Thu, Sep. 29, 12:42 PM
- Gazprom (OTCPK:OGZPY) says it plans to launch a third liquefied natural gas production train at the Sakhalin-2 LNG plant in 2021, possibly fed by a newly drilled field.
- Sakhalin-2, Russia's sole LNG plant and run by Gazprom, Royal Dutch Shell (RDS.A, RDS.B), Japan's Mitsui and Mitsubishi, operates two production lines with a combined capacity of 10M metric tons/year of LNG, and the third train should add another 5M tons.
- An obstacle to expansion is the resource base; the group is considering buying gas from the Sakhalin-1 project led by ExxonMobil and Rosneft, developing new resources, or a combination, but Sakhalin-1 is aiming for its own LNG plant.
Mon, Sep. 26, 11:32 AM
- Russian energy producers Rosneft (OTC:RNFTF) and Gazprom (OTCPK:OGZPY) are raising the share of production from hard-to-recover reserves to counter declining conventional output, Reuters reports.
- Rosneft tells Reuters it expects the share of hard-to-recover oil production to rise to 11% of its total crude output by 2020 from 7% this year, adding that the cost of production of such crude was $10-$35/bbl, making it feasible to develop even in the current downturn with prices below $50/bbl.
- Gazprom says it is raising its share of output of hard-to-recover oil by tapping more reserves at the Messoyakha project and other assets.
- While any deal on a global production freeze likely would be short-term, the Rosneft and Gazprom plans demonstrate the complexities of global cooperation, as countries including top producers Russia and Saudi Arabia seek to protect their long-term market share.
Thu, Sep. 22, 6:19 PM
- Gazprom (OTCPK:OGZPY) says it discovered a new gas deposit during exploration at the Kirinskoye field in the Sea of Okhotsk near Russia's Sakhalin island, a find that could prove crucial for its plans to raise liquefied natural gas production at its Sakhalin-2 plant on the island.
- Royal Dutch Shell (RDS.A, RDS.B), which also has a stake in the plant which produces 10M metric tons/year of LNG, may also get a share in the Kirinskoye field as part of an asset swap deal with Gazprom, although the prospects are uncertain because of sanctions for Russia's role in the Ukraine crisis.
- Gazprom has not disclosed the reserves of the newly discovered deposit.
Wed, Sep. 21, 2:26 PM
- Russian Pres. Putin officially launched production at the new Vostochno-Messoyakhskoye oil field on the Yamal Peninsula today, a day after the country's production touched a record high 11.75M bbl/day.
- The new field, which is being jointly developed by Gazprom (OTCPK:OGZPY) and Rosneft (OTC:RNFTF), should add ~12K bbl/day to Russia's production this year, with another two fields planned for start-up later this year.
- Russian oil output is expected to reach 10.95M bbl/day this year, up from the previous record high 10.72M bbl/day in 2015.
Fri, Sep. 16, 10:59 AM
- Russia's Gazprom (OTCPK:OGZPY) and its European partners in the Nord Stream-2 gas pipeline project say they have submitted a permit application to Sweden, starting a process aimed at gaining official approval for the 1,200-km pipeline.
- The group says it plans to submit permit applications in the four other relevant jurisdictions - Russia, Finland, Denmark and Germany - in early 2017.
- Nord Stream-2, due to open in 2019, would double the amount of gas directly shipped from Russia to Germany; critics say it could limit supply routes and the energy security of the European Union, which already gets a third of its gas from Russia.
- Gazprom's Nord Stream-2 partners include Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF), Engie (OTCPK:ENGIY) and Wintershall.
Tue, Sep. 13, 11:48 AM
- Pipes to build Russia's Nord Stream-2 are expected to start being supplied in December or January, in a sign the gas project designed to double the capacity of the existing pipeline on the Baltic Sea floor from Russia to Germany is going ahead.
- The head of the Russian pipemakers association told the Reuters Russia Investment Summit that he expects construction of Nord Stream-2, which was due to start in 2018, to go ahead as planned as production of the pipes had already begun.
- Last year, Gazprom (OTCPK:OGZPY) and its European partners, including Royal Duthc Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF), Engie (OTCPK:ENGIY) and Wintershall, agreed on the project which will double the 55B cm/year of the existing pipeline.
Mon, Sep. 12, 11:36 AM
- Russia plans to sign an agreement next month with Turkey on the implementation of the TurkStream gas export pipeline project, Russian Energy Minister Novak reportedly said over the weekend.
- Talks on the project were stopped last year after Turkey shot down a Russian air force jet but the two countries have since made progress in mending relations, and Turkish Pres. Erdogan said last month that building the pipeline quickly was a priority.
- Project operator Gazprom (OTCPK:OGZPY) said last week that it had received first regulatory approvals from Turkey, allowing the project to move into implementation phase.
Tue, Sep. 6, 11:46 AM
- PetroChina (PTR -0.3%) parent China National Petroleum says it will sell $11.3B worth of financial assets to a listed unit as part of a reform plan to restructure its non-core businesses.
- Jinan Diesel Engine, a unit under CNPC and listed on the Shenzhen exchange, says it plans to buy certain financial assets in CNPC for 75.5B yuan ($11.3B) via cash, asset swaps and a share issue.
- Separately, Russia's Gazprom (OTCPK:OGZPY) said on Sunday that it signed a contract with CNPC to build a section of the Power of Siberia gas pipeline under the Amur river.
Fri, Sep. 2, 3:13 AM
- Japan will propose a broad cooperation in the energy sector with Russia today that could include a nearly $10B investment in state-owned oil giant Rosneft (OTC:RNFTF), the Nikkei reports.
- In other Russian news, companies building a multi-billion dollar bridge to link the mainland with annexed Crimea have been targeted by the U.S. in an updated sanctions blacklist, including several subsidiaries of Gazprom (OTCQX:GZPFY).
- ETFs: RSX, RUSL, RUSS, ERUS, RSXJ, RBL
Tue, Aug. 30, 11:21 AM
- Gazprom (OTCPK:OGZPY) says its Q2 net income fell 17% Y/Y to 244.9B rubles ($3.8B), but that's a less than expected reduction as a strengthening ruble helped ease the debt burden at the world’s biggest natural gas producer.
- Q2 revenue rose 4.9% Y/Y to 1.33T rubles, while net debt fell 15% from the start or the year to 1.76T rubles, mostly because of the currency strengthening.
- “The second quarter was the worst for Gazprom this year, [but] the results are better than expected,” says an analyst at Raiffeisen Bank in Moscow. "Gazprom even has a chance to see a positive cash flow - close to zero but still positive - if oil remains at about $50 a barrel and depending on the cold season.”
- The average gas price for Europe and other countries fell 18% to nearly 13K rubles per thousand cm during H1, while supply volumes grew to 109.4B cm from 80.4B cm in the year-earlier period.
Thu, Aug. 25, 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.