European countries are planning liquefied gas facilities, to stop Russian Oil

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Frontier India News Network
Frontier India News Network
Frontier India News Network is the in-house news collection and distribution agency.

Portugal plans to double the capacity of its port of Synes to service liquefied natural Gas (LNG) tankers and redirect that Gas to smaller vessels to power European countries dependent on Russian gas supplies, informed sources told Reuters. The plan, drawn up by the Portuguese government, envisages that in the short term, more than 2 billion cubic meters of LNG will be exported through Sines annually, after which the volume will be increased to 5 billion cubic meters – equivalent to annual natural gas consumption in Portugal.

Meanwhile, Estonia and Finland have signed a cooperation memorandum to build LNG capacity. This was announced by the Estonian national media group E Er. According to the memorandum, the parties plan to rent a floating terminal with a regasification capacity of at least 30 terawatt-hours per year. The costs will be shared.

German plans to speed up LNG terminals

The German government plans to speed up the construction of liquefied natural Gas (LNG) import terminals by law, DPA reported, citing known sources. The bill to speed up LNG projects in northern Germany has been developed by the ministries of economy, environment and justice and has been submitted for departmental approval, sources from the economy ministry said. 

“One of the few opportunities for Germany to provide additional gas to the world market in the short term is to buy LNG,” said a document accompanying the planned law. This is happening when Germany is trying to find alternative energy sources to reduce its dependence on Russian imports. Plans have already been drawn up to set up LNG terminals, and efforts are now being made to speed up these projects, given the ongoing Russian bombing of Ukraine. 

The document speaks of an “emergency” and special measures. The law provides that licensing authorities may, in certain circumstances, temporarily disregard certain requirements, such as environmental impact assessments. 

Recently, German government sources said that the Ministry of Economy has signed contracts for three floating terminals. In addition, plans and negotiations are underway for the fourth. The new law would apply to floating and land-based terminals. The government plans to allocate 3 billion euros for this item over the next ten years. The document speaks of an “emergency” and special measures. The law provides that licensing authorities may, in certain circumstances, temporarily disregard certain requirements, such as environmental impact assessments. 

OMV not to pay rubles

The Austrian energy company OMV has confirmed that it will make future payments for Gas supplied by Russia, in line with EU sanctions imposed on Russia in response to the invasion of Ukraine, the DPA reported. We will comply with the sanctions and adhere to the relevant guidelines, said CEO Alfred Stern at the presentation of the company’s quarterly data in Vienna. The concern’s profit decreased in the first quarter after the blow from the business in Russia and, accordingly, the prospects for production for the whole year are reduced. Austrian oil and Gas reported a quarterly net profit of 546 million euros compared to 654 million euros a year earlier. Stern has denied reports that OM intends to open a ruble account with Gazprombank in Switzerland, which would violate the sanctions regime.”

EU will have to stop the industry for refusing Russian Gas

The Jülich Research Center in Germany cast doubt on the European Commission’s initiative to cut Russian gas supplies by two-thirds and fill at least 80% of gas storage at the same time. 

Experts have developed a model that shows that it will be necessary to stop the industry under such circumstances in the European Union for weeks, reports Der Spiegel.

According to the study, Europe needs to save about 30 billion cubic meters of Gas for implementing the plan – this corresponds to a third of Germany’s gas consumption per year. This will require weeks off Gas for all steel, chemical and cement plants across the EU until the end of July and power plants that run on Gas for almost July. In this case, Brussels will be able to fill the gas storage facilities by 63% by August 1. IN OCTOBER, the EU will also need further industrial shutdowns to fill storage to 80% by November 1.

Experts consider this forecast optimistic. It can be implemented on the condition of a significant increase in gas supplies from other sources.

The EU may abandon Russian oil by the end of the year

The content of the sixth package of anti-Russian sanctions of the European Union is now known, writes Bloomberg, citing sources.

Restrictions may affect oil supplies from Russia. The EU intends to propose a complete ban by 2022 and disconnect several Russian and Belarusian banks from SWIFT.

According to the agency, the new sanctions package may also include advisory services, cloud-based services, as well as the acquisition of real estate.

Discussion of new measures against Moscow should take place next week.


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