Oil Pipeline – Storm Field Services LLC http://stormfieldservicesllc.com/ Tue, 02 Aug 2022 18:44:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stormfieldservicesllc.com/wp-content/uploads/2021/05/storm-field-services-llc-icon-1-150x150.png Oil Pipeline – Storm Field Services LLC http://stormfieldservicesllc.com/ 32 32 Shell to deploy surveillance drones to pipelines and wellheads to combat oil theft – https://stormfieldservicesllc.com/shell-to-deploy-surveillance-drones-to-pipelines-and-wellheads-to-combat-oil-theft/ Tue, 02 Aug 2022 18:44:10 +0000 https://stormfieldservicesllc.com/shell-to-deploy-surveillance-drones-to-pipelines-and-wellheads-to-combat-oil-theft/

The Shell Petroleum Development Company (SPDC) has signed a contract to acquire drones to monitor its pipelines and wellheads in the Niger Delta.

SPDC’s director general of external relations, Igo Weli, made the point during a press conference in Port Harcourt on Tuesday.

He said the company decided to acquire drones due to frequent attacks on its pipelines, resulting in huge revenue losses due to the activities of oil thieves and pipeline vandals.

According to him, the oil thieves breached the SPDC’s pipelines and wellheads, then redirected the crude oil to their illegal refining sites, depriving the company of needed revenue.

“To this end, we have signed a contract and will soon start using drones to monitor our pipelines, wellheads and other facilities.

“Shell does so much to protect its assets in Nigeria,” he said.

Weli said frequent attacks on its oil and gas facilities by organized criminals had worsened over the years, forcing the company to spend huge funds to protect its facilities.

“Some of the other amazing things we do as a company are flying helicopters every day to check the pipelines, which is very expensive for the company.

“Even when we see illegal refineries, we can’t do much other than draw the authorities’ attention to it.

“The SPDC builds cages and installs technology to protect its wellheads – just as we install burglary protections in our homes to keep thieves away.

“It is worrying and should be of concern to everyone, knowing that oil and gas are the sectors where the country generates huge currencies and creates jobs for millions of people,” he added.

SPDC’s chief executive said the company also collaborates with security agencies by sharing data on the locations and activities of illegal bunkers and refinery sites.

He said the purpose of sharing the data was to ensure the threat was resolved, to improve the business and working environment.

Weli said governments at the state and federal levels had done their best to deal with the threat, but more needed to be done to end the threat.

“That’s why we’ve been talking about it for years and went so far as to open an oil spill website in 2011.”

When the company reopened the Trans Niger pipeline shutdown in March, Weli said the company would only reopen the pipeline when the facility was secured from attack.

(NOPE)

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TSA Pipeline Cybersecurity Guidance Update https://stormfieldservicesllc.com/tsa-pipeline-cybersecurity-guidance-update/ Sun, 31 Jul 2022 21:11:10 +0000 https://stormfieldservicesllc.com/tsa-pipeline-cybersecurity-guidance-update/

Following significant collaboration with industry, the Transportation Security Administration (TSA) has issued a revised guidance, effective July 27, 2022, which updates one of the previous guidance issued following a May 2021 cyberattack on one of the nation’s largest interstate oil pipelines. . Similar to previous guidance, this latest version, Pipeline Safety Directive-2021-02C, incorporates several key changes that provide more flexibility to operators of critical pipelines and LNG infrastructure that are subject to the guidance. This includes employing a performance-based rather than prescriptive safety results model, which is more aligned with federal pipeline safety regulations and allows operators to develop plans tailored to their pipeline systems. The updated directive, along with part of the previous directive 2021-02B, is due to expire within one year, July 27, 2023, during which time the TSA intends to continue rulemaking. formal.

The TSA remains concerned that the risks to critical pipeline systems and LNG facilities continue to be elevated. As such, the TSA requires in its most recent directive that the following additional protocols be developed and incorporated into response plans:

  • Cybersecurity Implementation Plan. This plan must be submitted to the TSA for approval within 90 days of the effective date of the guidance (i.e. by October 25, 2022). The plan must provide specific measures and a proposed timetable for the implementation of network segmentation policies and controls, access control measures, access rights management policies and controls; policies that limit the availability and use of shared accounts, ongoing monitoring and detection procedures; and policies to reduce the risk of exploitation of unpatched systems.
  • Cyber ​​Security Incident Response Plan.
  • Cyber ​​Security Assessment Program (including annual submission of cybersecurity effectiveness and vulnerability assessment plans).

In particular, until a cybersecurity implementation plan is approved by the TSA, owners/operators of critical pipelines and LNG facilities are required to continue to implement the Pipeline Security Directive- 2021-02B of July 2021, attached to the new security directive Pipeline-2021-02C, as well as any action plan or alternative measure approved by the TSA. In part, these new requirements reflect feedback from the pipeline and LNG industry on previous guidance, particularly with respect to providing greater flexibility for safety practices involving operational technology systems ( OT) as opposed to the previous focus on information technology (IT) systems. In addition, Safety Directive Pipeline-2021-01B update (which on May 29, 2022 superseded Safety Directive Pipeline-2021-01A May 2021) revised reporting requirements to impose the declaration within 24 hours (instead of 12 hours) .

The TSA’s requirements for owners and operators of critical pipelines and LNG facilities, however, remain stringent. In a press release on the latest directive, TSA Administrator David Pekoske said, “We recognize that every business is different, and we’ve developed an approach that recognizes that fact, backed by monitoring and ongoing auditing to assess achievement of necessary cybersecurity outcomes. “It remains to be seen whether the performance-based approach actually provides sufficient flexibility for owners and operators of critical pipelines and LNGs, and a number of prescriptive requirements remain in the updated guidance.

Although the latest revision is encouraging and the wording of the guidance indicates more flexible requirements for industry, owners and operators of critical LNG pipelines and facilities should seek expert advice when developing, implementing and evaluating their incident response plans to ensure they stay on track with the ever-changing standards.

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Russia in FLAMES: Devastating explosion tears key gas pipeline in crisis for Putin | World | New https://stormfieldservicesllc.com/russia-in-flames-devastating-explosion-tears-key-gas-pipeline-in-crisis-for-putin-world-new/ Sat, 30 Jul 2022 09:03:00 +0000 https://stormfieldservicesllc.com/russia-in-flames-devastating-explosion-tears-key-gas-pipeline-in-crisis-for-putin-world-new/

The main gas pipeline caught fire Friday in the Russian region of Chelyabinsk. Footage shared on Twitter showed the pipeline exploding. A user sharing the video said: “The Bukhara-Ural gas pipeline burst in Chelyabinsk region, Russia.

“According to Russian media, the incident occurred due to the depressurization of the underground gas pipeline. At the same time, the gas supply is proceeding according to plan.

According to the Russian Emergencies Ministry, there was a report of depressurization of an underground high-pressure gas pipeline with a diameter of 1,000 millimeters which led to subsequent flaring, with flames believed to have reached 10 meters in height. .

The fire was extinguished and continued to threaten the local village.

The Russian ministry said gas supplies to consumers would not be affected by the incident.

The blast came just hours after Vladimir Putin warned that Europeans “would have to move before winter” under threat of cutting off the continent’s energy supply.

Russian gas producer Gazprom said on Saturday it had stopped gas supplies to neighboring Latvia, accusing it of violating gas withdrawal conditions.

Russia has already cut off gas supplies to Poland, Bulgaria, Finland, the Netherlands and Denmark, which have refused to pay for gas in accordance with an order from President Vladimir Putin requiring the creation of accounts in rubles in a Russian bank as part of a new settlement plan. .

Russia has also halted gas sales to Shell Energy Europe in Germany.

READ MORE: Putin humiliated as intercepted call shows Ukrainian air power

In March, Putin said the world’s largest natural gas producer would require countries designated as “hostile” in their stance on the Ukraine conflict to pay for piped gas in rubles.

The European Commission – which has warned that complying with Putin’s order could breach European Union sanctions against Moscow – has urged European companies to continue paying in the currency agreed in their contracts with Gazprom, whose big majority is in euros or dollars.

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From now on, Russia will control all Qatari and Iranian gas pipelines https://stormfieldservicesllc.com/from-now-on-russia-will-control-all-qatari-and-iranian-gas-pipelines/ Thu, 28 Jul 2022 09:30:33 +0000 https://stormfieldservicesllc.com/from-now-on-russia-will-control-all-qatari-and-iranian-gas-pipelines/

The West believed that its strategy of circumventing Russian dependence would be successful. But because it’s a never-ending rat race, the addiction factor has returned with a whole new face. And that could be another setback for the allies.

More than a turf war, the war in Ukraine has become a war over oil. As European nations decided to abandon Russian energy supplies, fuel prices soared and there was a huge shortage of energy supplies in countries like Germany and Italy.

If anyone has sufficient assets to fill the void left by Western sanctions, it is none other than the Gulf States. The European Union is actively engaging with Gulf countries such as Iran and Qatar to meet their energy needs.

Just days ago, Qatar insisted that EU members sign long-term contracts for LNG supplies at the request of the United States, while the EU tried deceptive techniques to appease Iran. But Russia is in no mood to allow this, it is back with a plan that will help it control all Qatari and Iranian gas pipelines.

Russia signs new agreement

Iran and Russia have joined efforts to increase cooperation in the energy sector. According to the media, just before the start of Putin’s visit to Iran, Gazprom signed a 40 billion US dollar memorandum of understanding with the National Iranian Oil Company (NIOC) on a vast program of increased cooperation between Russia and Iran.

Gazprom’s focus on boosting Iranian LNG capabilities comes precisely at a time when EU countries want to dramatically increase LNG imports to shore up their energy supplies. And we all know how Gazprom’s help can impact European supply lines. Gazprom has pledged its full assistance to NIOC in the $10 billion development of the Kish and North Pars gas fields which aims to produce at least 10 million cubic meters of gas per day.

Source – The Conversation

Whereas there is also a deal worth US$15 billion to increase pressure on the supergiant South Pars gas field on the Iran-Qatar maritime border between Gazprom and Iran. In addition, according to local media, Gazprom will be fully active in the completion of various liquefied natural gas (LNG) projects and the construction of gas export pipelines.

It may seem like a casual affair, but it’s not. This deal is enough to keep Russia as the mastermind behind energy supply to Iran and Qatar when looking at the bigger geopolitical spectacle.

Read more: Iran, China, Venezuela and Russia team up to send naval armada to US borders

Snubbing Qatar and the West

Qatar wanted to play the role of a messiah by bailing out the EU via the South Pars gas field. But, by this agreement with Iran, the Kremlin has quite simply screwed up its ambitions.

South Pars Gas Field |  NrgEdge
Source – NrgEdge

Russia has moved into a position to sabotage Qatar’s LNG exports to Europe via the massive South Pars gas field. The South Pars field, which covers an area of ​​3,700 square kilometers and contains at least 1,800 trillion cubic feet of gas and at least 50 billion barrels of natural gas condensate, is the largest gas reservoir in the world.

There are countless examples in recent times where Russia has sabotaged energy supplies destined for Europe in an effort to fully penetrate the continent. Moreover, Iran is pretty sure that it will not allow Brussels to have even a single drop of its oil.

After Russia, Iran has the second largest gas reserves in the world, and if the West wants Iranian gas, it must renegotiate Iran’s demands as Iran seeks to reenter global diplomacy by resurrecting a version of the Joint Global Plan of Action, colloquially known as the JCPOA.

Read more: Iran, Russia propose freight corridor that will make them sanctions-proof

Russia now holds another pipeline in its hand. While Qatar’s ambitions fell flat. Now this new arithmetic will surely create new roadblocks for the West and its allies.

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Latest news from Russia and the war in Ukraine https://stormfieldservicesllc.com/latest-news-from-russia-and-the-war-in-ukraine/ Tue, 26 Jul 2022 07:33:00 +0000 https://stormfieldservicesllc.com/latest-news-from-russia-and-the-war-in-ukraine/

Ukraine’s economy has suffered a sharp decline due to war with Russia, senior official says

A view of the damage after the market square was hit by Russian attacks as the Russian-Ukrainian war continues in Bakhmut, Donetsk Oblast, Ukraine, July 25, 2022.

Metin Atkas | Anadolu Agency | Getty Images

Russia’s attack on Ukraine has had a huge impact on the country’s economy, according to a senior official of Ukrainian President Volodymyr Zelenskyy.

“Currently, we expect the Ukrainian economy to show a drop of around 35% to 40%, which is a huge drop,” Zelenskyy’s economic adviser Oleg Ustenko told CNBC’s “Capital Connection.” .

“But why this decline has happened [is] because I would say 50%, half of our businesses are either not operational right now or are not able to operate at full capacity.”

“When the economy declines, budget revenues decline. Again, the reason is the Russian invasion,” he added.

— Sumathi Bala

Germany fears ‘serious’ situation as Russian gas flows set to decline again

German Economy Minister Robert Habeck said gas supplies to industry will be cut before private residences or critical infrastructure such as hospitals experience gas shortages.

Image Alliance | Image Alliance | Getty Images

German Economy Minister Robert Habeck has warned that the country faces a serious energy situation as Russia prepares to cut gas flows to Europe.

“We have a serious situation. It’s time for everyone to understand this,” Habeck told broadcaster ARD on Monday evening, adding that Germany needed to reduce its gas consumption. “We’re working on it,” Habeck said.

Habeck said gas supplies for industry will be cut before private residences or critical infrastructure such as hospitals experience gas shortages.

“Of course, it is a big concern, which I also share, that this could happen. Then some production lines in Germany or Europe would simply no longer be manufactured. We must avoid this with all our might.” The way is to reduce gas consumption by 15-20% in Germany, he said.

“If we can do that, then with all the steps we’ve taken, we have a very good chance of not having to take that step.”

Just days after gas flows resumed through its Nord Stream 1 gas pipeline last Thursday after a 10-day hiatus for routine maintenance, Russian gas giant Gazprom said on Monday it would again cut daily gas deliveries via the pipeline to 33 million cubic meters from Wednesday.

This means that gas flow, already at only 40% capacity, will further halve from tomorrow.

Gazprom said it was for the purpose of repairing a turbine, but that claim was criticized by Western officials. Germany’s Habeck said the reasoning was a ‘farce’, while Ukrainian President Zelenskyy said Putin was continuing his ‘gas war’ against Europe, a continent that has traditionally depended on Russia for around 45% of its annual gas supplies.

—Holly Ellyatt

‘No indication’ Russian missiles hit Ukrainian warship and munitions in Odessa, UK says

The British Ministry of Defense said that, contrary to Russian claims, there was no evidence that a missile attack on the port of Odessa last weekend actually hit a Ukrainian warship and a stockpile of anti-ship missiles.

“On July 24, 2022, Russian cruise missiles hit the dock of the Ukrainian port of Odessa. The Russian Defense Ministry claimed to have hit a Ukrainian warship and a stockpile of anti-ship missiles. There is no indication that such targets were located where the missiles hit,” the ministry said.

The comments come after Russia claimed it used high-precision Kalibr missiles to destroy a ship repair factory in Odessa, destroying a dockside warship and a depot of US-supplied Harpoon missiles . The strike has crippled the plant’s production capacity for repairing and modernizing Ukrainian navy ships, a Russian general said. Ukrainian President Volodymyr Zelenskyy called the attack an act of “barbarism”.

The port of Odessa on July 20, 2022.

Bulent Kilic | AFP | Getty Images

In its latest intelligence update, the UK noted that “Russia almost certainly perceives anti-ship missiles as a key threat that limits the effectiveness of its Black Sea Fleet”.

“This has significantly undermined the overall invasion plan, as Russia cannot realistically attempt an amphibious assault to seize Odessa. Russia will continue to prioritize efforts to degrade and destroy capability Ukraine’s anti-ship approach. However, Russia’s targeting processes are most likely regularly undermined by intelligence, poor planning and a top-down approach to operations,” he added.

—Holly Ellyatt

Kharkiv bombarded during the night; Towns and villages in Donetsk are under continuous fire

Ukraine’s second-largest city, Kharkiv, came under fire overnight, with more shelling on the city, Kharkiv Mayor Ihor Terekhov said on Telegram.

“Again, the night bombardment of the city. One of the districts of Kharkiv, closer to the city center, was hit. Traditionally, it was next to a building that had nothing to do with military infrastructure,” Terekhov said, adding that he was still unsure if there were any casualties after the strikes.

Firefighters carry out search and rescue operations after Russian forces hit a cultural center in Chuhuiv, Kharkiv oblast, Ukraine, July 25, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

In its latest military update on Tuesday, the Ukrainian Armed Forces General Staff said that Kharkiv and its surroundings had been attacked by tanks, guns and rockets as Russian forces continued their assault on the Donetsk region. , in the Donbass, with Kramatorsk, Sloviansk and Bakhmut. and surrounding settlements under fire.

A damaged market in Bakhmut, Donetsk Oblast, on July 25, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

Nearby, Russia was also “focusing its main efforts on trying to improve the tactical position and create conditions for an offensive on the towns of Siversk and Soledar. Enemy units are replenishing stocks of ammunition, fuel and oil,” a spokesman for the Ukrainian General Staff said. on Facebook.

—Holly Ellyatt

At least 100 nuclear plant employees kidnapped by Russian troops, energy company chairman says

A Russian serviceman patrols the territory of the Zaporizhzhia nuclear power plant in Energodar on May 1, 2022. The Zaporizhzhia nuclear power plant, seized by Russian forces in March, is in southeastern Ukraine and is the largest nuclear power plant in Europe and among the 10 largest in the world. This photo was taken during a media trip organized by the Russian military.

Andrei Borodulin | AFP | Getty Images

The president of a Ukrainian nuclear power plant company said Russian forces abducted around 100 of its employees.

“There are about 500 Russian soldiers on the territory of the power plant. They are the ones who let employees into their workplaces and control everything that happens on the territory of the Zaporizhzhya nuclear power plant,” Petro Kotin said. of Energoatom, according to a translation by NBC News.

Kotin added that the Russian troops took identification badges and entered a secure area inside the nuclear power plant. He said “what they did there is not known”.

He said they may not have followed the proper security checks and “it’s entirely possible that they received radioactive contamination on their clothes outside the screening area”.

—Amanda Macias

Putin is waging a ‘gas war’ against Europe, says Zelenskyy

Russian President Vladimir Putin attends a meeting with participants of the national Bolshaya Peremena competition for schoolchildren, via video link in Moscow, Russia, July 20, 2022.

Pavel Byrkin | sputnik | Reuters

Ukrainian President Volodymyr Zelenskyy has said Russian President Vladimir Putin is waging a “gas war” against Europe.

“Russia is not going to take over the gas supply to European countries, as it is contractually bound to do. And this is an open gas war, which Russia is waging against a united Europe,” Zelenskyy said during the talk. a late-night talk on the Telegram messaging app. .

“They don’t care what will happen to people, how hungry they will be due to blocked ports or winter cold and poverty,” Zelenskyy said, adding that Russia was indulging in ” different forms of terror”.

He also called on world leaders to sever trade ties with Russia “as much as possible” in order to put pressure on Moscow.

—Amanda Macias

Russia’s Gazprom further cuts gas flow from Nord Stream 1 pipeline, citing repairs

Nord Stream 1’s supplier said gas flows had resumed after maintenance work.

Hannibal Hanschke | Reuters

Russia’s Gazprom said it would further reduce natural gas flows through a major pipeline to Europe to 20% of capacity, citing equipment repairs.

The Russian state-owned company tweeted that it would reduce “the daily throughput” of the Nord Stream 1 gas pipeline to Germany to 33 million cubic meters from Wednesday. The head of the German network regulator confirmed the reduction.

The move comes after Gazprom raised questions about the return of a party that has been at the center of tensions over natural gas deliveries through the pipeline, saying it is unhappy with the documents it has received .

The company cut gas flow through the Nord Stream 1 pipeline by 60% in mid-June, citing alleged technical problems with equipment that partner Siemens Energy sent to Canada for overhaul and which could not be fired due to sanctions related to Russia’s invasion of Ukraine. .

Germany has dismissed Gazprom’s technical explanation for the gas cut, repeatedly saying it was just a pretext for the Kremlin’s political decision to sow uncertainty and further drive up prices. energy price.

— Associated Press

Ukraine hopes to start exporting agricultural products on Tuesday, official says

Farmers harvest a wheat field near Melitopol in Ukraine under Russian assault.

Olga Maltseva | AFP | Getty Images

Despite a Russian missile strike on a Ukrainian port over the weekend, Ukraine will start exporting grain and other foodstuffs on Tuesday, the country’s deputy infrastructure minister said.

“From the very next day, we will be ready to work on restoring the export of agricultural products through our ports,” Yuriy Vaskov told reporters on Monday, according to a translation by NBC News.

Vaskov said Chornomorsk will be the first port to reopen, followed by Odessa and Pivdennyi. Vaskov added that in the next two weeks all ports will export agricultural products consistently.

—Amanda Macias

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DC circuit allows pipeline certificate to be maintained, accepting pre-export agreements as proof of necessity | Troutman pepper https://stormfieldservicesllc.com/dc-circuit-allows-pipeline-certificate-to-be-maintained-accepting-pre-export-agreements-as-proof-of-necessity-troutman-pepper/ Fri, 22 Jul 2022 17:11:40 +0000 https://stormfieldservicesllc.com/dc-circuit-allows-pipeline-certificate-to-be-maintained-accepting-pre-export-agreements-as-proof-of-necessity-troutman-pepper/

On July 8, 2022, the United States Court of Appeals for the District of Columbia Circuit (“DC Circuit”) issued its decision in City of Oberlin, Ohio c. FERC, a proceeding dealing with whether FERC properly granted NEXUS Gas Transmission, LLC (“Nexus”) a certificate of public convenience and necessity to construct and operate a natural gas pipeline that will facilitate exports to Canadian markets ( “Project”). The Court upheld the certificate.

In November 2015, Nexus filed an application for the construction of a new pipeline that will provide up to 1.5 Bcf/day of firm transportation service from supply areas in the Appalachian Basin to consumer markets in Ohio and Michigan, and to the Dawn Hub, where the gas is piped. traded across the Canada-US border. As part of its application, Nexus entered into eight pre-arranged agreements (long-term contracts with shippers) representing approximately 60% of the total pipeline capacity, including two with Canadian companies that will serve customers in Canada. After FERC granted the certificate to Nexus, the City of Oberlin (“Oberlin”) requested a DC Circuit review, challenging FERC’s reliance on previous export agreements as evidence of “need” for the pipeline as unjustified and unlawful under Section 7 of the Natural Gas Act (“NGA”). The Court agreed and sent the proceedings back to FERC. On Remand (“Reminder Order”), FERC confirmed the issuance of its certificate and provided additional explanations as to why its credit from previous export agreements was legal.

The DC Circuit’s July 8 decision rules on Oberlin’s second motion for review, which challenged FERC’s remand order. First, Oberlin argued that the removal order was contrary to law because gas for export is not traded interstate and therefore FERC could not consider exports when assessment of a certificate under Section 7. Oberlin argued that FERC should have analyzed the project as an export facility under Section 3 of the NGA if it had wanted to rely on export agreements to reach its decision. Oberlin also claimed that FERC’s decision was arbitrary and capricious.

The Court disagreed. With respect to Oberlin’s first claim, the Court found that FERC had properly analyzed the project under Section 7. The Court found that where “gas for export is blended with intended for domestic use, between States”, this mixed gas intended for export “became interstate gas itself. Thus, the Court determined that the previous export agreements were part of interstate commerce. Because section 7 allows FERC to consider all factors that may affect the public interest, the Court found that FERC’s review of export agreements was appropriate.

The Court also held that FERC reasonably justified its review of the export agreements because FERC: (1) relied on a congressional ruling that exports to free-trade countries like Canada are beneficial to the public and are therefore in themselves in the public interest under section 3; (2) describes a series of national benefits resulting from increased gas transportation, regardless of where the gas will ultimately be consumed; (3) explained that these particular previous export agreements demonstrated a need for additional transport capacity to the Dawn hub, which served national interests; and (4) explained that export agreements did not violate the levies clause because they “served a public use”.

Finally, the Court upheld FERC’s alternative explanation that the Project meets the requirements of Section 7, namely that the Project will relieve a capacity bottleneck by facilitating shipments from the Appalachian Basin to markets. of the Midwest.

A copy of the DC circuit decision can be found here.

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Europe prepares for restart of Russian Nord Stream gas link https://stormfieldservicesllc.com/europe-prepares-for-restart-of-russian-nord-stream-gas-link/ Wed, 20 Jul 2022 23:14:00 +0000 https://stormfieldservicesllc.com/europe-prepares-for-restart-of-russian-nord-stream-gas-link/
  • Annual maintenance is due to end at 06:00 CET on July 21
  • Different signals on the recovery
  • The extension could disrupt the filling of the gas storage

LONDON, July 21 (Reuters) – Europe is worried about the restart of the Nord Stream 1 gas pipeline from Russia after the end of annual maintenance scheduled for Thursday, as governments brace for possible further supply cuts.

A planned outage on the largest pipeline carrying Russian gas to Germany began on July 11 and is expected to end at 06:00 CET (04:00 GMT) on July 21. It transports 55 billion cubic meters (bcm) per year of gas under the Baltic Sea. .

If the shutdown is extended, operator Nord Stream AG should make this clear on its website, where the streams section would indicate either a resumption or zero gas.

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Nord Stream 1 for the past two years has resumed gas deliveries on time after maintenance which takes place every summer.

Last July, the delay in servicing a turbine in Canada and Gazprom’s declaration of force majeure to European customers, meaning it cannot guarantee delivery due to exceptional circumstances, raised fears of an outage. prolonged. Read more

Two sources close to Gazprom’s plans told Reuters on Tuesday that flows were likely to restart at pre-maintenance levels of 40% of the pipeline’s capacity. Read more

The head of Germany’s energy regulator said on Wednesday he expected the pipeline to resume at around 30% capacity based on nominations or requests for gas in Lubmin, where Nord Stream 1 makes landfall in Germany. Read more

There is still time for these nominations to change before the scheduled end of maintenance.

While better than no recovery, gas flows at reduced capacity would still disrupt European storage plans and worsen a gas crisis that has prompted emergency measures from governments and painfully high consumer bills.

TURBINE FLASH POINT

While the West accuses Moscow of using its energy resources as a weapon, some European governments, such as Germany, have said any turbine delays could provide Russia with a pretext to extend maintenance.

Canada said it has issued a permit for the turbine’s return, but it’s unclear when it will reach the Nord Stream pipeline.

Russian President Vladimir Putin also said it was unclear what condition the turbine would return to after repairs in Canada, adding to uncertainty over the restart of the pipeline. Read more

Russia insists it is a reliable supplier and rejects Western accusations that it is using the energy to blackmail Europe. He also accuses the West in supporting Ukraine of waging an economic war against Moscow.

Russian gas giant Gazprom (GAZP.MM) said the turbine was necessary for the safety of Nord Stream 1 and said it had not received documentation from Siemens Energy (ENR1n.DE), which serviced the turbine, that he had to reinstall it. Read more

Gazprom did not comment on its declaration of force majeure, dated retroactively to June 14 when Russia cut gas flows to 40% of capacity, citing the missing turbine. Read more

The traders, speaking on condition of anonymity, viewed the statement as an attempt to shield Gazprom from legal action for breach of contract.

Along with analysts and governments, they also braced for months of tension and possibly variable gas flows.

“With European leaders determined to tighten sanctions against the Kremlin, the likelihood has increased that the Russian government will announce the next step of further reducing gas flows to Europe in response,” said Hans van Cleef, Senior Energy Economist at ABN. Amro, said.

Other analysts also expect flows to be further reduced in the coming months, but note that Russia needs revenue as much as Europe needs gas.

“We believe the most likely scenario is for Nord Stream flows to restart and return to full capacity when Gazprom receives the gas turbine from Siemens, but risks remain of further reductions in the following weeks or months,” they said. analysts at investment bank Jefferies in a note. .

“We believe that Russia’s objective is to prevent Europe from building up gas stocks before winter, to keep gas prices high, to maximize economic damage and to keep the effect leverage. The latter is not achieved if volumes are reduced to zero,” they added.

According to the Finnish research organization Center for Research and Clean Air, Russia earned 24 billion euros ($24.6 billion) from pipeline revenue during the first 100 days of the war in Ukraine (24 February -June 3).

For Europe too, the economic stakes are high.

Around 32% of gas consumption in Europe comes from Russia, 90% of which via pipelines. Russia is also heavily dependent on the European market, with 82% of its pipeline exports to the continent, Barclays analysts said.

The European Commission has said that a complete cut in Russian gas supplies to Europe, if combined with a cold winter, could reduce the EU’s average gross domestic product by up to 1.5% if countries do not prepare in advance.

European Commission President Ursula von der Leyen said on Wednesday that a complete shutdown was “a likely scenario”, with the EU executive proposing a voluntary target for member states to cut gas consumption by 15% by up to 15%. ‘in March.

($1 = 0.9754 euros)

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Reporting by Nina Chestney; additional reporting by Kate Abnett in Brussels, Marwa Rashad in London and Christoph Steitz in Frankfurt and Reuters offices; Editing by Veronica Brown and Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

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Natural gas stocks beat oil names. Here’s why. https://stormfieldservicesllc.com/natural-gas-stocks-beat-oil-names-heres-why/ Mon, 18 Jul 2022 17:51:00 +0000 https://stormfieldservicesllc.com/natural-gas-stocks-beat-oil-names-heres-why/

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