Yesterday, 11:38 AM
- Rosneft (OTC:RNFTF) may have to turn to competitors to buy natural gas and state aid to help honor a $50B contract it won away from Novatek three years ago, and may supplement its own output with fuel purchases when its contract with power utility Inter RAO starts next year, Bloomberg reports.
- Russia's government also is said to be deciding on funding for Rosneft to expand its Rospan gas unit in west Siberia, and the Economy Ministry may recommend the project as one of five recipients of ~300B rubles ($6B) from the National Wellbeing Fund.
- With more than 2T cm of gas reserves, Rosneft has been seeking to replace Novatek as Russia’s second largest producer of the fuel and to break Gazprom’s (OTCPK:OGZPY) monopoly on pipeline exports.
Tue, May 19, 10:59 AM
- Gazprom (OTCPK:OGZPY) says it is reviving a deal with Saipem (OTCPK:SAPMY) to build a gas link through the Black Sea, which was suspended after Russian Pres. Putin scrapped the South Stream pipeline to Europe last year.
- Saipem will start laying the new route to Turkey in June as Gazprom shifts contracts, including pipe supplies, to the new project; the companies are in talks over the terms of the contract, but the previous agreement is still in place so far.
- Saipem had said the suspension on South Stream contracts was being lifted and that it expected to begin work on the offshore section of the pipeline in the Black Sea.
Wed, May 13, 9:39 AM
- Statoil (NYSE:STO) has increased by nearly 50% the volume of gas it will deliver to U.K. energy supplier Centrica (OTCPK:CPYYF) under an existing supply deal.
- STO now will supply 7.3B cm/year of gas to Centrica, up by 2.3B cm/year from the original 5B agreed under a 10-year supply pact signed in 2011, with deliveries due to start in October.
- Centrica also expands a three-year supply deal that came into effect last year with Gazprom (OTCPK:OGZPY) to 4.16B cm/year from 2.4B cm/year and will now run until 2021.
- "Britain needs ~70B cm of natural gas each year to heat homes and businesses and to generate electricity, and the U.K. now needs to import more than half of this," Centrica says.
Wed, Apr. 29, 12:31 PM
- Gazprom (OTCPK:OGZPY) reports its 2014 net profit collapsed by 86% to 159B rubles (~$3.1B) from 1.1T rubles (~$20B) after being hit by the fall in the value of the ruble as well as lower oil prices.
- But results met expectations and the state-run company was able to generate record cash flow of $17.2B, helped by the ruble’s fall; Gazprom sells its gas in dollars and reports its profit in rubles.
- "They've generated good cash flow for the second year in a row" after coming in at $5.9B in Q4, says Sberbanks Alex Fak.
- “Underlying profitability looks strong," says Renaissance Capital's Ildar Davletshin. “If you clean up the numbers from one-offs, impairments charges in the fourth quarter and the foreign exchange loss, there is a positive net income."
Thu, Apr. 23, 4:49 PM
- Argentina's YPF says it has sold $1.5B of new 10-year bonds at 8.5%, raising its planned issuance from $500M because of strong demand - a far better result than its February sale of $500M of bonds, a third less than it had offered, when many bids were for higher yields than it would accept.
- YPF needs to raise cash to invest in its vast but barely tapped Vaca Muerta shale field in order to reverse Argentina's energy sector trade deficit that is pressuring foreign reserves.
- Separately, Russia's Gazprom (OTCPK:OGZPY) and YPF sign an agreement that sets out plans to jointly explore, produce and transport hydrocarbons in the shale gas-rich South American country and in third countries.
Wed, Apr. 22, 7:49 AM
- The European Union formally files charges against Russia's Gazprom (OTCPK:OGZPY) of overcharging buyers in the eastern European gas market and hindering competition, in a move sure to stoke tensions with Moscow.
- The EU says it reached a preliminary view that Gazprom was hindering competition in the gas-supply markets in eight EU countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia.
- Gazprom “may have built artificial barriers preventing gas from flowing from certain Central Eastern European countries to others, hindering cross-border competition,” according to EU antitrust chief Margrethe Vestager, adding that prices in some countries were as much as 40% higher than in others.
Tue, Apr. 21, 2:32 PM
- Gazprom (OTCPK:OGZPY) CEO Alexei Miller offered Greece a plan to sell its natural gas to the European Union through the cash-strapped country but made no public offers of immediate sweeteners during today's visit.
- Miller said his company could guarantee annual shipments of 47B cm of gas via Greece and the collection of transit fees once the pipeline is operating, and that Greece could raise commercial loans against the guaranteed deliveries.
- The CEO said a consortium of Russian and European companies could build the Greek pipeline, an extension to the planned Turkish Stream project that will take Russian gas under the Black Sea.
Mon, Apr. 20, 12:36 PM
- Gazprom (OTCPK:OGZPY) CEO Alexei Miller will meet with Greek Prime Minister Tsipras in Athens tomorrow, as reports say the two countries are set to sign a pipeline deal in which Russia would make billions in an advance payment to cash-strapped Greece.
- A Greek official says the two countries will sign an agreement to extend the planned Turkish Stream pipeline to Greece.
- If the deal actually is reached, any advance payment would be a welcome source of revenues for Greece, which is struggling to unlock desperately needed international bailout funds, but analysts are skeptical, as the Turkish Stream pipeline is not expected to come into service until 2019 and Turkey and Russia are struggling to come to a final deal.
Mon, Apr. 20, 10:41 AM
- The European Union’s competition regulator reportedly plans to file formal antitrust charges against Gazprom (OTCPK:OGZPY) this Wednesday, a step sure to escalate tensions between Europe and Russia.
- Sources familiar with Gazprom say the company had signaled its willingness to settle the case to the commission as recently as last week, after formal settlement talks broke down last year after Russia annexed the Crimean peninsula from Ukraine.
- The European Commission started a formal investigation into Gazprom’s business practices in some eastern and southern European countries in 2012, saying it suspected the company of abusing its dominant position in those countries’ natural gas supply.
Tue, Apr. 14, 8:42 AM
- Europe could face higher natural gas prices if it continues with its effort to reduce Russia’s energy market power, Gazprom (OTCPK:OGZPY) CEO Alexei Miller warned yesterday.
- Gazprom could go along with European Union efforts to more closely integrate its energy market and reduce its dependence on Russia, but an attempt to negotiate a single price for Russian gas across the EU, as some European leaders have called for, would lead to higher prices for many countries, Miller said.
- Miller appears to be betting that major European countries, currently benefiting from relatively cheap Russian gas, would put pressure on the EU to go easy on Gazprom; Germany pays some of Europe’s lowest prices for gas from Russia, a benefit that would be at risk if Brussels demanded uniform prices, Miller said.
Mon, Apr. 6, 12:23 PM
- Russia's Gazprom (OTCPK:OGZPY) signs a framework agreement to buy a 49% stake in Vietnam's Dung Quat refinery, the country's only operational oil processing facility, as the two countries pledge to step up cooperation by expanding oil and gas exploration and production in Vietnam with state oil firm PetroVietnam.
- Gazprom says it will join a project to upgrade and raise the capacity of the refinery after earlier reaching a deal to supply crude oil to the refinery.
- The 130K bbl/day Dung Quat refinery became operational in 2009 and meets about one-third of Vietnam's demand for transport fuels.
Thu, Apr. 2, 10:43 AM
- Ukraine signs a new short-term agreement with Gazprom (OTCPK:OGZPY) to buy gas from Russia at a lower price, despite the ongoing conflict in the eastern part of the country.
- Ukraine will pay $248 per thousand cm over the next three months, down from the $329 it had been paying in Q1, while talks continue to seek a permanent solution to the long-running pricing dispute.
- Ukraine says it will still be required to pre-pay Russia for its gas supplies.
Mon, Mar. 30, 5:45 PM
- Gazprom (OTCPK:OGZPY) says its 2014 earnings used to calculate dividends fell 70% Y/Y because of a foreign currency loss.
- Gazprom says its net income according to Russian accounting standards sank to 189B rubles from 628B rubles a year ago, which may translate into a payout of ~2 rubles/share vs. 7.2 rubles a year earlier as the company usually pays out 25% of domestic profit.
- Additionally, CEO Alexei Miller says the company is asking for government approval to provide Ukraine a discount on natural gas prices for three months beginning April 1 after Ukraine's state-owned oil and gas company sent a letter seeking to extend the current discount winter package to the end of winter of next year.
Thu, Mar. 19, 2:44 PM
- Ukraine will seek to nearly double the fees it charges Gazprom (OTCPK:OGZPY) to transmit Russian gas through the country to the European Union, Ukraine's energy minister tells WSJ.
- Ukraine is set to begin new talks with Russian company over gas supplies tomorrow in Brussels, and the two sides need to resolve this and other issues before a deal can be reached, including the price and a pay-or-take clause and payment terms.
- Ukraine now charges Gazprom $2.88 to ship 1,000 cubic meters of gas 100 km and wants an increase to $5.30-$5.50, the energy minister says.
Thu, Mar. 5, 12:24 PM
- Golar LNG (GLNG +10.8%) shoots higher on heavy volume after signing a preliminary agreement with Russia's Rosneft (OTC:RNFTF) to develop floating liquefied natural gas plants in Latin America and potentially elsewhere.
- GLNG says it aims to sign two agreements that would give Rosneft capacity from its floating gas liquefaction plants under development.
- The new concept of floating LNG production has yet to be tested, and the first such plant - owned by Pacific Rubiales (OTCPK:PEGFF) and whose output is earmarked for sale to Russia's Gazprom (OTCPK:OGZPY) - is expected to come on stream later this year.
Thu, Mar. 5, 8:42 AM
- Gazprom (OTCPK:OGZPY) says it received a prepayment for natural gas from Ukraine, delaying the threat of a supply halt until next Wednesday.
- The $15M received is sufficient for about five days of supplies at the current level, Gazprom says, meaning the advance may run out the morning of March 11 in Moscow.
- Analysts say the main issue now is whether Russia and Ukraine will agree on gas deliveries from April, when their EU-brokered deal expires, since supplies through Ukraine are not so vital for Europe as warmer weather approaches.
OGZPY vs. ETF Alternatives
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.
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