Yesterday, 11:10 AM
- Western partners in the Nord Stream 2 gas pipeline extension to Europe are examining funding alternatives after Poland's cartel office recently blocked its clearance, Reuters reports.
- Gazprom's (OTCPK:OGZPY) five Western joint venture partners - Royal Dutch Shell (RDS.A, RDS.B), Austria's OMV (OTC:OMVJF), France's Engie (OTCPK:ENGIY) and Germany's Uniper and Wintershall - pulled out of the financing to avoid a drawn-out battle but vowed to help keep the project alive, saying Europe's gas production was declining and wanting to secure a share of future business.
- Reuters reports that the most likely options now could be to dilute current rights as equity participants to put the JV out of the Polish agency's reach, raising bank debt, or issuing loans to Gazprom with higher interest; to help with cash, partners could commit to volumes and pay up front when the gas is put into the pipeline.
- Opponents say Nord Stream 2 could tie Europe indefinitely to Russia at a time when gas sources are plentiful; U.S. VP Biden today called the pipeline a "bad deal" for Europe.
Fri, Aug. 12, 12:58 PM
- Gazprom (OTCPK:OGZPY) says it will build the proposed $11B Nord Stream 2 gas pipeline from Russia to Germany on its own after a joint venture with five European partners fell apart over pressure from Poland’s anti-monopoly watchdog.
- Altough the pipeline is not set to go through Poland or Polish waters, Gazprom needed the Polish watchdog’s approval to sell shares in the JV to its partners, some of which have assets in Poland; the regulator objected to the pipeline on the grounds that it would cement Gazprom’s already dominant position on the European gas market.
- All six partners - Gazprom plus Royal Dutch Shell (RDS.A, RDS.B), Austria's OMV (OTC:OMVJF), France's Engie (OTCPK:ENGIY), and Germany's Uniper and Wintershall - say the pipeline project would still move forward despite the decision.
Wed, Aug. 10, 1:56 PM
- Russia and Turkey appear poised to revive the development of the TurkStream natural gas pipeline between the two countries following this week's meeting of Russian Pres. Putin and Turkish Pres. Erdogan.
- Gazprom (OTCPK:OGZPY) already has started negotiations with Turkey on resuming work on the pipeline, and construction of the first line of the project should be completed by December 2019, according to Russian Energy Minister Novak.
- TurkStream was sidelined after Turkish jets shot down a Russian warplane near the Syrian border last November.
- The project would bring gas from Siberia under the Black Sea, and likely would undermine European efforts to reduce reliance on Russian energy with fuel piped in from Azerbaijan; with TurkStream back on track, it may not make commercial sense to expand capacity for a southern pipeline as planned.
Wed, Aug. 10, 9:17 AM
- Russia's Gazprom (OTCPK:OGZPY) says Q1 net profit fell 5% Y/Y to 362B rubles (~$5.6B) despite a 5% gain in revenues to 1.74T rubles, as expenses rose amid lower natural gas prices.
- Gazprom boosted Q1 sales volumes to Europe by 49% from last year, when Europe had plenty of gas in storage and companies were waiting for a cheaper price to snap up supplies; revenues from those sales were up only 22%, as the average price fell.
- Sales revenues in Russia rose 2% to 292B rubles, but sales volumes slipped 6%, while weak demand from Ukraine meant that revenues from former Soviet countries were 25% lower as volumes and prices fell.
- Q1 operating expenses rose 24% to 1.45T rubles, caused mostly by an increase in expenses for gas relating to an asset swap agreement between Gazprom and Germany's Wintershall.
Wed, Aug. 10, 8:53 AM
Mon, Aug. 8, 10:57 AM
- Bulgaria's prime minister says his country and Russia will seek ways to resurrect the canceled South Stream natural gas pipeline across the Black Sea and the Belene nuclear power plant.
- In 2014, Gazprom (OTCPK:OGZPY) canceled the project to deliver gas to southern Europe via the Black Sea with an entry point in Bulgaria after the European Union forced Bulgaria to withdraw because the pipeline would have violated competition rules.
- Bulgaria also will look to build the 2,000 MW nuclear plant at Belene on the Danube river as a “private project with some participation from the state, because without a state stake nobody wants” to invest in it, the prime minister says.
Tue, Aug. 2, 12:49 PM
- July monthly performance was: +4.14%
- 52-week performance vs. the S&P 500 is: +4%
- No dividends were paid in July
- Top 10 Holdings as of 6/30/2016: China Mobile Ltd (OTCPK:CHLKF): 3.82599%, China Construction Bank Corp H (OTCPK:CICHF): 3.7955%, Taiwan Semiconductor Manufacturing Co Ltd (2330): 2.77796%, Ambev SA (ABEV3): 2.34785%, Samsung Electronics Co Ltd (OTC:SSNLF): 1.94929%, CNOOC Ltd (OTCPK:CEOHF): 1.75845%, Gazprom PJSC ADR (OTCPK:OGZPY): 1.62779%, PJSC Lukoil ADR (OTCPK:LUKOY): 1.43969%, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR (OTCPK:NILSY): 1.38151%, Wal - Mart de Mexico SAB de CV Class V (OTCPK:WMMVF): 1.11827%
Tue, Aug. 2, 11:39 AM
- July monthly performance was: +6.61%
- 52-week performance vs. the S&P 500 is: -8%
- No dividends were paid in July
- Top 10 Holdings as of 6/30/2016: CNOOC Ltd (OTCPK:CEOHF): 4.33604%, Gazprom PJSC ADR (OTCPK:OGZPY): 3.79662%, PJSC Lukoil GDR (LUKUF): 3.36846%, MMC Norilsk Nickel JSC ADR (OTCPK:NILSY): 3.21577%, China Construction Bank Corp H (OTCPK:CICHF): 2.61315%, Chunghwa Telecom Co Ltd (2412): 2.18189%, Industrial And Commercial Bank Of China Ltd H (OTCPK:IDCBF): 1.96869%, Vale SA (VALE3): 1.85461%, MTN Group Ltd (OTCPK:MTNOF): 1.85405%, Ptt PLC DR (OTC:PUTRF): 1.60086%
Fri, Jul. 1, 7:31 AM
- June monthly performance was: +5.09%
- 52-week performance vs. the S&P 500 is: 0%
- $0.12 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: China Mobile Ltd (OTCPK:CHLKF): 3.9717%, China Construction Bank Corp H (OTCPK:CICHF): 3.80475%, Taiwan Semiconductor Manufacturing Co Ltd (2330): 2.75233%, Ambev SA (ABEV3): 2.13524%, Samsung Electronics Co Ltd (OTC:SSNLF): 1.77648%, CNOOC Ltd (OTCPK:CEOHF): 1.76186%, Gazprom PJSC ADR (OTCPK:OGZPY): 1.67271%, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR (OTCPK:NILSY): 1.47877%, PJSC Lukoil ADR (OTCPK:LUKOY): 1.33665%, Wal - Mart de Mexico SAB de CV Class V (OTCPK:WMMVF): 1.13755%
Fri, Jul. 1, 7:08 AM
- June monthly performance was: +5.97%
- 52-week performance vs. the S&P 500 is: -20%
- $0.28 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: CNOOC Ltd (OTCPK:CEOHF): 4.37205%, Gazprom PJSC ADR (OTCPK:OGZPY): 4.00976%, MMC Norilsk Nickel JSC ADR (OTCPK:NILSY): 3.5522%, PJSC Lukoil GDR (LUKUF): 3.21156%, China Construction Bank Corp H (OTCPK:CICHF): 2.65871%, Chunghwa Telecom Co Ltd (2412): 2.12161%, Industrial And Commercial Bank Of China Ltd H (OTCPK:IDCBF): 1.96586%, Ptt PLC DR (OTC:PUTRF): 1.57664%, Mobile TeleSystems PJSC ADR (MBT): 1.54441%, MTN Group Ltd (OTCPK:MTNOF): 1.54063%
Mon, Jun. 20, 10:52 AM
- Russia's Gazprom (OTCPK:OGZPY) could gain control over some assets that Royal Dutch Shell (RDS.A, RDS.B) acquired earlier this year from BG Group, deputy chief executive Alexander Medvedev tells Reuters.
- Medvedev does not say what the BG holdings were or where they were located, but that the deals would be completed by year-end or perhaps earlier.
- Shell signed a deal with Gazprom last week to study jointly building a $10B gas plant on the Baltic Sea, as part of their strategic partnership which also foresees asset swaps.
Fri, Jun. 17, 4:45 PM
- Russia's Energy Minister says he has discussed with Exxon Mobil (NYSE:XOM) CEO Rex Tillerson the possibility of securing rights to export natural gas to China via the Sakhalin Island in the Pacific Ocean.
- XOM is an operator of the offshore Sakhalin-1 project being jointly developed with Rosneft (OTC:RNFTF) under a production-sharing agreement formulated in the 1990s, but the project's gas deposits have long been locked in due to a price dispute between Sakhalin-1 and Gazprom (OTCPK:OGZPY), which has a monopoly right to export gas.
- The minister says he discussed various options with Tillerson at this week's St. Petersburg International Economic Forum
Thu, Jun. 16, 12:58 PM
- Gazprom (OTCPK:OGZPY) CEO Alexei Miller defends the Nord Stream 2 gas pipeline against criticism that it is politically motivated, saying the project will save money and cut carbon emissions.
- Gazprom is facing political resistance among central and eastern European countries, which say Nord Stream 2 is a geopolitical project that will increase their dependence on Russian gas and hurt the economies of countries such as Ukraine and Slovakia that earn transit fees.
- Miller tells the St. Petersburg International Economic Forum that the $11B project would allow Gazprom to save $1.6B/year by not investing in maintaining old pipelines transiting Ukraine, and that transit through Ukraine would fall from 67B cm last year to 10B-15B cu/year after 2020, when Gazprom’s contract with Ukraine expires and Nord Stream 2 is set to start operations.
Thu, Jun. 16, 11:16 AM
- Royal Dutch Shell (RDS.A, RDS.B) and Gazprom (OTCPK:OGZPY) have signed a letter of understanding to begin construction of a liquefied natural gas project at the Russian port of Ust-Luga on the Baltic Sea, confirming earlier reports.
- Respective CEOs Ben van Beurden and Alexei Miller signed the agreement at the International Economic Forum in St. Petersburg.
- Gazprom has said the Baltic LNG plant could produce up to 20M metric tons/year of frozen gas, with an option to expand to 15M metric tons; the new plant will start operating in December 2021.
- UPDATE: Russia's energy minister says Shell and Gazprom will jointly invest $13B in three projects.
Tue, Jun. 14, 11:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) is expected to sign a deal with Gazprom (OTCPK:OGZPY) this week for a planned liquefied natural gas project at the Baltic Sea, possibly to acquire a 25%-35% stake, Reuters reports.
- A Russian government official says the deal will be signed in the presence of Pres. Putin, who will meet Shell CEO Ben van Beurden at the St. Petersburg International Economic Forum.
- Gazprom plans to build the plant, which may produce up to 20M metric tons/year of LNG, by December 2021.
Wed, Jun. 8, 4:59 PM
- The Gazprom-led (OTCPK:OGZPY) consortium has issued the first major tender for its $11B Nord Stream-2 natural gas pipeline project, which could double supplies of Russian pipeline gas across the Baltic Sea to Western Europe, WSJ reports.
- The estimated $1B-plus tender for the pipe-laying contract has been sent to interested contractors, and bids will be evaluated by the consortium on June 13, according to the report.
- The JV building the project is 51% owned by Gazprom, while Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF) and BASF/Wintershall (OTCQX:BASFY) each own 10% and Engie (OTCPK:ENGIY) has a 9% stake.
- The existing Nord Stream pipeline has been criticized because it allows Russia to circumvent transit countries, such as Ukraine and Poland; the European Union is skeptical about the new project on antitrust grounds because Gazprom would own all the gas to be transported through the infrastructure.
Gazprom extracts, transports, stores and sells natural gas. The company is the successor to the State-owned company. Gazprom owns and operates Russia's Unified Gas Supply System. The company has a monopoly in supplying gas in the Russian Federation, and exports natural gas to Western Europe.
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration