Displaying items by tag: gas supply

Ofgem has said that the UK is facing ‘a significant risk’ of gas shortages this winter due to Russia's war with Ukraine. It could possibly enter a ‘gas supply emergency’, leading to supplies being cut to the power stations using gas to generate electricity. This would place firms at risk of running out of money because of huge charges they must pay if they cannot deliver electricity. SSE,which operates four gas-fired power stations in the UK, is concerned that gas-fired power stations face millions of pounds worth of penalties ‘caused by events outside their control’.

African countries have some of the world’s deepest gas reserves. President Hassan said Russia’s invasion of Ukraine is an opportunity for gas sales: Tanzania aims to secure a new energy market outside Africa and has been working with Shell to utilise their vast offshore gas resources and export elsewhere. He said, ‘Whether in Africa, Europe or America, we are looking for markets.’ Nigeria, Africa’s largest gas producer, has similar plans. They intend to build a trans-Sahara pipeline, taking their gas to Algeria and Europe. They recently signed an agreement with Algeria and the Niger Republic to construct the 381-mile-long Trans-Saharan Natural Gas Pipeline, beginning in northern Nigeria. However there are concerns over the historic lack of investment in gas infrastructure that has hampered the energy industry. Many African countries with massive gas reserves have struggled to attract investment to build gas infrastructure projects that would have supplied the European market. Ask God to use the current Russian gas situation to take many African nations out of poverty.

Moldova has made history by buying gas from a source that was not Russia's Gazprom. The one million cubic metres came from Poland's PGNiG. Moldova will need much larger volumes if Russia cuts supplies, as it has threatened to do if they don’t agree to increased costs in a new contract. In the absence of a new deal Russia reduced supplies, prompting Moldova to declare a thirty-day state of emergency. Gazprom accused Moldova of ‘provoking a crisis’ and demanded repayment of a $709m (£514m) debt, which Moldova disputes. Officials say they would like to sign a new contract with Gazprom, but only if the terms are favourable. Negotiations continue. Moldova said PGNiG’s shipment was to test the ability of imported gas from alternative sources, and PGNiG was one of seven offers they had received. Critics accuse the Kremlin of hiking gas prices to punish Moldova for electing a pro-European president, Maia Sandu.