PGNiG, Eru win first urgent Moldovan gas tender

Market: Natural gas
26/10/21

Poland's state-owned PGNiG and Ukrainian private-sector firm Eru won the first tender to supply gas to Moldovan state-owned Energocom.

The Moldovan government last week declared a state of emergency and gave Energocom permission to issue a tender for 5mn m³ of technical gas to supply state-owned Moldovagaz. The supply is needed to help Moldova meet its gas demand and maintain sufficient pressure in its gas pipelines, following a drop in deliveries from Russian state-owned Gazprom this month.

The gas will be delivered to an entry point at the Moldovan-Ukrainian border, with the first lot to be shipped today on prepayment terms. The price is determined by the TTF day-ahead midpoint assessed by Argus.

The first lot will be delivered to the Oleksiivka interconnection point from gas held on customs-free terms in Ukrainian storage facilities, a source at the Ukrainian system operator said.

Energocom received seven different offers, including from Ukrainian state-owned Naftogaz, and accepted the lowest-priced ones. Energocom has separately signed a contract with Naftogaz, according to which gas will be supplied at market prices to Moldova if needed. Ukrainian system operator GTSOU has additionally allocated over 15mn m³ of its operational balancing gas to the Moldovan operator, which will be delivered in the coming months until Moldova is able to meet its demand.

It is also possible to book capacity at the Moldovan-Romanian border, after Romanian system operator Transgaz and its Moldovan subsidiary Vestmoldtransgaz started auctioning capacity on the RBP booking platform earlier this month.

Moldovagaz is still negotiating with Gazprom on an extension of its long-term contract, and is considering alternative scenarios for gas purchases. Moldova cannot commit to paying a higher price for gas than other countries in the region, deputy prime minister Andrei Spinu said.

Gazprom proposed a contract that is partly linked to spot prices and incorporates a need to repay debts for earlier gas shipments, an industry source said. A Gazprom representative said that the company can completely stop gas supplies to Moldova if it does not repay its debt of $433mn, in addition to $276mn for the delay in payments until the beginning of a new contract.

By Victoria Dovgal

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05/11/24

Voting set to conclude in race for White House

Washington, 5 November (Argus) — Voting concludes today in the US presidential contest between former president Donald Trump and vice president Kamala Harris, a race with high stakes for energy policy, trade and climate change. Polls will close by 6-9pm ET in eastern states and by 11 pm ET in most western states, but election officials say it will take time to count votes, including from mail-in ballots that will trickle in over the coming days. As of 3 November, voters who went to the polling stations early or sent mail-in ballots added up to 48pc of the total turnout in 2020, according to analysis by the Washington Post. The presidential race is likely to be determined by voters in Michigan, Wisconsin, Pennsylvania, North Carolina, Georgia, Arizona and Nevada, where pre-election polls have shown no decisive lead for Harris or Trump. Voters are casting ballots at a time when domestic oil and gas production is booming. US crude output reached a record high 13mn b/d last year, while gas production hit a record 103 Bcf/d, according to the US Energy Information Administration. Despite record production and profits in the oil industry, Trump has focused heavily on energy policy — and voter anger over higher prices across the economy — in his bid to win a second term. US drivers paid an average of $3.07/USG for regular grade gasoline in the week ended on 4 November, the lowest price in 10 months — but still higher than at any point during Trump's first presidency. On the campaign trail, Trump has assured oil and gas producers that under his watch they would be permitted to "drill, baby, drill" and has promised to dismantle the energy tax credits in President Joe Biden's signature climate initiative, the Inflation Reduction Act. Harris has committed to support the 2022 law and other energy policies adopted by Biden, including continued support for electric vehicles. Harris has disavowed her 2019 pledge to ban hydraulic fracturing. But oil and gas firms remain concerned about restrictions on federal leasing and efforts to electrify the vehicle fleet if she is elected. The next president will decide key questions on energy policy, such as how to proceed with a "pause" on the licensing of new US LNG export facilities and to manage climate-related rules for power plants, oil and gas facilities and vehicles. The race for the White House will have equally high stakes for companies involved in metals and agriculture , as well as other commodities. Trump is planning a combative approach to trade, with a 20pc tariff on all foreign imports and even higher tariffs against China, and to rescind many regulations. In 2025, the US Congress is poised for a major fight on tax policy because of the year-end expiration of an estimated $4 trillion in tax cuts. Russia's war on Ukraine, and the future of US restrictions on Russian energy exports is also at stake during the election. Trump has vowed to end the war by forcing Kyiv to negotiate a deal with Russian president Vladimir Putin and appears to back the Kremlin's argument that the continuation of US sanctions on Russia would weaken and undermine the dollar. A Harris administration would continue enforcing the G7 price cap on Russian oil exports and, possibly, add to the restrictions on Moscow's earnings from its oil and gas exports. The growing threat of an Israel-Iran war and its potential impacts on oil flows from the Middle East is threatening to overwhelm the final months of Biden's term in office and any foreign policy initiatives either candidate vying to succeed him will pursue in the region. US-China relations are likely to remain adversarial in coming years. Viewing Beijing as the principal economic and geopolitical challenge for the US is a rare overlap in foreign policy priorities identified by Trump and Harris. Of particular concern in Washington is the ability of oil exporting countries such as Iran, Venezuela and Russia to find willing buyers for their crude in China despite US sanctions. Polls also show a tight race in the fight for control of the US House of Representatives, where Republicans hold a slim 220-212 majority. Up to 22 congressional races are up to grabs, with a range of potential outcomes favoring either party, election ratings firm Cook Political Report says. Cook rates 208 seats as solid or leaning Republican, and 205 solid or leaning Democratic, with both shy of the 218 needed for control of the chamber. In the US Senate, where Democrats hold a 51-49 majority, Republicans have a clear path to taking control because of polling leads in West Virginia and Montana. Republicans could win control of the Senate by flipping just one seat, if Trump wins the election, but would need to flip two seats if Harris wins. By Chris Knight and Haik Gugarats Presidential race still a toss-up Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Oil services upturn takes a pause for breath

04/11/24

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04/11/24

Oil services upturn takes a pause for breath

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Mexican hydrogen regulatory efforts gain ground

01/11/24

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01/11/24

Mexican hydrogen regulatory efforts gain ground

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US job growth slumps in October, jobless rate at 4.1pc

01/11/24

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01/11/24

US job growth slumps in October, jobless rate at 4.1pc

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US court set to weigh biofuel blend mandates

31/10/24

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31/10/24

US court set to weigh biofuel blend mandates

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The Center for Biological Diversity and the National Wildlife Federation argue that EPA has legal discretion to set post-2022 volumes for corn- and soybean-derived biofuels as low as zero. EPA counters that the court owes the agency deference in evaluating scientific data and making predictive judgments. And biofuel groups that have intervened argue that the program is designed to require more biofuel production even if there are no formal volume requirements in law anymore. While EPA's post-2022 authority to set blend mandates is a new issue, the DC Circuit has handled various cases about EPA's implementation and has generally been deferential to the agency's volume decisions. The court this year upheld 2020-2022 targets. In a 2019 decision, the court kept volumes in place , despite telling EPA to more deeply weigh endangered species impacts. 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RINcrease or decrease RIN market activity has thinned as participants await the results of the court case and November's presidential election. In its latest rule, EPA aimed to provide a clearer picture over a longer timeline by finalizing volumes over multiple years. But the agency underestimated the growth in renewable diesel production, partly because of unexpectedly high feedstock imports. The result has been persistent oversupply, which took D4 biomass-based diesel credit prices from around 150¢/RIN in spring last year to as low as 42¢/RIN a year later according to Argus assessments. Multiple refiners have consequently dialed back biofuel production. In the past, RIN prices have proven sensitive to legal developments as traders anticipate supply and demand shifts. Prices softened this summer after the DC Circuit vacated small refinery waivers, leaving it unclear whether many facilities would have to buy RIN credits at all. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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