MOSCOW/MILAN, July 9 (Reuters) - Russia's plans to drop Ukraine eventually as a route for piping its natural gas to Europe have hit a snag after Russian gas exporter Gazprom called off a deal with Italy's Saipem to build a subsea link to Turkey.
...
The now-terminated Saipem contract - worth 2.4 billion euros ($2.7 billion) - is the latest in a string of failed attempts by Gazprom to diminish Ukraine's role in its gas exports.
The cancellation also puts a question mark over Gazprom's goal of building gas pipelines to Turkey and further to southern Europe via the Black Sea with a total capacity of 63 billion cubic metres (bcm) a year, in what would be the world's largest undersea gas infrastructure.
An industry source told Reuters on Wednesday that Gazprom had told pipeline makers to suspend deliveries of pipes for expanding Russia's network so it could be connected to the so-called TurkStream project. Russia and Turkey are yet to agree on terms of the link.
Keith_McClary wrote:Russia's efforts to bypass Ukraine gas route stall as Saipem deal abortedMOSCOW/MILAN, July 9 (Reuters) - Russia's plans to drop Ukraine eventually as a route for piping its natural gas to Europe have hit a snag after Russian gas exporter Gazprom called off a deal with Italy's Saipem to build a subsea link to Turkey.
...
The now-terminated Saipem contract - worth 2.4 billion euros ($2.7 billion) - is the latest in a string of failed attempts by Gazprom to diminish Ukraine's role in its gas exports.
The cancellation also puts a question mark over Gazprom's goal of building gas pipelines to Turkey and further to southern Europe via the Black Sea with a total capacity of 63 billion cubic metres (bcm) a year, in what would be the world's largest undersea gas infrastructure.
An industry source told Reuters on Wednesday that Gazprom had told pipeline makers to suspend deliveries of pipes for expanding Russia's network so it could be connected to the so-called TurkStream project. Russia and Turkey are yet to agree on terms of the link.
UFA, July 9. /TASS/. The cancelation of contract between Russia’s gas giant Gazprom and Saipem contractor won’t affect the terms of the construction of the Turkish Stream pipeline and is a technical issue, Energy Minister Alexander Novak told reporters on Thursday.
"The implementation of the project is going on. Together with our Turkish partners we are continuing to finalize intergovernmental agreements. It is a technical issue which is being solved by Gazprom and technical agencies".
Bank of America Merrill Lynch said in a note that Gazprom should reject plans to lay costly undersea gas pipelines and engage with Ukraine instead.
"We believe that a better solution for Gazprom would be to join forces with the EU and Ukraine to upgrade Ukraine's existing infrastructure," it said.
Withnail wrote:Bank of America Merrill Lynch said in a note that Gazprom should reject plans to lay costly undersea gas pipelines and engage with Ukraine instead.
"We believe that a better solution for Gazprom would be to join forces with the EU and Ukraine to upgrade Ukraine's existing infrastructure," it said.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Tanada wrote:Withnail wrote:Bank of America Merrill Lynch said in a note that Gazprom should reject plans to lay costly undersea gas pipelines and engage with Ukraine instead.
"We believe that a better solution for Gazprom would be to join forces with the EU and Ukraine to upgrade Ukraine's existing infrastructure," it said.
Never mind all that war and civil disturbance going on in Ukraine, fighting never gets in the way does it? Imagine what happens in the EU is anyone from any side were to blow up a section of that pipeline and stop the flow of gas for a week or even a couple months? Back when the USA was heavy in Iraq there were frequent oil pipeline closures from random unpleasant people sneaking up to the pipeline and blowing holes in it with grenade like objects. Every time it happened the flow had to be shut off so repairs could be made. With a gas pipeline its even easier, a few armor piercing rifle bullets will let gas escape pretty easily.
A Boston firm is working to build nearly two dozen biofuel factories in Ukraine to help reduce the war-torn country’s reliance on Russian natural gas.
“These people are suffering, their lives have turned to mud and dirt,” said Rod Robertson, chief executive of the Ukraine Agro Valley Association. “We’re not on the Kremlin’s Christmas card list for doing this.”
The association plans to build 20 factories across the country that would make biofuel pellets made from a crop called miscanthus. Each factory would be surrounded by 10,000 acres of farmland for the crops. Miscanthus, which is similar to corn, would be harvested, dried and compressed to make pellets that can be burned for fuel. Miscanthus is widely regarded as one of the best crops to make biofuels with, Robertson said, but it initially will have to be brought into the country.
The pellets could be used to heat buildings and eventually run power plants, he said.
“It burns 10 times brighter than straw,” Robertson said.
The heat and power generated by the pellets that 20 factories and 200,000 acres of miscanthus could produce will make a real impact on where the country gets most of its energy.
“It conceivably could generate enough electricity in the large cities,” he said.
Each factory will cost roughly $20 million to build. The association is hoping to find the $400 million necessary for the 20 factories through U.S. and European government funding.
Ukraine has been trying to reduce its dependence on Russia for natural gas after the conflict in Crimea. The country gets much of its gas from Russia, and the ability to heat homes and power buildings is often at the whim of Russian leaders. Earlier this year, Ukraine stopped buying natural gas from Russia after a price dispute amid an ongoing territorial dispute. Russia annexed Crimea and is accused of supporting eastern Ukraine’s ethnic Russian separatists.
“These people are going to have a hard time heating their homes in the winter, it’s survival for these people,” Robertson said. “The whole country needs it.”
He said the factories are likely to begin operating by 2017, but the crops need to be planted a year before.
“We would like to start building factories, we would like to the get the funding in place by the end of this year,” he said. “This is one of the biggest talked-about projects in the Ukraine.”
radon1 wrote:Btw, Rosneft and other Russian oil cos have managed to maintain their profitability due to the devaluation of ruble and the so-called "tax maneuver". Their shares are up since the beginning of the year in dollar terms while the western oil cos have plunged dozens of the percentage points.
As the population foots the bill, some are flourishing.
radon1 wrote:Btw, Rosneft and other Russian oil cos have managed to maintain their profitability due to the devaluation of ruble and the so-called "tax maneuver". Their shares are up since the beginning of the year in dollar terms while the western oil cos have plunged dozens of the percentage points.
As the population foots the bill, some are flourishing.
americandream wrote: So when they ran a collectivised society, that was not good enough. Now they are free to earn what they will as is the case in the West, that is still not good enough.
Users browsing this forum: No registered users and 74 guests