Novatek load mentioned in SSD report is increasing in Klaipeda Business

The tanker that arrived from Klaipėda to Vysock for the first time this year cubic meters of LNG was delivered on January 7.

Cargo of the same volume was delivered a second time on January 10.

The third shipment of the same volume was delivered on the morning of January 15 by the tanker Coral Fungia.

Russian gas imports to Klaipeda increased last year, when a review by the SSD and the Second Department of Operational Services (AOTD) of the Ministry of National Defense warned that LNG imports from Russia through the port of Klaipeda pose a risk to the country’s energy independence.

A statement prepared in February last year claims that the Russian company Novatek, which has started operating the Vysock natural gas liquefaction terminal together with Gazprombank, has been trying to enter the Lithuanian LNG market since early 2019..

“The company’s priority activity is the supply of LNG to the Baltic countries through the Klaipeda terminal at the lowest price on the market (the low price of LNG makes Novatek’s offers commercially attractive).

Novatek was able to offer a low price only because of the conditions created by the Russian authorities for LNG exports, which aim to gain a growing share of the LNG market. Therefore, Novatek is interested in achieving this strategic objective, increasing the volume of trade through Klaipeda to establish itself in the Baltic market for LNG in the long term ”, states the intelligence services report.

The percentage is growing

In early 2020, then-Prime Minister Saulius Skvernelis was unwilling to emphasize the gas purchased from Russia.

He claimed that the amount of LNG imported by Novatek through Klaipeda is not so great as to pose a threat to energy independence, and the emergence of this actor has helped to reduce the price of gas.

“The quantities are not large, in addition, due to the appearance of this supplier, it was possible to achieve price reductions from other suppliers. Furthermore, we would not be proud of the prices at which LNG cargo is now coming in, ”said S. Skvernelis in early 2020.

According to data from Klaipedos Nafta, which manages the gas terminal, in 2019 Novatek’s market share was 14%. total LNG imports.

In 2020, this share increased slightly, but reached 15%. Imported LNG.

According to data provided by Klaipedos Nafta, 14 TWh (terawatt-hours) of degassing capacity is reserved at the LNG terminal this calendar year (as of January 15).

However, the LNG terminal’s annual capacity allocation procedure is expected at the end of April.

Also, unscheduled loads or new customers may occur during the year, and the gas import ratio may change.

In natural gas year 2019-2020, the highest amount of natural gas degassed and supplied to Lithuania’s natural gas system so far was 23.9 TWh, when compared to the previous gas year it reached 14 TWh.

Prime Minister: No need to limit

Prime Minister Ingrida Šimonytė does not see the need for further regulation of the gas market.

“When evaluating the Lithuanian gas sector, the use of the capacity of the LNG terminal and the supply of Russian gas cargo through the LNG terminal, there is currently no need to take special measures to restrict or regulate the gas market. gas”. 15 minutes in the reply sent by I. Šimonytė.

The Head of Government highlights that the situation in the sector is being closely monitored.

“The LNG terminal is open, the gas sector operates under market conditions, companies have the opportunity to request the transportation of gas cargo during the LNG term. In addition, gas is bought on the stock market.

However, the situation in the sector is constantly monitored and potential threats are assessed. When the situation changes or possible threats arise for the Lithuanian gas market, the necessary decisions will be taken to eliminate them ”, comments I. Šimonytė.

The situation in the sector is constantly monitored and potential threats are evaluated.

The shadow of Gazprom

As noted in the 2020 SSD and AOTD report, although Novatek presents itself as a private company, one of the most transparent in Russia, its strategy and operational objectives are coordinated with representatives of the highest government of Russia.

Novatek is Russia’s largest private gas company, second only to state-owned Gazprom.

One of Novatek’s shareholders, controlling 23.49 percent. shares, Gennady Timchenko is an environmental man under Russian President Vladimir Putin, included on the US sanctions list since 2014 for supporting Russian aggression in Ukraine.

Timchenko also has other shares in Russia.

It owns 17 percent. petroleum and chemical refining company Sibur, 80 percent. Stroitransgaz construction company, as well as 80 percent. Transoil and just under 50% Shares of Stroitransneftgaz.

In 2016, Russian opponent Alexei Navaln published a study revealing the origin of Timchenko’s wealth and referring to it as Putin’s wallet.

Navaln published a study that reveals the origin of Timchenko’s wealth and mentions it as Putin’s wallet.

Timchenko is working with Gazprom on joint projects, such as the construction of LNG terminals, which are important for Russia to penetrate the international LNG market.

“After Lithuania diversified its natural gas supply, Gazprom, having lost its position in the Lithuanian market, had to adapt to new conditions: offer gas on more favorable terms, avoid price manipulations, carry out more flexible transactions and look for other ways to maintain their influence, “says VSD and AOTD. Assessment of threats to national security.

Chain of intermediaries

The report also claims that in 2019, Gazprom in Lithuania avoided exerting direct influence or taking aggressive action.

However, it strengthened its activities through loyal intermediaries: entrepreneurs with connections to Gazprom, who participated in Gazprom’s gas trading schemes through companies registered in Lithuania and abroad.

The aforementioned intermediaries receive privileges from Gazprom and thus can gain a competitive advantage, SSD’s findings announced.