The Ukraine is moving to find new energy sources. The October 27 visit of Russian Prime Minister Vladimir Putin to the nation's capital, Kyiv, failed to result in any new agreements (except a protocol of intention). The warming in relations from the election of pro-Moscow Ukrainian president Viktor Yanukovych has not extended to the energy field.
In October, Ukrainian Deputy Prime Minister Andrey Klyuyev reported he was negotiating with Azerbaijan to increase supplies of Azeri crude to be delivered to their Kremechuk refinery. (www.oilandgaseurasia.com/news/p/0/news/9049. Ukraine is interested not only in Azeri oil, but natural gas, as well. Ukrainian First Deputy Minister of Fuel and Energy Sergiy Chekh announced the cabinet had approved a memorandum that will authorize Azerbaijan to send 5 bcm per year of natural gas. This will be an important source of feedstock after Ukraine's planned SPG Terminal begins operations. The ultimate capacity of this terminal will be 10 bcm per year, so Azerbaijan can provide 50% of capacity. (www.today.az/print/news/business/77519.html)
We reported earlier that Ukraine is trying to maximize use of the Odessa-Brody oil transit line by reversing flow and accepting Venezuelan oil for delivery to Belarus. The Russian oil company "Transneft" plans to send observers to monitor the pumping (www.oilandgaseurasia.com/news/p/0/news/9542). This is the same company being investigated by the Russian Audit Chamber, after a minority stock holder said it had stolen up to $4 billion in another project. ("Transneft Accused of Stealing $4 billion", The St. Petersburg Times, November 19, 2010)
Dr. James J. Coyle is available to speak to your organization or at your event. Please contact him at jimcoyle@verizon.net.
