ST PETERSBURG/VIENNA: Russian oil major Gazprom on Friday signed cooperation deals with Austrian energy group OMV as it tries to secure more lobbying power for its project to expand the Europe-bound undersea gas pipeline, Nord Stream.
Russian gas supplies, which account for a third of European gas consumption, have been increasingly politicized due to Moscow's involvement in the Ukrainian crisis.
Gazprom wants to bypass Ukraine, a prime route for Russian gas to Europe, by expanding a network of undersea pipelines, primarily Nord Stream, which runs via the Baltic Sea to Germany — plans opposed by Brussels.
Alexei Miller, Gazprom's long-standing chief executive, said on Friday "there is no doubt" the construction of Nord Stream-2, which foresees the doubling of the existing pipeline's capacity to 110 billion cubic metres (bcm), will be over by the end of 2019.
However, some European leaders are against the project, which is backed by E.ON, Germany's Wintershall , Shell, OMV and Engie.
Europe has been seeking to cut reliance on energy supplies from Russia, its erstwhile cold war adversary, as political tension has risen between the two over numerous issues, such as Moscow's involvement in the Ukraine's crisis and eastward expansion of NATO.
The existing Nord Stream pipeline is not utilized at full capacity due to anti-monopoly rules in Europe, known as the Third Energy Package. Gazprom insists that Nord Stream-2 is legal.
Gazprom said the deals signed with OMV in St. Petersburg on Friday included Russian oil supplies to the Austrian company.
A source familiar with Gazprom's plans said the Kremlin-controlled company wants to use OMV's lobbying power to get Nord Stream-2 on track.
"That's the main task of Friday's event, to secure OMV's lobbyism," the source said.
A preliminary asset swap deal was agreed in September. Under the deal, OMV will acquire a 24.98 percent of areas IV and V of the Achimov formation of the Urengoy oil and gas field in Siberia.
Miller also said on Friday that the company expects record-high gas exports to Europe this year after they rose by 29 percent to 44.4 bcm in the first quarter.
Gazprom woos OMV in pursuit for Nord Stream expansion
Gazprom woos OMV in pursuit for Nord Stream expansion
Lloyd’s market engaging with US government over Gulf maritime plan, officials say
LONDON: The Lloyd’s of London market is engaging with the US government’s International Development Finance Corporation over a plan to provide political risk insurance and guarantees for maritime trade in the Gulf, Lloyd’s market officials said on Thursday.
“Lloyd’s is engaging constructively with the US Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global center of excellence for war risk insurance,” a Lloyd’s spokesperson said.
The Lloyd’s Market Association, which represents the interests of all underwriting businesses in the Lloyd’s market, welcomed the engagement of US President Donald Trump, its CEO Sheila Cameron said separately in a statement on Thursday.
“Since Sunday 1 March, there have been at least 40 transits of vessels through the Strait of Hormuz. There remain approximately 1,000 vessels, approximately half of which are oil and gas tankers, with an aggregate hull value exceeding $25 billion in the Persian/Arabian Gulf and surrounding waters,” Cameron said, citing data.
Cameron added that the vast majority of these vessels were insured in the London market and insurance “currently remains in place.”
Insurance broker Marsh said on Wednesday it had met with US officials to explore solutions for restoring maritime trade.
The US Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, Trump said on Tuesday, adding he had ordered the International Development Finance Corporation to provide political risk insurance guarantees for maritime trade in the Gulf.
Earlier this week, London’s marine insurance market widened the area in the Gulf it deems as high risk as the conflict in the Middle East escalates.
