Russian Oil and Gas Industry: News

Preparation for Nord Stream 2 to begin in Sweden in coming months

Earlier on Thursday, the Swedish minister announced that the Swedish government had given permission for the construction of the Nord Stream 2 gas pipeline

STOCKHOLM, 7 June. / TASS / Preparations for the construction of the Nord Stream 2 gas pipeline in Sweden will begin in the coming months, Nord Stream 2 AG reported on Thursday, after receiving a construction permit from the Swedish government.

"The preparation works on the sea floor is certain areas along the Swedish part of the route will begin in the coming months, and the laying of pipes in the economic zone of Sweden is planned to begin this year," the report says.

"The preparatory work was started some time ago from the storage of pipes in the Swedish harbor of Karlshamn. We have now obtained all permits in Sweden. The next step is the preparation of the bottom before laying down of the pipes," the representative of Nord Stream Lars Gronstedt explained to TASS.

Nord Stream 2 AG has already received a full set of permits for the construction and the operation of the gas pipeline in Germany and Finland. The procedures for obtaining permits in Denmark are on schedule.

Earlier on Thursday, the Swedish Minister of Entrepreneurship and Innovation Mikael Damberg announced that the Swedish government had given permission for the construction of the Nord Stream 2 gas pipeline in the Swedish economic zone in the Baltic Sea.

"The government has given permission for the Nord Stream 2, to lay a gas pipeline in the Swedish economic zone in the Baltic Sea, Sweden just cannot reject this project," the minister said.

Damberg reminded that the government considered the Nord Stream 2 application in accordance with the international law and conventions that do not allow the Cabinet to give a negative response to the gas pipeline project.

"But I want to emphasize that the government has a negative attitude towards the project as a whole, since there is a risk that it contradicts the goals of the Energy Union, and also because of the consequences for Ukraine as a transit country for Russian gas, because of significant economic losses, which could arise," added Damberg. He believes that the EU "should reduce dependence on Russian gas" as an instrument of "political pressure."The process of obtaining permits in Sweden began in the fall of 2016. A comprehensive environmental impact assessment (EIA) was carried out, which is a mandatory step in the process of obtaining a permit. EIA and comments received in the course of public discussions became the basis for deciding whether to issue the permit.

Commissioning of the Nord Stream 2 gas pipeline is scheduled for the end of 2019. The pipeline will stretch across the bottom of the Baltic Sea from the Russian coast to the coast of Germany. The throughput capacity of each of the two lines is 27.5 bln cubic meters a year.

The Nord Stream 2 pipeline will bypass the transit states - Ukraine, Belarus, Poland and other Eastern European and Baltic countries. The gas pipeline will pass through the exclusive economic zones and territorial waters of five states - Russia, Finland, Sweden, Denmark and Germany.


More:
http://tass.com/economy/1008590

Russian oil output jumps to 11.193 mln bpd in early July- source

https://www.reuters.com/article/oil-opec-russia/russian-oil-output-jumps-to-11-193-mln-bpd-in-early-july-source-idUSL8N1U12W8?rpc=401&

Russian energy chief blasts ‘absurd’ US bill to sanction Nord Stream 2 investors

KHABAROVSK, July 20. /TASS/. Russian Energy Minister Alexander Novak has castigated a US bill on introducing sanctions against investors of the Nord Stream 2 project, branding it absurd and illogical.

"I did not see this proposed legislation, it should be studied from a legal point of view. It is quite a ludicrous bill that will invalidate all market rules. In my opinion, it is absurd and strange," he told reporters.
On Wednesday, Senator John Barrasso, a Republican from Wyoming, introduced a bill to slap sanctions on investors in Russian energy export projects, including the Nord Stream 2 gas pipeline project. The proposed legislation includes restrictive measures against parties investing in Russian energy export projects, providing guarantees for loans to carry out these projects, or supplying goods and services for such a project to the Russian side. The bill also contains steps to promote exports of natural gas from the United States.

Nord Stream 2 is a project to expand the existing Nord Stream main gas pipeline, connecting Russia and Germany along the bottom of the Baltic Sea, bypassing the transit states of Ukraine, Belarus, Poland and other Eastern European and Baltic countries. In general, the pipeline mirrors the Nord Stream route, and will pass through the exclusive economic zones and territorial waters of five states - Russia, Finland, Sweden, Denmark, and Germany. Its length will be more than 1,200 km, and its throughput capacity will be 55 bln cubic meters of gas per year. Nord Stream 2 is scheduled for commissioning by the end of 2019.

http://tass.com/economy/1014202

USA is increasing pressure non stop to derail Nord Stream 2 at all costs. This is an economic war, Russia needs to respond more firmly.

Respond to what exactly? And how?

Simply, it is up to EU. If EU decides against the Nord Stream 2 in the end, Russia can sue them for costs that were accumulated in the process. Then, force EU to purchase Russian gas as LNG. EU will end up buying it over US one cause it is still cheaper. But it is more expensive than pipeline.

All Russia can do to US is sanction more US products. Thats about it. Trade between the two nations is very little.

https://sdelanounas.ru/blogs/110023/

Turkey began laying the supply to the gas pipeline "Turkish stream"

The project company "Turkish stream" (TurkStream) began laying connecting pipeline from the village Kyukei in Turkey to the main tube in the Black sea.

Laying began on July 22, work will last "four to eight weeks." Just have to pave 2.4 km pipeline that will run from the Turkish coast across the seabed to the point of arrival of the main pipe, said TASS. Independent experts prepared the report on the evaluation of the impact of the withdrawal on the environment and have drawn the conclusion most favourable route of this area with regard to fisheries in the area.

The report was prepared after "comprehensive consultations with the associations of fishermen and community organizations" and approved by government agencies in 2017 "In accordance with the adopted calendar gas deliveries expected to begin in late 2019, We are satisfied that work is proceeding according to this schedule. We will make every effort to progress on the coast of inconvenience for local residents was kept to a minimum", — said the representative of TurkStream sander van Rootselaar. Gazprom launched construction of the offshore section of the gas pipeline "Turkish stream" in may 2017. The offshore section of Turkish stream will pass under the Black sea from Russia's coast to the coast of Turkey. The length of the plot is 930 km, and Then the builders will lay the land transit thread a length of 180 km up to the border of Turkey with the EU. Laying pipes is engaged in the ship Pioneering Spirit. In April, the ship completed laying the first line of the offshore section of the pipeline, and at the end of June "Gazprom" resumed the laying of the second string. The first line is intended for the Turkish market, the second — for the gas supply countries in southern and South-Eastern Europe. The capacity of each thread will reach 15.75 billion cubic meters of gas per year.

Russia’s Energy Ministry raises forecast for oil production in 2018 by 3.5 mln tonnes

More:
http://tass.com/economy/1014743

Trump’s European Gas Plans Aren’t Realistic

Well it seems that someone in Germany started laying down pipes in platonic manner

I take it that this means that North Stream 2 is a go?

https://sdelanounas.ru/blogs/110528/

Massive.Construction of the Amur Gas Processing Plant.

The Amur Gas Processing Plant (GPP) near the city of Svobodny, Amur Region, will be the largest such plant in Russia and one of the biggest in the world. It will serve as an essential link in the process chain of natural gas supplies to China via the "Power of Siberia"a gas pipeline.

With construction at its peak, the project will involve some 15,000 people, including Amur Region citizens. When the plant opens, it will employ around 3,000 people.

In order to accommodate future employees, a residential district for 5,000 people will be built in Svobodny. It will include apartment houses, an outpatient clinic, a kindergarten, a school, a sports center, a cultural center with a concert hall, and a children’s art center.

In addition to processing units and off-site facilities, the project provides for the construction of access roads, railway communications, a wharf on the Zeya River, and a residential district in Svobodny for future employees.

Figures and facts

Design processing capacity: 42 billion cubic meters of natural gas per year.

Helium production: up to 60 million cubic meters per year.

Ethane production: around 2.5 million tons per year.

Propane production: around 1 million tons per year.

Butane production: around 500,000 tons per year.

Pentane-hexane fraction production: around 200,000 tons per year.

Production trains: 6.

Plant’s area: 800 hectares.

The plant will receive multi-component gas from the Yakutia and Irkutsk gas production centers, which are being established by Gazprom within the Eastern Gas Program. The processed gas will be delivered to China.

Ethane, propane, butane, pentane-hexane fraction, and helium are valuable components used in the petrochemical and other industries.

More: http://www.gazprom.com/about/production/projects/amur-gpp/

https://sdelanounas.ru/blogs/111535/

Russia increased the export of LNG to Asia-Pacific for eight months by 48.2%

The export of liquefied natural gas (LNG) from Russia to countries in the Asia-Pacific region in January — August 2018 rose compared to the same period last year by 48.2% to 15 bn CB m. this is stated in the materials of the Central dispatching management (TSDU) the TEK.
In August, the LNG exports had declined from August by 22% to 0.9 bn CB m.

Russia now has two LNG production plant: Russia's first project "Sakhalin-2" which operator is Sakhalin Energy, and launched in December 2017, the Yamal LNG project of NOVATEK. According to the Minister of energy Alexander Novak, the country can increase its share in the LNG market from the current 4% to 15-20% by 2035.

The main resource base of LNG is in the North — on the peninsulas of Yamal and Gydan, where gas reserves exceed 38 trillion KB M. Nowak noted that the supply with LNG projects will not come at the expense of deliveries of pipeline gas.

Russia started laying the Nord Stream 2 gas pipeline in the Gulf of Finland in the Finnish territorial waters.

Forbes reports: "Russia's Controversial Nord Stream 2 Pipeline May Now Be Unstoppable"

This afternoon, a ship called Solitaire in the Gulf of Finland started laying the first deep water pipes for the controversial Nord Stream 2 project – a strong signal that the new pipeline from Russia to Germany is now unstoppable.

Until today, construction on the pipeline has been limited to onshore and territorial waters at the Russian departure point near Saint Petersburg and the German arrival point near Greifswald.

Solitaire, which is carrying 420 workers, will lay pipes around the clock seven days a week – assembling the 12-metre, 24-ton pipes on-board before laying them on the sea bed. Three kilometres of offshore pipe can be laid on the sea bed per day, and Nord Stream expects to complete the pipeline by the end of next year.

The rapid pace of construction has raised eyebrows because it is happening even as the project seems to be in political peril. In Germany more and more politicians are speaking out against the pipeline and Chancellor Angela Merkel has sometimes appeared to be wavering in her support.

The pipeline’s detractors, which include almost all the governments of Eastern Europe, say the pipeline puts the European Union’s energy security at risk because it makes the bloc more dependent on Russian gas. They also say it is designed to punish Kiev, enabling Russia to shut down its existing pipeline bringing gas to the EU through Ukraine. The United States is supporting them in their objection.

In July, U.S. President Donald Trump went on a now-notorious public rant against the pipeline, accusing Germany of making itself “completely dependent” on Russian gas. He has also threatened to sanction European companies who invest in the pipeline.

More:

https://www.forbes.com/consent/?toURL=https://www.forbes.com/sites/davekeating/2018/09/05/as-of-today-russias-controversial-nord-stream-2-pipeline-is-already-underwater/#5d9ed0cc1e1c

Poland is all of eastern europe?

Russian Oil Production Hits Post-Soviet Record

https://oilprice.com/Energy/Energy-General/Russian-Oil-Production-Hits-Post-Soviet-Record.html

Russia Has Potential To Boost Oil Production By Several Hundred Thousand Bpd - Novak

https://www.urdupoint.com/en/business/russia-has-potential-to-boost-oil-production-438573.html

Offshore is the magic word. Lot of oil in front of the russian coast.

Nord Stream 2 Operator Laid Over 18 Miles Of Pipes In German Waters - Spokesman

https://www.urdupoint.com/en/business/nord-stream-2-operator-laid-over-18-miles-of-440466.html

I found this on NordStream2 quite interesting. Ignore the headline.

https://tomluongo.me/2018/09/21/trump-folds-nordstream-2-logic/

Schlumberger To Buy Russia's Leading Drilling Company

https://oilprice.com/Energy/Crude-Oil/Schlumberger-To-Buy-Russias-Leading-Drilling-Company.html

Russia’s September Oil Production Set For Post-Soviet Record High

Russia’s oil production averaged 11.347 million bpd between September 1 and 27, up by more than 130,000 bpd compared to August and on course to set a new record-high in the post-Soviet era, Reuters reported on Friday, citing a source in the energy sector.

https://oilprice.com/Latest-Energy-News/World-News/Russias-September-Oil-Production-Set-For-Post-Soviet-Record-High.html

Russian oil companies to be obliged to refine oil
https://vestnikkavkaza.net/news/Russian-oil-companies-to-be-obliged-to-refine-oil.html

Russia's energy, finance and economic development ministries will oblige Russian oil companies to send at least 17.5% of their annual production to domestic oil refineries, according to the instruction given by Russian Prime Minister Dmitry Medvedev following the governmental meeting.

The document was published on the Russian government's website. The amendments providing for obligations to send oil to refineries capable of producing motor fuel must be prepared before October 10, RBC noted.

The Kommersant reported in August, citing its three source in the industry, that the proposal came from Rosneft, which owns 13 major oil refineries.

A leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov, speaking to Vestnik Kavkaza, noted that quotas for oil refining is a logical consequence of the tax maneuver, which transfers the burden from the oil industry workers to the wells. "Previously, oil companies paid an oil and gas production tax and duty on oil exports, which provided cheaper oil for the domestic market. Now the situation will be different: export taxes are abolished, an oil and gas production tax increases, so supplying domestic markets is not as profitable as the export of raw materials. In order to protect the needs of the domestic market, they are developing such mechanisms," he explained.

"By the way, the question arises why there was a need to invent a tax maneuver in the oil industry at all, if the state then donates the money received in the form of a reverse excise tax to oilmen and forces them to supply oil to refineries and process them," Igor Yushkov said.

Deputy director of energy policy of the Institute of Energy and Finances, Alexey Belogoriev, agreed with Yushkov. "This is a security measure in the framework of the new tax maneuver in order to avoid a shortage of motor fuel in the domestic market, after the companies start exporting more oil due to a decline in export duties. In general, such measures are not quite market in nature,due to the fact that the role of state regulation in the industry is increasing," he said.

"If we talk about large companies, then no costs emerge here for them, since they supply more than 16% of produced oil to the domestic market. It will be difficult to predict how it will be implemented by companies which do not have their own refining. Not all small and medium-sized companies can provide such a level of refining, although the majority in this sector supply a much larger share of oil to the domestic market,” Aleksey Belogoryev added.

Gazprom constructed 95.5% of Power of Siberia pipeline

Over 2,000 km of pipes were welded and laid

MOSCOW, October 26. /TASS/. Gazprom built 95.5% of the Power of Siberia gas pipeline, including welding and laying of 2,064 km of pipes from Yakutia to the border with China, the company said in its press release on Friday.

"2,064 km of pipes were welded and laid on the segment of the Power of Siberia gas pipeline from Yakutia to the Russia-China border, which totals 95.5% of its length. Construction readiness of the two-line underwater crossing of the Power of Siberia over the Amur River is 90%. Pipe pulling in both tunnels was completed. Construction of Atamanskaya border compressor station continues," Gazprom says.


More:
http://tass.com/economy/1028089

Lukoil to discuss early oil production start at Block 10 with Iraq

CEO Vagit Alekperov said protests in Iraq have not affected the company's operations in the country

ABU DHABI, November 12. /TASS/. Lukoil plans to discuss the start of early oil production on Block 10 where the next exploration well is drilled with the government of Iraq, Chief Executive Officer of the Russian oil producer Vagit Alekperov said on Monday.

"I hope to meet the newly elected Prime Minister in November. Following completion of drilling this well, we expect to raise an issue of starting early oil production, to put the Block 10 into service. Up to 50 thousand barrels [per day] provisionally," Alekperov said. No endorsement has been available from the Iraqi side so far and negotiations have not yet started, he said. If the government of Iraq agrees upon early oil production in the project, then the company will need 2-3 years to start production," he added.

Protests in Iraq have not affected operations of the company in the country, Alekperov said. "We continue the investment cycle. We are to reach the production level of 480 thousand barrels per day by 2020 and 800 [thousand] by 2024. We have no doubts we will reach this level," the top manager said.


More:
http://tass.com/economy/1030408

Russia Hit New Post-Soviet Record For Oil Production In October - OPEC Report

Russia hit a new post-Soviet record for oil production in October, producing on the average 11.6 million barrels per day, the Organization of the Petroleum Exporting Countries (OPEC) said in its Monthly Oil Market Report released Tuesday.

MOSCOW (UrduPoint News / Sputnik - 13th November, 2018) Russia hit a new post-Soviet record for oil production in October, producing on the average 11.6 million barrels per day, the Organization of the Petroleum Exporting Countries (OPEC) said in its Monthly Oil Market Report released Tuesday.

"Russia has hit a new post-Soviet record for oil production in October, an increase of 0.

05 mb/d from the previous month to average 11.60 mb/d, according to preliminary estimates," it said.

OPEC also said oil production in Russia would grow to an average 11.24 million barrels per day in 2018-2019.

"Oil production in Russia and Kazakhstan is estimated to grow by 0.07 mb/d and 0.09 mb/d to average 11.24 mb/d and 1.82 mb/d, respectively. For 2019... Russia's oil supply is likely to remain unchanged y-o-y at 11.24 mb/d," OPEC said.

https://www.urdupoint.com/en/business/russia-hit-new-post-soviet-record-for-oil-pro-479730.html

Three Tankers With Russian LNG Recently Sent To US - Russian Foreign Ministry


Russia has already sent three tankers with its liquefied natural gas (LNG) to the United States despite Washington's outspoken opposition toward Moscow, spokeswoman for the Russian Foreign Ministry Maria Zakharova said Thursday.
"Speaking of logic, do not forget that it should be present. With all this visible public negativity from Washington [toward Russia], oddly enough, Russian liquefied natural gas is being successfully sent in that direction. Recently, at least three tankers, which were filled with liquefied natural gas from the Yamal LNG field, have reached the American shores," Zakharova told a briefing.


https://www.urdupoint.com/en/business/three-tankers-with-russian-lng-recently-sent-481914.html