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Construction on remaining Nord Stream 2 string to start

  • Spanish Market: Natural gas
  • 05/03/21

Construction on the first parallel string of Russian state-controlled Gazprom's 55bn m³/yr Nord Stream 2 pipeline will resume shortly, after a pause of nearly 15 months, following the restart of works on the other line earlier this year.

The Russian-flagged Akademik Cherskiy will undergo sea trials before laying pipes in Denmark's exclusive economic zone (EEZ), the project developer said. Denmark's government permit body DEA told Argus today that work on the string will start this month.

A Danish maritime authority notice confirms pipe-laying up to September in locations near Borholm Island up to the German border. Two pipe-laying vessels, Akademik Cherskiy and fellow Russian-flagged Fortuna, two construction vessels and other supply vessels will operate in the area.

About 110km of pipe-laying remains in Danish waters and about 28km in German waters, Nord Stream 2 said today. The project operator had earlier detailed that 16.5km of one string and 13.9km of the remaining string required laying in Germany. Vessel tracking software suggests the Fortuna laid about 12km on the route's other string in the last 30 days, equal to about 400m/d.

Nord Stream 2 said before the Fortuna re-starting pipe-laying that around 120km of the Danish route remained.

Both vessels operating in Danish and German waters from May could allow construction to be completed this summer. The Fortuna requires use of anchors when laying pipes, slowing progress compared with pipe-laying vessels with dynamic positioning systems, which may include Akademik Cherskiy.

Appeals against amendments to Nord Stream 2's German permit seek to block the use of anchored vessels in German waters in October-May. But this would not prevent works outside this period. "Everything depends on the [sea] trials," Nord Stream 2 told Argus.

After pipe-laying, the project requires the above-water tie-ins of unconnected pipe sections, as well as design verification of the completed pipeline.

Sanctions fail to halt construction?

Nord Stream 2's continuing construction has bucked US sanctions on Fortuna, suggesting that sanctions may not be able to halt the line's physical construction. But the line could still face difficulties before start-up.

US sanctions had pushed a number of insurers out of the project.

And a number of contractors, including independent certification body DNV GL, wound down verification activities required by permits for the project. Nord Stream 2 had contracted the Norwegian firm to "verify the safety and technical integrity" of the project and to issue a certificate of compliance upon its "satisfactory completion", DNV GL said.

Certification by a third party is required under DEA's permit before pipeline commissioning. This must assure that the pipeline was designed, fabricated, installed and commissioned in accordance with "applicable technical, quality and safety requirements". DEA would then issue a "certificate of conformity", a further permit requirement, before operations could start.

The restart of pipe-laying on both strings suggests that Nord Stream 2 has secured alternative verification and certification services consistent with DEA requirements, given on-board observation of pipe-laying has typically formed part of project operations to date.

The standards requiring certification were developed by DNV GL and held as proprietary by the firm, but other firms can complete certification according to those standards. Scheduled maintenance and inspections are also to be carried out through the project's operational lifetime in accordance with DNV GL's requirements.

The US State Department this week said that further sanctions may be imposed on Russia later this month associated with the poisoning of Russian opposition figure Alexei Navalny. But penalties under the relevant legislation will not affect the project, unlike those under other laws that directly mention the pipeline.


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01/05/25

Ukraine, US sign reconstruction deal

Ukraine, US sign reconstruction deal

London, 1 May (Argus) — The government of Ukraine has agreed a "reconstruction" deal with the US that will establish a fund to be filled with proceeds from new mineral extraction licenses. There are few firm details about how much money will be involved, or how any future extraction contracts will be structured. It appears to be the same agreement that came close to being signed in February , which collapsed after an awkward meeting in the White House between Ukrainian president Volodymyr Zelenskiy and his US counterpart Donald Trump. Washington had pitched the deal in advance as providing stakes in Ukraine's mineral rights, as a form of repayment for past US support and a deterrence against future military incursions by Russia. There is no firm indication from either side that this is the case. Ukraine's economy minister Yulia Svyrydenko said today that 50pc of state budget revenues from new licences will flow into the fund, and the fund would then invest in projects in Ukraine itself. US treasury secretary Scott Bessent said the deal "allows the US to invest alongside Ukraine, to unlock Ukraine's growth assets, mobilise American talent, capital and governance standards", suggesting US companies will be involved in the new licenses. He said the fund will be established with the assistance of the US International Development Finance Corporation. Ukraine was eager to show the deal as a success. Svyrydenko said Kyiv will retain ownership of all resources, and "will decide where and what to extract." Neither does the agreement allow for privatisation of state-owned oil and gas company Ukrnafta or power company Energoatom, nor does it mention any debt obligation to the US, she said. The depth of Ukraine's resources are unclear. The country's geological survey shows deposits of 24 of the EU's list of critical minerals, including titanium, zirconium, graphite, and manganese, along with proven reserves of metals such as lithium, beryllium, rare earth elements and nickel. The IEA estimates Ukraine's oil reserves at more than 6.2bn bl and its gas reserves at 5.4 trillion m³, although it said Russia's annexation of Crimea means Kyiv no longer has access to "significant offshore gas resources". By Ben Winkley, John Gawthrop and James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's energy transition spending drops in 2024


30/04/25
30/04/25

Brazil's energy transition spending drops in 2024

Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Despite hosting the UN Cop 30 summit in November, Brazil has constantly neglected to address the phase-out of fossil fuels, drawing the ire of climate activists . By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Germany approves decree to lower gas storage target


30/04/25
30/04/25

Germany approves decree to lower gas storage target

London, 30 April (Argus) — The German government has passed a decree to reduce the national start-of-November target to 70pc from the existing 90pc, the economy and climate ministry BMWK said today. The Gas Storage Level decree was submitted to the federal cabinet as a ministerial decree and does not need parliamentary approval. It will come into force "upon promulgation". The decree sets out a 70pc gas storage fill level for the country as a whole, but imposes an 80pc fill level requirement for cavern storage and a 45pc target for porous storage sites, with the exception of four facilities in southern Germany which will abide to the 80pc obligation in order to maintain "supply security in Austria and Switzerland". BMWK presented the decree alongside the ongoing EU legislative process to allow more flexibility in bloc-wide storage regulation. It was developed in "close consultation with the EU institutions", BMWK said. But the EU's final legal text still needs to be agreed between the parliament and member states . Mixed response from industry associations Most German gas associations welcomed the reduction of fill level requirements. German gas grid operators association FNB backed the introduction of the decree as it supports security of supply while "gradually transferring responsibility back to the market". The timeframe and regional differentiation will enable preparation for the coming winter, FNB said. Energy association BDEW welcomed the bill, but said that it is also essential that the relevant EU framework be "established in a timely manner". The association also said it would be sensible to consider the flexibility proposed at the EU level, in which countries can meet the start-of-winter target at any date between 1 October and 1 December. Energy Traders Germany welcomed the reduction, it told Argus . But it added that the new changes should not reduce the discussion about which instruments can reliably ensure security of supply in the EU and German gas markets. And "constant changes to requirements that lead to market distortions must be avoided", it said. By Alejandro Moreano Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Sojitz to enter biomethane production in India


30/04/25
30/04/25

Japan’s Sojitz to enter biomethane production in India

Tokyo, 30 April (Argus) — Japanese trader Sojitz has decided to fund Indian biomethane producer IOC GPS Renewables (IGRPL), in efforts to enter biomethane production and sales in India. IGRPL's biomethane project requires over $400mn, Sojitz announced on 30 April, but Sojitz declined to disclose the funding amount. IGRPL is a company jointly launched by Indian biomethane plant constructor GPS Renewables and India's state-controlled refiner Indian Oil. Sojitz will conduct the funding in line with these two companies by the end of May, Sojitz told Argus . IGRPL plans to begin operating 30 biomethane plants in India during the 2026-27 fiscal year to 2027-28, targeting 160,000 t/yr of biomethane production. The company first produces biogas, a mixture of methane and CO2, by processing agricultural wastes using bacteria. It then purifies the biogas to be used as biomethane. IGRPL's biomethane plants will mainly use paddy straws as feedstock, which are usually burned in the country after harvesting rice. The produced biomethane is expected to be supplied to domestic gas firms, and those companies will use the biomethane for blending with conventional city gas. This will help to cut greenhouse gas emissions compared with using only conventional gas derived from fossil fuels, Sojitz said. Sojitz does not plan to export this project's biomethane to Japan for now, the company explained to Argus , but will later consider expanding the biomethane business to other regions by utilising GPS Renewables' technologies. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway's Equinor sees minor fall in 1Q output, profit


30/04/25
30/04/25

Norway's Equinor sees minor fall in 1Q output, profit

London, 30 April (Argus) — Norwegian state-controlled Equinor posted a profit of $2.63bn in the first quarter — a decline of 2pc on the year — as production dropped slightly and it reported lower liquids prices. Although its profit fell compared with a "strong" first quarter of 2024, it was an increase of nearly a one third from the fourth quarter of 2024. Equinor's production was 2.12mn b/d of oil equivalent (boe/d) in the January-March period, lower on the year by 2pc. "The production decrease was similar for both gas and liquids," the company said. It cited "strong" operational performance for most of its Norwegian fields, which it said "almost offsets the negative production impact from the shut-in at Sleipner B… and planned and unplanned maintenance at Hammerfest LNG." The Sleipner B platform was shut down in October after a fire . Equinor's US production rose on the year, while its output from international assets fell over the same timeframe owing to its exits from Nigeria and Azerbaijan in 2024. Equinor reported an average liquids price of $70.6/bl in the January-March quarter, down by 7pc on the year. Its realised piped gas prices rose considerably over the same time, to $14.80/mn Btu for Europe and $4.06/mn Btu for the US — increases of 57pc and 74pc, respectively. The company's total first-quarter power generation increased by 9pc on the year, to 1.4TWh, driven by "stronger clean spark spreads in gas to power generation and onshore assets in Brazil." But the renewables share of this slid by 2pc over the same period, to 760,000GWh because of "unfavourable wind conditions." Equinor is considering its legal options with regards to its US Empire Wind project, chief executive Anders Opedal said today. The US government in April ordered work to stop on the planned 810MW wind farm, offshore New York. "We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful," Odepal said. "This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals." The company reported a marginal decline in its upstream CO2 intensity in the first quarter 6.1kg CO2/bl, compared with 6.2kg CO2/bl for full-year 2024. There was a similar drop in absolute scope 1 and 2 greenhouse gas (GHG) emissions — at 2.7mn t/CO2 equivalent (CO2e) for the first quarter, compared with 2.9mn t/CO2e a year earlier. Equinor confirmed a cash dividend of $0.37/share for the first quarter and plans to launch a second tranche of its share buyback programme of up to $1.265bn, subject to authorisation at its annual general meeting in May. The first tranche of this year's buyback programme was completed on 24 March with a total value of $1.2bn. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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