Hungary and Russia's Gazprom are in talks about extra gas for Budapest by 2025
Hungary and Russia’s Gazprom have begun negotiations for an agreement to supply additional gas next year to Budapest. Peter Szijjarto, Hungarian Minister of Foreign Affairs, told the Russian news agency RIA in remarks published Tuesday. "We've already signed an additional agreement for the fourth quarter of this fiscal year. It covers additional volumes and is priced competitively. Szijjarto said to RIA that we are currently negotiating a contract for next year. Last week, the Russian energy giant announced, without giving any details, that it had signed a memorandum with Hungary regarding a possible increase of sales of Russian Gas.
Azerbaijan's oil production for 9 months down 4.8%, says ministry
Azerbaijan’s oil production fell by 4.8% in the first nine-month period of 2024 to 21.6 millions metric tonnes, down from 22.7million metric tons one year ago, said Energy Minister Parviz Shabazov on Monday. He didn't explain the cause of the decline. Production of oil in Azerbaijan has been declining for several years as the output at Azeri-Chirag-Gunashli complex of offshore oilfields, operated by BP, has passed its peak. Azerbaijan belongs to the OPEC+, a group of major oil producers that has reduced oil production in order to stabilize energy markets.
Naftogaz CEO: Ukraine produces 53 mcm gas per day
The CEO of Naftogaz said that Ukraine produces 53 million cubic meters of natural gas per day, including 43-44 Mcm produced by the state energy group. Oleksiy Cernyshov said Naftogaz had prepared for different scenarios in advance of the winter months, and that it ensured appropriate quantities of gas were stored. According to him, Ukraine currently has less than 13 billion cu m of natural gas in underground storage. He added that non-resident investors have about 0.5 bcm in underground storage. According to the Energy Ministry, the volume of natural gases stored in Ukraine for the winter heating season 2023/24 was approximately 16 bcm.
Minister: German natgas supplies secure without Ukraine transit
The German Economy Ministry said on Tuesday that Germany's and neighbouring countries' natural gas supplies are safe even if the transit through Ukraine was cut off. The ministry stated that Germany's terminals for liquefied gas (LNG), even those without access to the coast, are an insurance against a natural gas shortage, including in countries outside of Europe. Ukraine informed Slovakia Monday that they will not be extending their gas transit agreement between Russia and Ukraine after its expiration at the end 2024. Slovakia, Austria, and Hungary still receive a large proportion of their gas via this route despite the conflict in Ukraine.
Gas prices in Europe are falling, but the geopolitical risks remain
The Dutch and British wholesale gas price fell on Tuesday due to increased wind power and a steady Norwegian supply. However, geopolitical tensions continued to support the prices, which are now near their highest level this year. LSEG data shows that the benchmark front-month contract for the Dutch TTF hub fell by 1.29 euros to 39.61 euros per Megawatt Hour (MWh) at 0834 GMT. The British front-month price fell 0.99 pence to 99.85 pence, while the British day-ahead was 2.75 pence less at 97.25 p/therm. Elexon data shows that the peak wind generation in Britain will increase from 11.9 gigawatts on Tuesday to 15 GW on Wednesday.
Ukraine's Shmyhal talks energy security with Slovakian Fico
Denys Schmyhal, Ukrainian Prime Minister, began Monday talks with Robert Fico of Slovakia. He said the discussions would be centered on infrastructure co-operation, energy security and Kyiv’s peace plan. Fico, along with the Hungarian prime minister Viktor Orban, has been a strong critic of Western military assistance to Ukraine. The location of the meeting was not immediately known. "We will discuss the roadmap" Included in this is cooperation on infrastructure projects, economy and energy security. Shmyhal, on Telegram Messenger, said that Slovakia has always been willing to assist Ukraine in importing electricity.
China will remain the world's largest LNG buyer by 2024-25 according to IEA
Keisuke Sadamori, a director at the International Energy Agency, said that China will remain the top LNG buyer in the world this year and the next due to strong industrial demand. China, which is the second largest economy in the world after the U.S.A., overtook Japan last year as the top LNG buyer, as Japanese demand has been falling due to nuclear reactor restarts and the introduction of renewable energy. Sadamori, a Japanese journalist who spoke at a conference on Monday in Hiroshima, said that the demand for natural gas in China has risen by 10% over the first eight-month period of this year. It is expected to grow by 16% from 2023 by 2025.
Slovakia has a strong interest in ensuring transit of Russian gas and oil via Ukraine
Robert Fico, the Prime Minister of Slovakia, said that the country has a great interest in continuing the flow of oil and gas from Russia through Ukraine to the West. He added that the European Commission was putting pressure on the country to stop these supply flows. Fico said to reporters that the Slovak government and Ukrainian cabinet would meet on Monday. Due to Ukraine's ongoing war against Russia, the central European nation faces disruptions in its key Russian energy supply. Ukraine has said that it will not renew its gas transit agreement with Russia by the end of this year.
Slovak gas buyer SPP continues to talk about extending Ukraine transit
SPP's Chief Executive Vojtech Ferrencz stated on Thursday that the Slovak government-owned gas buyer SPP continues negotiations with Ukraine to extend the gas transit contract after Kyiv’s contract with Russian gas supplier Gazprom expires in the next few months. Ukraine has stated that it does not wish to renew the transit agreement, but certain central European countries depend on Russian gas delivered via pipelines which cross the country. They have secured an exemption from the European Union's ban on Moscow’s gas imports. SPP has taken a lead in attempting to keep transit open, despite Russia's conflict with Ukraine.
As Russia attacks Ukraine's energy infrastructure, the price of gas in Europe is rising.
The Dutch and British wholesale prices of gas closed higher on Monday amid concerns about supply as Russia fired missiles against energy infrastructure in Sumy, a city located north-east Ukraine. LSEG data show that the benchmark front-month contract for the Dutch TTF hub at 1600 GMT was 1.17 euros higher, at 35.37 Euros per Megawatt Hour (MWH), which is $11.81 mmBtu. The benchmark TTF contract fell to its lowest level since July, before recovering slightly in the morning of Tuesday. In the northeast Ukrainian town of Sumy, power was cut in some areas after a drone strike overnight. The authorities were forced to use backup power systems.
Azerbaijani President confident about Ukraine gas route talks
Azerbaijani president Ilham Aliyev expressed Friday confidence in the outcome talks between Russia Ukraine, which his country facilitates to keep Russian Gas flowing through Ukraine into several European nations. Aliyev spoke at the TEHA forum in Cernobbio (Italy), which gathers policymakers and businessmen every September on the shores Lake Como for a discussion of the geopolitical outlook. The European Union (EU) and Ukraine asked Azerbaijan for help in facilitating discussions with Russia about a gas-transit deal due to expire by the end of this calendar year.
S&P upgrades Austria's credit ratings outlook to positive and sees improvements in energy supply
S&P Global Ratings, the credit rating agency, has upgraded Austria's outlook from stable to positive. The improvement in Austria's energy supply and its solid budget situation were cited as reasons for this change. S&P's statement on Friday night said that the positive outlook reflects Austria's potential to improve its energy supply position while its economy remains strong over the next 24 month. The company also confirmed the country's long- and shorter-term foreign currency and local currency sovereign ratings of AA+/A-1+. The agency…
Gas Prices Soar in Europe on Tight Russian Supply
European gas prices soared more than 30% on Tuesday as low supplies from Russia reignited concerns about an energy crunch as the region heads for colder weather.A key pipeline which normally delivers gas from Siberia to Europe continued to work in reverse on Tuesday, traders said, sending flows from Germany to Poland, while supplies of Russian gas from Ukraine to Slovakia were also subdued.Russian energy exports have been in the spotlight amid the country's broader standoff with the West , including over its tensions with neighboring Ukraine…
TurkStream Gas Pipeline Launched
The Presidents of Russia and Turkey, Vladimir Putin and Recep Tayyip Erdogan, respectively, officially launched the TurkStream natural gas pipeline designed to ship Russian gas to Turkey and markets in southeastern Europe.TurkStream, which is laid in the Black Sea, is a link between the gas transmission systems of Russia and Turkey. The gas pipeline has two strings with a combined throughput capacity of 31.5 billion cubic meters. The first string will deliver gas to Turkey, while the second string is intended for gas transit to southern…
Asian LNG Prices Little Changed in Quiet Trade
Asian spot prices for liquefied natural gas (LNG) were little changed this week amid quiet trade and low liquidity.The average LNG price for February delivery into northeast Asia was estimated at around $5.10-$5.20 per million British thermal units (mmBtu)."Demand is still weak following the Christmas and New Year holidays and there is plenty of supply," an LNG trader said.A new gas transit deal struck between Russia and Ukraine last month, which will see Moscow supply Europe for at least another five years, has eased market concern about…
Russia Says Nord Stream 2 Will Be Ready in Months
Russian Prime Minister Dmitry Medvedev said on Monday that the Nord Stream 2 gas pipeline would be completed in a matter of months and U.S. sanctions imposed on the project last week would not be "catastrophic".Russia's new gas transit deal with Ukraine would also mollify the impact on Russian gas supplies of U.S. sanctions introduced on the pipeline project, he said.Last week a major contractor suspended work on the Nord Stream 2 project, which is led by Russia's Gazprom, due to U.S. sanctions introduced by U.S. President Donald Trump on Friday.Around 160 km (100 miles) of the gas pipeline…
Nord Stream 2 Expecting Denmark Approval
The Russian-led Nord Stream 2 gas pipeline company expects to receive approval from Danish authorities for a 180-km stretch of the pipeline under the Baltic Sea in time to finish the pipeline by the end of 2019 as planned, a spokesman said on Monday.Nord Stream 2 spokesman Jens Mueller said there was "good reason" to believe Danish authorities would process a second proposal submitted by the project in August 2018 within eight to 12 months, allowing the pipeline to be finished on schedule.Even if the Danes acted late in the year, the company could bring in additional ships to lay the pipeline…
Merkel: Germany Will Accelerate Plans to Build LNG Terminal
Chancellor Angela Merkel said on Friday that Germany would speed up its plans to build a liquefied natural gas (LNG) terminal as Europe's largest economy seeks to diversify its energy supply.Merkel also said that Ukraine would remain an important gas transit country once the Nord Stream 2 pipeline is built. Critics of the project say it will deprive Ukraine of lucrative gas transit fees and increase the dominance of Russian gas monopoly Gazprom. (Reporting by Reuters Television Writing by Michelle Martin Editing by Thomas Escritt)
Naftogaz Says British Court Grants Gazprom Asset Freeze in UK
Ukraine state oil and gas firm Naftogaz said on Tuesday a London court has granted its request to freeze the British assets of Russia's Gazprom, to enforce an earlier arbitration ruling from Sweden.That ruling, made by the Stockholm arbitration court in February, was meant to conclude a legal battle over gas deliveries. But Naftogaz says Gazprom has not complied with the ruling, which obliged the Russian company to resume gas supplies to Ukraine at market equivalent prices and pay $2.6 billion.Naftogaz has said it would go to court to seize Gazprom assets in Europe, but would not touch Russian gas transit through Ukraine.Reporting by Pavel Polityuk
Merkel, Poroshenko Discuss Gas Transit Through Ukraine
German Chancellor Angela Merkel and Ukrainian President Petro Poroshenko spoke by telephone on Monday about Merkel's visit to Russia last week, efforts to implement the Minsk agreement and gas transit through Ukraine, a spokeswoman said."Both parties agreed to remain in close contact on these issues and to deepen cooperation," Martina Fietz, a spokeswoman for the German government, said in a statement.Merkel held talks with President Vladimir Putin in Sochi, Russia, on Friday, and stressed the need for the continuation of gas transit via Ukraine even after the completion of the Nord Stream 2 gas pipeline, which will circumvent the country.Reporting by Michelle Martin
