Saipem Settles South Stream Dispute
South Stream Transport, which is responsible for the construction and operation of the TurkStream Offshore Pipeline, and the Italian oil and gas industry contractor Saipem have settled the arbitration concerning the South Stream offshore pipeline installation contract entered into on March 14, 2014.The subsidiary of Italian energy company Eni said in a release that the companies have positively ended their negotiations signing an agreement to amicably settle the arbitration.In December 2014, Russia, citing the EU's unconstructive position, gave up on South Stream in favor of a new gas pipeline toward Turkey (TurkStream).
TurkStream Gas Conduit Offshore Section Complete
The pipe-laying vessel Pioneering Spirit pipelaying vessel completed the construction of the offshore section of the TurkStream gas pipeline in the Black Sea. The TurkStream pipeline will carry Russian gas across the Black Sea to Turkey.The command to weld the final joint of the gas pipeline’s second string was given by Vladimir Putin, President of the Russian Federation, and Recep Tayyip Erdogan, President of the Republic of Turkey.“Construction of TurkStream – a new gas pipeline connecting Russia and Turkey via the Black Sea – is entering its final stage.
Serbia, Russia Revive Gas Pipeline Plans
Russia and Serbia have revived an idea of building a gas pipeline in the Balkan country, a project that would enable Gazprom to step up its gas supplies to Europe, bypassing Ukraine. The Serbian pipeline will be linked to Bulgaria and Hungary via two interconnectors to ship Russian gas from the TurkStream pipeline. The Vienna-based Energy Community Secretariat, which transposes EU energy standards to aspiring member states, criticised the project saying the true aim was to bring Russian gas from TurkStream to the Baumgarten hub near Vienna, not to diversify gas supplies to Serbia.
Saipem Confirms Profit Guidance
Italian oil services group Saipem swung back to profit in the third quarter despite an industry slowdown, flagging more orders on the way and confirming profit guidance. Its shares were up almost 10 percent at 1133 GMT while the oil and gas sector across Europe was up 0.5 percent. Oil service companies have been struggling to fill order books as oil majors defer projects and cut billions of dollars in costs to offset low crude prices. Saipem Chief Executive Stefano Cao told analysts the market outlook remained challenging with majors still not stepping up spending or accelerating final investment decisions.
Hungary Joins Gazprom Pipeline, as Trump Touts US LNG
Hungary signed a deal with Russia's Gazprom to link the country with the Turkish Stream pipeline by end-2019 on Wednesday, a day ahead of President Donald Trump's trip to Poland, where he is expected to promote U.S. LNG exports. "This will improve Hungary's energy security a great deal, so it is in our strategic interest for this cooperation to start," state news agency MTI quoted Foreign Minister Peter Szijjarto as saying. Natural gas supplies to eastern Europe have been a major area of competition between incumbent pipeline power Russia and the United States…
Italy Watchdog Auditing Saipem for Impairment Charges
Italy's market regulator started an audit of Saipem in November to gather information on write downs the oil service company booked last year, Saipem said in its annual report. The Italian oil contractor announced impairments on a string of assets of around 2.1 billion euros ($2.2 billion) last October. In its yearly report Saipem also said South Stream Transport BV (SSTBV), owned by Russia's Gazprom, had filed damages against it for around 541 million euros for alleged misrepresentation in an arbitration case revolving around a defunct pipeline project.
Bulgaria Gas Group says Gets EU Funds for Gas Hub Study
Bulgaria's gas network operator Bulgartransgaz said it will get financing from the European Union for a feasibility study on a natural gas hub at the Black Sea port of Varna to store and transport Russian and Caspian gas to southeast and central Europe. Sofia's plans for the hub follow the cancellation of Gazprom's South Stream gas pipeline project that would have shipped Russian gas under the Black Sea via Bulgaria to central Europe. The cancellation was a blow to Bulgaria, which relies almost exclusively on Russian gas.
Gazprom eyes Rival TAP Pipeline
TAP aims to reduce EU dependence on Russian gas, but Gazprom could gain access via open auction. Gazprom's bid to tap into a pipeline meant to wean Europe off Russian gas threatens to undermine a pillar of European energy policy and slow plans to develop rival deposits in the east Mediterranean. As the European Union struggles against the "iron embrace" of Russian pipelines, it has made opening a new Southern Gas Corridor to carry gas from Azerbaijan by 2020 a priority. The 10 billion cubic metre (bcm)-capacity Trans Adriatic Pipeline (TAP) is the project's end piece…
Naftogaz CEO says EU Should Block Nord Stream-2
The chief executive of Ukraine's state energy firm Naftogaz on Friday said the European Union should block the Nord Stream-2 gas pipeline as it would give Russia too much leverage over Germany, Poland and Slovakia. "There is an easy legal way (to stop it). The EU should apply the same logic like with South Stream, apply the Third Energy Package, then you can't build Nordstream 2. Legal arguments have been overlooked so far," Naftogaz Chief Executive Andriy Kobolev told Reuters in an interview. The EU's Third Energy Package sets regulations that seek to prevent energy suppliers from dominating infrastructure.
Gazprom: Work on Underwater Section of Turkstream to Begin in H2 2017
Work on the underwater section of the Turkish Stream pipeline will get underway in the second half of next year, Alexei Miller, chief executive of Russian gas giant Gazprom, told journalists on Tuesday. Miller also said that both lines of the underwater section, one that will ship gas to the Turkish market and a second with gas destined eventually for Europe, will come on stream by the end of 2019. Where that gas from the second line will come ashore in Europe has yet to be finally determined. Gazprom…
Bulgaria, Romania Launch Gas Pipeline
Bulgaria and Romania started a new natural gas pipeline on Friday as part of Sofia's efforts to reduce dependence on Russian gas. The 25-km pipeline, which runs under the Danube River and can operate in either direction, will allow Bulgaria to import gas from Europe. It will also support Bulgaria's bid to create a regional gas hub at the Black Sea port of Varna. "We can achieve a lot with our friends and neighbours from Romania... they are starting operations from today," Bulgarian Prime Minister Boiko Borisov told an opening ceremony at the Danube river town of Marten.
Russia Hasn't Dropped Idea of New Gas Route to South Europe
Russia still wants a new pipeline route to export gas to southern Europe despite the cancellation of the South Stream gas project, President Vladimir Putin said on Friday. Putin said the expansion of the Nord Stream pipeline, under the Baltic Sea, was not an alternative to the cancelled South Stream route. He also said Russia was not turning its back on exporting gas to Europe via Ukraine, but that it was vital there were alternative routes too. (Reporting by Alessandra Galloni; Writing by Christian Lowe; Editing by Catherine Evans)
Fick Appointed M.D. Gazprom EP International
Andrey Fick has been appointed Managing Director of Gazprom EP International B.V. by resolution of the company's General Shareholders Meeting. Andrey Fick was born in the Krasnodar Territory, Russia, in 1969. He graduated from the Krasnodar Polytechnic Institute in 1993, majoring in Engineering Technologies. He obtained his second university degree from the Kuban State Technological University in 2000, majoring in Cryo-Engineering. He has an MBA degree and a PhD degree in Engineering. He has been a member of Gazprom's team since 1996.
Azerbaijan Expects to Secure TAP Gas Pipeline Finance in April
Azerbaijan expects to secure in April full financing for the Trans Adriatic Gas Pipeline (TAP), seen as an alternative for Russian gas supplies to Europe, Azeri Energy Minister Natig Aliyev said on Monday. The Southern Gas Corridor project, of which TAP is a part, is expected to cost around $45 billion. "The talks are under way. The issues of TAP financing will be completely solved on April 28," Aliyev told reporters, declining to say why that exact date was chosen. TAP's shareholders are BP, Azeri state company SOCAR, Snam, Fluxys, Enagas and Axpo .
Moody's Reviews Saipem's Rating
San Donato Milanese (Milan), February 10, 2016 – Saipem S.p.A., informs that today Moody’s, through the publication of a press release on its website [www.moodys.com] given below has communicated that it has placed under review the provisional issuer rating of "(P) Baa3 " attributed to Saipem, for a possible downgrade. Saipem was assigned its provisional rating, and which has caused Moody’s to downgrade its expectations for future oil prices. • On the potential impact of the weaker market context on Saipem’s future ability to generate cashflows in line with the strategic plan.
Saipem to Appeal Algeria Fine over Gas Pipeline Contracts
Italian oil services group Saipem said on Tuesday it would appeal an Algerian court ruling ordering one of its units to pay a 34,000 euro ($37,104) fine for allegedly inflating prices on contracts to build a gas pipeline. The market is closely monitoring Saipem's various legal cases, hoping for signs of reprieve after a fall in orders as oil majors cut investments following a slump in the oil price. The company, which is jointly controlled by oil major Eni and state lender fund FSI, is also in the midst of a highly-dilutive 3.5 billion euro rights issue as it seeks to turn its business around and ensure survival.
Russia Stuck with Abandoned Gas Pipes Worth Billions
Gas pipes worth 1.8 billion euros ($1.95 billion) are to be left stranded on the shores of the Black Sea after Russia's decision to suspend work on the Turkish Stream pipeline, a potent symbol of Moscow's falling out with Ankara. Russia has set out to punish Turkey after it shot down a Russian warplane in Syria last week, imposing trade sanctions and releasing data it claims proves Turkish President Tayyip Erdogan is involved in illegal oil deals with Islamic State. Russian Energy Minister Alexander Novak told reporters on Thursday work on Turkish Stream…
Croatia's LNG Hrvatska Extends Bid Deadline for LNG Terminal
Croatian liquefied natural gas (LNG) terminal developer LNG Hrvatska has extended a deadline for investors to express interest in building a terminal in the northern Adriatic to Dec. 31 as part of the country's drive for energy independence. The company gave no reason for the deferral and did not say what level of interest it had received so far. The previous deadline was Dec 15. The terminal on the island of Krk is also part of wider European efforts to reduce its reliance on Russian energy supplies and gained new importance following the cancellation of the South Stream project.
Russia's Gazprom to Halve TurkStream Pipeline Capacity
Gazprom has almost halved the planned capacity of its TurkStream gas pipeline project to 32 billion cubic metres (bcm) per year from an original capacity of 63 bcm, Gazprom Chief Executive Officer Alexei Miller said on Tuesday. The TurkStream pipeline is an alternative to Russia's South Stream pipeline project to bring gas to Europe without crossing Ukraine, which was dropped last year due to objections from the European Commision. Russia has long sought to circumnavigate Ukraine to pipe its gas to Europe because of pricing disagreements, which have led to disruptions in supplies to the European Union.
Cheniere LNG Could Dent Russian Gas Dominance in SE Europe
Cheniere Energy Inc plans to deliver liquefied natural gas (LNG) to central and southeastern Europe within a few years, a move that with U.S. supplies would loosen Russia's energy grip on the region, sources told Reuters. The Houston-based LNG specialist, which is gearing up to launch western European operations this year, is eyeing an eastern expansion, said six sources close to either Cheniere or governments and companies in the region. Speaking on condition of anonymity, they said Cheniere was looking at bringing a floating regasification terminal to Croatia.
