BLUE FUEL - · PDF fileBLUE FUEL December 2016/ Vol ... of annual gas exports both of Soviet...

Interview with Thilo Wieland, Wintershall’s Head of E&P in Russia, North Africa and South America

Evaluation of aggregate costs of power generation

Impressions of visiting an LNG-fuelled ship

‘Imperial Capitals’ performance took place in St. Petersburg

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BLUE FUELDecember 2016/ Vol. 9/ Issue 4

Gazprom Export Global Newsletter

© Gazprom Export

www.gazpromexport.com | [email protected] +7 (812) 646-14-14 | [email protected]

BLUE FUELGazprom Export Global Newsletter

eussi siht nI

Publishers Contact Info:www.gazpromexport.com | [email protected] +7 (812) 646-14-14 | [email protected]

December 2016/ Vol. 9/ Issue 4

To our readers...............................................................................................4

Interview with Thilo Wieland, Wintershall’s Head of E&P in Russia, North Africa and South America..........5

Gazprom beats all-time daily export records.................................................8

Gazprom Export’s 3rd gas auction successfully completed...........................8

Evaluation of aggregate costs of power generation........................................9

Gazprom sets up a new NGV company in Europe..........................................13

Impressions of visiting an LNG-fuelled ship................................................14

Natural gas for transport is essential for Germany’s ‘Energiewende’............16

Reflections by an old oil rat after a visit in a gas fueled ship’s engine room......................................................................................17

St. Petersburg Open ATP World Tour tournament.......................................19

‘Imperial Capitals’ performance took place in St. Petersburg.......................20


www.gazpromexport.com | [email protected] | +7 (812) 646-14-14 | [email protected] 5

The autumn of 2016 was a season of big records for Gazprom Group. In November Gazprom harvested a series of absolute records of daily supplies, reaching the all-time maximum of 614.5 mcmd on November 29th. Another achievement was our historical monthly record – this November our exports grew to 17.6 bcm, the figure which exceeds the annual gas consumption of Poland. We are also on track to hit this year an absolute record of annual gas exports both of Soviet times and the history of modern Russia. Moreover, the share of Gazprom’s gas in Europe grows steadily and has almost reached about 1/3rd in the European gas consumption.

What are all our records about? Aside from the pricing environment (Gazprom’s contract prices were noticeably more attractive than hub prices this autumn) and weather conditions (which were pretty “normal” all over the year), Gazprom remains the only supplier able to securely provide significant additional volumes to its clients in Europe. Surprisingly, the long-awaited wave of LNG coming to Europe as the result of the vanishing “Asian premium” didn’t happen. Instead, during the three quarters of 2016 Gazprom’s exports grew by impressive 11 bcm compared with the same period of 2015, and the last quarter even by the modest estimates will increase this figure by half. Our capability to promptly react to demand fluctuations is extremely important in times of the falling indigenous production in Europe and continuing inspections on ageing nuclear power plants.

Gazprom has huge production capacities of more than 600 bcm per year and an extensive pipeline network, which means that Gazprom can easily double its exports to Europe if there is a demand. Our new pipeline routes will contribute to

a greater flexibility of our exports bringing natural gas to the consumption growth areas in North-Western Europe and Turkey.

But will there be enough demand? At Gazprom we answer this question pragmatically, but positively. Over the last two years we have been witnessing a revival of natural gas sector in Europe. There is no double-digit growth indeed, rather a modest comeback of gas to power generation.But big deals always start small. We believe that the European climate policy could be a solid foothold for the future dawn of natural gas. The UK has already introduced the carbon tax, we have heard such discussions taking place in France. We hope that the recent ratification of the Paris Agreement by the EU will allow Brussels to figure a concrete set of measures to fight global warming, thus building a sustainable and secure energy system of the future. And natural gas is destined by nature to take a strategic place in it, paving the road for a wider use of at the moment heavily-subsidized renewables.

We are confident that in trustworthy dialog between the gas industry, regulators and European policy-makers we will give a birth to a truly golden age of natural gas on European shores. And we welcome new suppliers to Europe since they spark interest towards natural gas. As far as our ability to compete is concerned – our record figures simply speak for themselves.

THILO WIELAND, an industrial engineering and business management graduate, has been a member of the Wintershall Board of Executive Directors since December 2015 and is responsible for Exploration & Production in Russia, North Africa & South America. After studying industrial engineering at the Technical University of Berlin, he began his career in 1999 at Wintershall Erdgas Handelshaus in Berlin. Since then he has held various positions within the Wintershall Group, among others as Head of Department Natural Gas Supply West at WINGAS. Until 2013, he represented Wintershall’s shareholder interests in the Nord Stream and South Stream projects before becoming Vice President, Strategy and Portfolio Management, within the Wintershall Group. As General Manager of Wintershall Libya, Wieland has been responsible for the activities of Germany’s largest internationally active oil and gas producer in the North African country since 2014.

«I look forward to more exciting and challenging projects with our Russian partners at Gazprom»

To our readers

Interview with Mr. Thilo Wieland, Wintershall’s Head of E&P in Russia, North Africa and South America.

Mr. Wieland, thank you for talking to “Blue Fuel”. You started your career at Wintershall Erdgas Handelshaus. Since then you have held various positions at Wintershall. You have devoted a lot of time to the natural gas trade. Could you please explain the role that natural gas currently plays in Wintershall’s E&P activities and trading business?

Natural gas plays an important role for us – it comprises a substantial part of our total production volume. Incidentally, we managed to increase our production last year by 13 percent to 153 mmboe, which was partly due to the growth at Achimgaz, our joint project with Gazprom in Western Siberia.

In the coming years we want to continue expanding the production of oil and gas – to 190 million boe in 2018, mostly via the further development of Achimgaz but also our Norwegian activities, as well as the Vega Pléyade gas project in Tierra del Fuego off the coast of Argentina, which commenced production in February 2016.

The course has thus been set for further growth at the source.

What role does Achimgaz play in Wintershall’s global E&P portfolio?

Achimgaz is a German-Russian success story. Together with our partner Gazprom, we have been producing natural gas and condensate in Novy Urengoy in Western Siberia for more than 10 years. Since commercial production started in 2011, we have jointly extracted more than 20 billion cubic meters of natural gas.

Also the Severneftegazprom joint venture is developing excellently. This year we have broken the 200 billion cubic meters mark. This is an important milestone. These are very good figures and we very much hope that we can move forward in future at a similar speed. The natural gas produced each year by our joint ventures in Russia (around 30 billion cubic meters) would be enough to supply a third of all German households.Moreover, through our asset swap we have received 25% plus a one share in blocks 4 and 5 of the Achimov formation in the Urengoy natural gas and condensate field. It is estimated that up to 274 billion cubic meters of gas and 74 million tons of condensate lie there.

This clearly offers considerable potential. However, as you are aware, this project presents some challenges. Namely

Wintershall in Argentina: Wintershall is the fourth-largest producer of natural gas in Argentina with operations in Neuquén, Tierra del Fuego and Mendoza provinces



the development in adverse weather conditions at the Arctic Circle, which demands substantial time and financial resources.

We are confident however that with our reliable partner Gazprom Dobycha Urengoy we will be able to accomplish such an ambitious goal.

Some companies, like Shell for instance, have started focusing more on natural gas than on oil for their future activities. What is Wintershall’s position in this regard? How will natural gas and oil be balanced at Wintershall in the future?

As I said, natural gas currently accounts for the majority of our production volume. Experts believe that, in the long term, natural gas will replace oil as the dominant fuel in the global energy mix. This does not mean that oil is becoming any less important – in particular the demand for oil will rise, for instance, in the emerging countries – but given the underlying climate policy conditions it is expected that the demand for gas will increase markedly in comparison. Overall however, we are sure of one thing: oil and gas do have a future! 50 percent of the world’s demand for energy will still be met by oil and gas in 2040.

For us this means that we will continue to work with a diversified portfolio that includes natural gas, condensate and oil of course. Accordingly, we are planning to invest around 4.8 billion euros in the next five years in our worldwide natural gas and oil production.

As the person responsible for Wintershall’s international E&P activities, what are your goals in this position?

The market environment is tight owing to the currently quite low oil and gas prices. However, the oil and gas market has always been turbulent. And it will remain so. Continued low oil and gas prices will, quite naturally, be reflected in our 2016 balance sheet.

Given the current market conditions, our task is to precisely analyze the complex and changing business environment,

identify problems but also identify opportunities and potential. We have developed a problem-oriented strategy in this regard. We are saving, and we are reducing costs. But we are also investing. There is no contradiction here. Where we see potential savings, expenses shall be reduced significantly in 2016. To this end, the current operating expenses will be further optimized and the expenditure for exploration, development and technology particularly reduced in countries with a high cost environment. As a result, this is reducing the number of exploration wells in the current year. The already planned expenditure savings amount to 200 million euros for 2016.

Wintershall produces gas and oil in different regions of the world: in deserts in the Middle East and Pampas in Argentina, in the arctic tundra in Russia and in the storming waves of the North Sea. What is Wintershall’s philosophy when choosing an asset to develop in any specific region?

We are focusing on growth at the source. We will keep focusing on our core regions and keep investing in selected projects, especially in regions with favorable production conditions such as Russia and Argentina, where we maintain strong partnerships as well as regional and technological expertise. Paired with our operational excellence and reliable partnerships, we will expand our production and ensure further growth.

What are the prospects for developing relatively mature hydrocarbon reserves in Europe? Which oil reserves could compensate for the declining domestic production in Europe?

It’s no great secret that the European reserves are gradually depleting and the demand for imports will continue to rise. The EU already meets its oil requirements almost entirely through imports. Here Russia is the most important supplier and will certainly continue to remain so.

The same is true for the natural gas provision. The European Union relies

mostly on gas imports from Russia. Thus this country plays a special role in supplying the EU with natural gas. We are in the fortunate position that the majority of the world’s reserves lie at pipeline distance to Europe. The expansion of the Nord Stream pipeline will further strengthen the security of supply.

From your point of view, how has the fall in oil prices affected the global development of conventional and unconventional oil reserves?

The extremely volatile oil price has had obvious consequences for the entire industry. Planned projects have been reassessed as to their economic viability, while planned investments have been cancelled or postponed. This applies equally to the production of conventional and unconventional hydrocarbons. However, the conditions for the E&P industry are not the same in every country. For instance, in Germany, we have entirely different conditions than in the USA – especially in regards to the production of unconventional hydrocarbons. For fracking plans in unconventional reserves, we have a de-facto moratorium which makes even the exploration nearly impossible. The situation in the USA, on the other hand, looks quite different. Despite the decrease in oil prices, the United States is producing substantial amounts of shale oil and gas. And the International Energy Agency (IEA) expects even a further increase in shale gas production.

Hence we are developing Wintershall in Argentina into a competence center for unconventional resources: we are an operator in the promising Vaca Muerta formation. The formation is one of the largest shale gas and shale oil formations worldwide: the Energy Information Administration (EIA) estimates that the formation has recoverable reserves of 16.2 billion barrels of oil and 8.7 trillion cubic meters of gas. How important for Wintershall is its energy collaboration with Gazprom?

Last year we celebrated what is now more than 25 years of successful cooperation with Gazprom in the historic surroundings of the Chinese Palace in Lomonosov, near St. Petersburg. Over the past two decades Wintershall and Gazprom have contributed significantly to ensuring Europe’s energy security and have supplied the continent with more than 700 billion cubic meters of natural gas. We are currently very successfully involved in the projects Achimgaz and Severneftegazprom. Both joint ventures are producing gas and condensate in Western Siberia. Our engagement with Gazprom includes activities in the North Sea, in Libya as well as infrastructure projects such as the Nord Stream pipeline in the Baltic Sea. We have a share in the world’s longest underwater pipeline, whose construction has set technological standards. The partnership functions smoothly and I look forward to more exciting and challenging projects with our Russian partners at Gazprom!

At Achimgaz In Siberia, one of the most remote regions in the world, our employees produce up to 18 million cubic meters of natural gas every day - in a region with 250 days of winter per year and in temperatures as cold as -40°C



Although the principles of electricity supply and demand in Europe are market-based, they are based only on marginal production costs. Such an approach narrows the role of

natural gas to a balancing fuel not taking into account capital and operational costs, externalities and subsidies. On the contrary, measured on the basis of aggregate electricity production costs, it becomes evident, that natural gas is less competitive only in comparison with geothermal energy, while enjoying relatively low external costs and high operational flexibility needed to meet peak demand. Potential growth in prices of CO2 emissions may result in even greater competitiveness of natural gas compared with coal, thus challenging the necessity of subsidizing renewable energy.

Electricity demand and supply equilibrium on European markets is shaped by marginal production costs which form a merit order curve. At the moment, ranking fuel types by marginal costs only narrows down the role of

natural gas to a balancing fuel (see graph1). But this ranking order takes into consideration neither the consequences of using one or another energy source for the society and environment (externalities or external costs), nor capital and operating expenses (levelized cost of energy), nor additional support measures from regulators (subsidies).

Evaluation of aggregate costs of power generation by fuel types

Leonid Loginov, Leading specialist, Contract Structuring and Price Formation Directorate, Gazprom Export LLC

Graph 1. Ranking fuel types by marginal costs (DIW 2013).

Gazprom Export successfully completed the third gas auction

Gazprom sets records in daily gas exports to EuropeIn November 2016 Gazprom set absolute daily records of natural gas supplies to Europe overpassing the previous records which were established during the bitter frosts of January 2008. Highest export volumes were recorded in several consecutive days with the historical maximum of 614.5 mcmd reached on November 29th which is more than enough to satisfy daily demand in energy of all European households .

At the beginning of December 2016, Gazprom Export beat the all-time historical record set in 2013 (161.5 bcm). «Demand for Russian gas is so high as if severe frosts have been set in Europe. This is a further proof that Russian gas is competitive and highly sought energy source on the European market. And that the new gas transit routes for reliable supplies — the Nord Stream 2 and the TurkStream — are needed by foreign consumers», — Alexey Miller, Chairman of Gazprom Management Committee said.

From August 31st to September 2nd Gazprom Export conducted the third gas auction for gas supply to Europe. Following the action’s results, contracts with 11 customers for total volumes about 2 bcm of gas were signed. Gas will be supplied to clients during the winter season 2016/2017.

Like at the first ever auction held in September 2015, gas was offered at Greifswald, Gaspool and Olbernhau delivery points. In addition to these points the customers were offered an opportunity to take gas at Baumgarten and Arnoldstein.

“We are satisfied with the results of the auction. The fact that once again we have been able to sell additional gas volumes at the direction where we tested the first auction sales last year proves that this trading model worked not only once but is able to be used regularly. Gas sales on an auction basis complements our deliveries within the long-term contracts. We are aimed at conducting gas auctions in the future.”, — said Elena Burmistrova, Director General of Gazprom Export LLC.

“Gas auctions represent a good additional opportunity to market natural gas in Europe. In addition to traditionally strong interest to Greifswald delivery point, during the latest auction about one quarter of the total volumes was sold with a delivery to Austrian Baumgarten. — said Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee. — Interestingly, not a single lot

was sold at the OPAL direction. It proves that OPAL pipeline capacities are still demanded by nobody but Gazprom”.

Gazprom Export carried out the first gas auction in September 2015. Addressing the challenges of the evolving energy market, the company tested a new mechanism of sales for gas delivered via the Nord Stream pipeline. As a result over 40 lots were sold to 15 clients, with a total volume of over 1.2 bcm of gas.The auction for the gas supply to the Baltic States in the 2nd, 3rd and 4th quarters of 2016 was held by Gazprom Export in March 2016. At the auction more than 80 lots were sold to 6 clients with a total volume of more than 420 mcm of gas. The 3rd gas auction was announced on July 14, 2016. The auction mechanism of export gas sales naturally complements our existing system of long-term contracts.



Graph 7. Levelized cost of energy with externalities (in 2012 prices)

Graph 6. Levelized cost of energy, 2nd half 2016 (for the comparing purposes is given with a deflator in 2012 prices)

Graph 2. Ranking fuel types by marginal costs adjusted for externalities (in 2012 prices).

Graph 4. Forecasted demand curve in Germany at zero CO2 prices (THEMA Consulting Group)

Graph 5 . Forecasted demand curve in Germany at €80 per 1 ton of CO2 (THEMA Consulting Group)

When summing up marginal costs and externalities, the largest components of which are climate change stemming from a growth in CO2 emissions, dwindling energy resource base and an increase of particulate matters (NH3, SO2, NOx) in the atmosphere, the ranking order dramatically changes: natural gas becomes more competitive in comparison with coal in 2012 prices (see graph 2).

If measured by a levelized cost of electricity production which takes into account capital and operating expenses over the whole infrastructure lifecycle as well as installed capacity utilization rate, it becomes clear that natural gas loses competition only to coal (see graph 6)…

When taking into account both levelized cost of energy and externalities, natural gas becomes more competitive than coal, however still preforming worse than some types of renewables (see graph 7)…

… and finally, by aggregate costs of electricity production, including cumulative effect of all three factors (levelized cost of energy, externalities and subsidies), natural gas loses out only to geothermal energy (see graph 8).

Graph 3. Ranking fuel types by marginal costs adjusted for externalities (in 2015 prices).

Different forecasts of electricity production costs in Germany, including different price levels for CO2 emissions, prove greater competitiveness of natural gas over coal with an increase of CO2 prices (see graphs 4 and 5).

If calculated in 2015 prices and taking into account the deflator, natural gas becomes even more competitive both against anthracite and lignite (see graph 3).

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Gazprom Group established the new company Gazprom NGV Europe which will focus on development of NGV sector in Europe. The new company is a wholly-owned subsidiary of Gazprom Germania GmbH with headquarters in Berlin. Gazprom NGV Europe will continue the current CNG and LNG businesses of Gazprom Germania. Gazprom NGV Europe will

conduct its business in full concordance with all the regulatory requirements of the German Energy Industry Act, which stipulates the separation of trade and transportation of natural gas.

Mr Uwe Johann from Gazprom Marketing and Trading Ltd has been appointed as Managing Director of the new company.

Gazprom Group established a new company to develop gas for transport business in Europe

Comparison of marginal costs of electricity production with the level of renewable energy subsidies brings to a clear finding – the level of subsidies of renewables equals to marginal production costs of electricity from natural gas. In other words, an increase of subsidies above this level is not economically feasible. Moreover, if measured by a levelized cost of energy, renewables already turn to be more expensive energy source.

The above-mentioned allows making two conclusions. Firstly, subsidizing renewable energy is not an economically-feasible approach. Secondly, we can question the current principles of demand and supply formation on European markets, which don’t consider full-cycle electricity production costs and, therefore, distort the real situation on the market.

From the point of view of aggregate costs (which include both engineering costs and public expenses) reflecting competitiveness of energy sources,

an optimal energy balance should be based on wider use of natural gas along with reduced share of coal and a number of the most expensive alternative energy technologies. This is determined both by lower external effects and higher operational flexibility of natural gas generation. The flexibility of electricity generation is essential to meet peak demand and is of prime importance taking into account potential disruptions in supply of electricity derived from renewables. The use of natural gas in power generation looks even more commercially feasible given a possibility for emission prices to increase up to €25-30 per ton of CO2 to 2030 in order to achieve climate goals in the EU countries.

Similar conclusions can be found in expert gas consumption forecasts. Specifically, according to estimates of the leading industry analytical centers, gas consumption in Europe in 2030 will grow by 23% in comparison with 2014 and by 25% in 2035.

CNG station in Bamberg (Bavaria, Germany)

Fueling a Solbus bus with LNG Fuelling a Mercedes-Benz B-Class with CNG

Graph 8. Levelized cost of energy including externalities and subsidies (Incl subsidies for 2012 and the volume of historical direct subsidies – the subsidies introduced pre 2012 but preserving their effect in 2012).

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First of all let me explain, I have never worked in a methane fuelled ship, there wasn’t any around when I was an active engineer. At least not in the companies I sailed for.

My first experience with methane as fuel was about ten years ago, a local road ferry in Norway, and the immediate reaction I had – I need to get a rag and moisten it in diesel oil as there was something missing. The smell of fuel oil. Then I noticed how extremely clean the engine room was. Not one drop of oil anywhere, well I did manage to find one little puddle of lubrication oil under the shaft seal!

I have seen a few more since then and there are a few things with methane fuelled engines that makes me wish I could start all over again in a gas fuelled ship. First the main drivers for using methane gas as fuel – no sulphur, low NOx and best of all no particles. Sulphur is regulated in the North Sea, the Baltics as well as in US and Canadian waters. NO x is regulated in US and Canadian waters and will be in the North Sea and the Baltics aimed at new ships. Particles are not regulated but has been in the pipeline for a while.

The reduction of these three will have a great impact on human health in coastal areas. But the use of methane as fuel has more benefits, maybe not as big as the three above but anyway. I’ll try to list some of them here.

Ships perspective

Personnel working in an engine room is not in contact with Heavy Fuel Oil (HFO) and as a consequence there are no fuel oil separators to clean and no heating of day and settling tanks which also means no PAH (polycyclic aromatic hydrocarbons) from the vent (you know that the lovely smell of heated HFO contains parts that can cause cancer). The absence of HFO separators means no sludge (generally you get 1.5 % of the consumed HFO as sludge); no sludge gives you less troubles with authorities in port (no need for a “magic pipe”), and no trace heating. The reduction of heat sources gives you a much better engine room temperature and thus a better work environment. No HFO also means less or no heavy duty cleaning detergents giving you an easier job to clean your bilge water as the bilge water separator works

better without the detergents. In the engine room, methane gas combusts without particles which results in cleaner cylinders, exhausts, turbochargers, economizer and crank house (less or no cleaning of exhaust boilers and turbochargers also reduced cleaning of lubrication oil separators if installed). It also leads to less cleaning in engine room as there is no soot particles in exhaust as you frequently have minor exhaust leaks on the exhaust systems expansion bellows and other parts. On top of this the noise level in the engine room is reduced at least when using low pressure gas systems where the diesel engine in gas mode runs as an Otto engine with lower ignition pressure.

Extended running hours between overhaul is also a result of using methane as fuel. One company I have talked to has extended main engine overhaul (pistons and liners) from 16.000 hours to 20.000 hours and is planning on further extension to 24.000 hours, and the exhaust boiler looks like new after three and half years of continuous running. Lubrication oils can be used for longer periods and with lower total base number (TBN) which means cheaper lower lube oil expenses.

Methane as fuel is also reducing the unplanned overhauls that stem from bad quality fuel.

On board in general – bunkering and bunker tanks are associated with stricter safety measures, otherwise there isn’t much that the crew notice in daily work except for the nice white boiler suits without the oily smell that the engine crew is wearing. The oil rat has disappeared. The captain and chief mate has also noticed that they don’t need to get the sundeck cleaned from soot every morning. On passenger ships there is no bill for cleaning passenger clothes from oily soot anymore.

Excess heat from the boiler (steam), earlier used for heating HFO, can be used to produce electricity.

The owner’s perspective

Using methane as fuel has reduced the time spent in the office arguing with fuel suppliers about the quantity and quality of the fuel last purchased, some owners spend a considerable amount of time discussing these two items.

It also reduces down time due to breakdowns.

Engine crew can be reduced due to the fact that much of the work earlier spent on fuel residuals and purifiers will be redundant, even the deck crews work will be more efficient since much of the time spent on cleaning the ship will be reduced and possible to do with a hose without chemicals. The reduction in use of chemicals on board means less money spent.

Using Methane should result in lower insurance cost since the risk of an oil spill when bunkering, heating of tank and accidents has been greatly reduced.

And last but not least, using methane as fuel usually results in a reduction in fuel consumption due to better combustion and cleaner systems which results in better fuel economy.

Investing in a steam turbine can reduce running cost even more since the steam produced in the exhaust boiler can be used to produce electricity

The absence of sulphur and particles in the combustion will improve crew health. I have not seen any scientific evidence,

Reflections by an old oil rat after a visit in a gas fueled ship’s engine room

Klas LjungmarkKlas is Director of LEVA Ltd, London. Recently he was principal technical advisor at the Society for Gas as a Marine Fuel (SGMF), a non-governmental organisation formed in 2013, based in London. At SGMF he was responsible for among other things the development of their bunkering safety guidelines for Gas as Marine Fuel. Before that, he spent nine years at the Swedish Transport Agency (STA), working on regulatory questions about air emissions and alternative fuels, including LNG and methanol. During his time at the STA he was responsible for, among other projects, the regulatory part of

making the Viking Grace LNG bunkering possible and the Bit Viking LNG conversion. He is a marine engineer and has spent 18 years at sea in different types of ship and 10 years as head of a mechanical maintenance department.



Natural gas as a motor fuel is essential to achieve Germany’s energy policy goals

Kurt Sigl, President of the German Federal Association eMobilität e.V. (left), called for equality of opportunity for all alternative fuels during a discussion panel with Uwe Johann (Managing Director Gazprom NGV Europe) and Reiner Mangold (Head of Sustainable Product Development AUDI AG)

the success of Germany’s energy transformation. According to invited experts from the worlds of business, academics and the media, policymakers in Germany pay scant attention to these low-carbon, methane-containing energy sources. Participants concluded that electromobility alone will not be enough to achieve the energy transformation in the transportation sector.Сurrently Germany is not achieving its climate protection goals, warned Dr Timm Kehler from the Initiative Zukunft ERDGAS e.V., a German association promoting natural gas as a motor fuel. He said this was primarily due to the insufficient measures taken by mobility sector. He also pointed out that in 2016 there were fewer new registered CNG vehicles in Germany than in the preceding years. «In order to make up for lost ground and still achieve the climate protection goals in the future, it is necessary to take action aimed at raising the attractiveness of natural gas as a fuel», Kehler concluded.

Matthias Maedge, General Secretary of the International Specialist Association NGVA Europe, stressed: if fair market conditions are created, by 2030 around 20 per cent of all newly registered vehicles in Europe will be operated with natural gas. He mentioned that in the EU natural gas is still an «unloved child» because when it comes to sustainability the focus is almost exclusively on electromobility.

Kurt Sigl, President of the German Federal Association eMobilität e.V. aimed at the promotion of e-mobility, also underlined the advantages of a wider use of natural gas. He

reminded that «we all have the same objective» and called for closer cooperation between all participants in order to achieve a significant reduction in CO2 (carbon dioxide) and NOX (nitrogen oxide) emissions.

The participants agreed on the necessity of a prompt clarification of the legal framework in order to grant equal conditions to all alternative fuel types. «Policymakers should recognize the indispensable role that natural gas can play in the success of the energy transformation, also in the transport sector, and create a level playing field for all alternative fuels», emphasized Uwe Johann, Managing Director of Gazprom NGV Europe.

Delegates of the Energy Conference

but just imagine the difference with no particles in the breathing air and no PAH from heated oil and sludge will probably extend the life of the engine crew substantially. If combine this with the reduced use of strong chemicals. I remember cleaning scavenge air systems by hand and then using gasoil to get rid of the mixture of oily soot, and then throwing away the soot and oil stained white tshirt after being ashore a few hours somewhere in the hot Central American night.

Health effects from banning HFO and using Methane as fuel in the merchant navy on people ashore would be

astounding according to recent science. Probably some around 60.000 lives could be spared globally according to the study «Mortality from Ship Emissions: A Global Assessment». Corbett et all (http://pubs.acs.org/doi/full/10.1021/es071686z). The reduced sound emitted from the engines through water should give the cetacean (aquatic marine mammals) a better environment although the worst noise emitter is the propeller.

Please note that what is voiced in this article is my personal opinion, which in no way has been scientifically proven although it is common sense.

On the sidelines of the season finale of the German Touring Car Championship (DTM) in Hockenheim on October 14, 2016, Gazprom Germania and Audi

jointly held an energy conference that focused on the contribution which natural gas, biomethane and synthetic, renewable methane can make towards

The new Silk Way to be fueled with gas:Beijing hosts round table devoted to the role of natural gas for the region

The international Silk Way Rally ended in Beijing with a festive ceremony on 24th July. Gazprom acted as the main sponsor of the tour that connected capitals of Russia and China. It has been a challenging and fascinating route, as rated by the participants themselves. The variety of competitive stages along the rally route required the drivers to show all their top qualifications to reach the final point.

On the sidelines of the rally, the Saint Petersburg State University of Economics (the UNECON) with the support of Gazprom Export, held in Beijing a round table on the role that natural gas can play for the economies of the regions that form a “new Silk Way”. Leading Chinese academic institutions participated in the gathering.

http://pubs.acs.org/doi/full/10.1021/es071686z

http://pubs.acs.org/doi/full/10.1021/es071686z



(с) Silk Way Rally

finalist Milos Raonic (Canada), Wimbledon 2010 finalist Tomáš Berdych (Czech Republic), Roberto Bautista Agut (Spain), Alexander Zverev (Germany), and Viktor Troicki (Serbia).Three outstanding Russian tennis players were also in the tournament: Andrey Kuznetsov, Mikhail Youzhny, and Evgeny Donskoy.

The final saw German player Alexander Zverev win his first ATP tournament, defeating Stan Wawrinka 6:2, 3:6, 7:5. Zverev won his first title at the third attempt, while Wawrinka lost a final match for the first time in his career.

The tournament’s 2016 prize fund amounted to $920,000.

St. Petersburg Open ATP World Tour International Tennis Tournament

In his opening speech, Stanislav Babich of the UNECON stressed that with the integration of the Eurasian economic union and the “New Silk Way economic belt, new transport corridors are establishing within. And here, supporting these routes with natural gas as a fuel offers great opportunities. Using natural gas as motor fuel can bring substantial environmental and economic benefits. Vast gas reserves of Russia, Kazakhstan, Uzbekistan, Turkmenistan, Azerbaijan and Iran can create the resource base to fuel these transport routes. The development of transport infrastructure and advance in transportation technologies, that involve truck transport and potentially railroads, not only supports investment and creation of new jobs for the region, but also boosts cooperation in the research and science of the countries involved.

Being the most environmentally friendly fossil fuel, natural gas offers a unique mix of environmental safety and profitability. It easily beats every competition. This is what makes natural gas a fuel of choice for the building of low-carbon economy and for solving the pollution problems faced currently by urban residents of the megacities in the Eurasian macroregion. This is an issue too well-known to the

Chinese capital.“As the cleanest and most efficient fossil fuel natural gas turns out to be the fuel of choice to create a low-carbon economy in China”, stresses the head of the Research institute for low carbon economy at Tsinghua University, professor He Jiankun. He welcomed the Paris COP 21 agreements as an important step that marked the end of the old energy age globally. In the new energy system, which will be based on renewable energy sources, the role of natural gas is destined to increase significantly. Nowadays the share of natural gas in the primary energy mix of China is below 7%, but the new environmental policy of the government will allow it to reach 10% already by 2020 and grow further. This would mean a corresponding increase in Chinese gas imports. In parallel, the share of coal in the fuel mix should decrease from the current 64.4% to 60% in 2020, 50% in 2030, and 30% by 2050.

Creating an impetus for energy reform is the core of Chinese policy for achieving its commitments for lowering the CO2 emissions, stressed the expert.

In view of increasing role the gas industry plays in Russian-Chinese cooperation, the initiative of such round tables will continue in the future.

The 21st St. Petersburg Open, an Association of Tennis Professionals (ATP) World Tour international tennis tournament took place at St. Petersburg’s Sibur Arena concert and sports complex on September 19-24, 2016. The tournament’s title sponsor, for the second year in a row, was Gazprom Export.

Even before the tournament started, spectators were paying special attention to the performance of reigning U.S. Open champion Stan Wawrinka (Switzerland), since the St. Petersburg Open was his first competition since that triumphant victory.

Besides world No. 3 Wawrinka, other players delighting tennisfans with their skill in St. Petersburg included Wimbledom 2016



The first event based on the Gazprom-OMV (Austria) Memorandum of Understanding on implementing a joint cultural project — a theatrical gala performance entitled Imperial Capitals: St. Petersburg-Vienna — took place on October 4, 2016 in the Grand Hall of the D. D. Shostakovich St. Petersburg Academic Philharmonia. This evening of music featured a musical performance bringing together various fields of the arts. Actors, musicians, and singers took the stage, with the whole production accompanied by visual light effects projected onto the walls and ceiling of the Philharmonia’s Grand Hall.

The ‘Imperial Capitals’ performance took place in St. Petersburg

The concert participants included a number of leading Russian and Austrian musicians, along with soloists from the Vienna State Opera, the Bolshoi Theater, and the Mariinsky Theater, and many more. Yuri Bashmet, a People’s Artist of Russia award holder, welcomed the audience from the conductor’s podium of the Moscow Soloists chamber ensemble. The program included highlights from the works of Mozart, Tchaikovsky, Glazunov, Strauss, Mendelssohn, Rossini, and other composers.

Over a hundred children from various social service institutions in St. Petersburg and the Leningrad Region were invited to this event. All proceeds from the gala performance’s ticket sales will be donated to a charity fund which projects are aimed at helping children with grave illnesses.

The evening was organized by the Gazprom Export company.

A reciprocal cultural event based on the Memorandum will be held on December 14, 2016 at the imperial Hofburg Palace in Vienna.

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