel, the use of hotels and apartment complexes that commit to anti-kidnap protocols, and the sharing of real-time data on criminal incidents in order to plan daily personnel movements."

You can read the rest of the piece via the below link:

https://www.argusmedia.com/en/news/2125516-tamaulipas-turf-war-creates-nogo-zone-for-energy?backToResults=true 

You might also check out the very interesting blog "Borderlandbeat" about narcos and cartels in Mexico.

EU bulletin on energy for Q1 2020

The press service of the European Union has issued its assessment  of prices and consumption of different energy sources. Concerning gas it ascertains:

"The gas report also illustrates a volatile quarter. Energy prices, including natural gas, underwent a steep fall, and the EU gas import bill fell below €10 billion, which was the lowest quarterly total in the last six years.

Gas prices in the EU were impacted by increasing LNG imports and intensive storage withdrawals, ensuring abundant supply on the market, whereas demand for gas was limited by mild weather, resulting in less heating needs, and decreasing need for gas in the electricity sector, owing to high shares of renewables in power generation in Q1 2020.

Russia remained the most important pipeline gas supplier for the EU in Q1 2020, however, its share fell to 40% in the total EU imports, and the gas transit volumes through Ukraine fell by 49% year-on-year, as Gazprom preferred to sell gas from EU storages rather than shipping through Ukraine.

LNG shipments accounted for a new record (28%) of EU gas imports.

At the end of March, gas storage levels in the EU stood at 54% - the highest seasonal figure for nine years.

Retail gas prices for industrial customers with median annual consumption were down by 10%, and for big consumers price decreases were even more marked (17%-20%) in Q1 2020 year-on-year. "

You can read the rest of the piece via the below link:

https://ec.europa.eu/info/news/market-reports-highlight-turbulent-quarter-electricity-and-gas-2020-jul-13_en 

Former chancellor Schröder lobbies for Nord Stream 2 in German parliament

Ex chancellor Gerhard Schröder was invited to the economic committee of the Bundestag by the leftwing and ex-communist party of the GDR, Die Linke, to speak as an expert on Nord Stream 2 where he spoke against US sanctions against the pipeline and appeals to counter-sanctions:

Schröder is Chairman of the Board of Directors at Nord Stream 2. In the Economic Committee, he now rejected the accusation that Nord Stream 2 jeopardizes Germany's security of supply. The opposite is the case.

The SPD politician also had an answer to the impending US sanctions. Schröder spoke in favor of EU counter-sanctions. The federal government had to put pressure on it at EU level.

You can read the rest of the piece via the below link:

https://www.welt.de/politik/deutschland/article210761445/Nord-Stream-2-Gerhard-Schroeder-fordert-im-Bundestag-Gegensanktionen-gegen-USA.html 

German officials fear US sanctions against german agencies

As the US Congress, in a rare bipartisan cooperation, votes new sanctions against any company supporting the completion of controversion pipeline Nord Stream 2, german officials fear that those sanctions could also hit german agencies and authorities who perform inspections or certifications, writes german newspaper "FAZ":

"The document points to a bipartisan bill that democratic and republican senators introduced in Washington in early June in the American legislative process. According to the Ministry of Economic Affairs, "all companies" that "offer services, insurance or certain retrofit services for laying ships" in connection with the planned Nord Stream 2 gas pipeline should "be included" in the planned sanctions. It also says: "The same applies to services such as tests, inspections or certifications that are required for the operation of Nord Stream 2."

The Department of Commerce is now afraid that the proposed American law could also "result in administrative action by state authorities in connection with the completion or operation of the pipeline being relevant to sanctions". The paper says: "It would be a novelty if sanctions were also directed against the authorities of (friendly) governments or even against the governments themselves." In any case, "it can be assumed that the new sanctions proposals will significantly increase the number of German and European companies a potential sanction target ”. American punitive measures against other countries have repeatedly been directed against representatives of companies and authorities. Accounts were blocked or entry bans issued."

Wilhemshaven FSRU is taking shape

MarineLog writes:

"Mitsui O.S.K. Lines Ltd. (MOL) and LNG Terminal Wilhelmshaven (LTW) have signed an agreement to build and charter a 263,000 cu.m LNG Floating Storage and Regasification Unit (FSRU) for the planned LNG terminal in Wilhelmshaven, which is Germany’s only deep water port and can be reached without any tidal constraints.

The FSRU will be built by South Korean’s Daewoo Shipbuilding and Marine Engineering (DSME) then chartered by LTW (which is a subsidiary of Düsseldorf headquartered Uniper SE) for 20 years.

DSME said in a filing last week that it had signed a contract worth $340 million to build an FSRU for an undisclosed customer.

The FSRU will make it possible to offload, store and regasify LNG for the German market. It will be moored off the coast not far from Wilhelmshaven and will handle incoming LNG tankers there. The regasified gas will then be pumped from the FSRU along a short connecting pipeline under the sea to the port facilities and finally fed into the German gas transmission network. This eliminates the need to construct complex regasification facilities on land."

 You can read the rest of the piece via the below link:

https://www.marinelog.com/shipping/markets/wilhelmshaven-fsru-to-be-built-by-dsme/

 

New US sanctions to be introdueced against Nord Stream 2

New York Times:

"Cruz told the Atlantic Council think tank this month that new sanctions would apply to any ship or any owner who attempts to finish the project. Ship officers would lose their ability to come to the United States and all their assets would be blocked, he said."