Bulgaria's Cabinet was preparing to seek damages for the idled properties that were due to host infrastructure for the now-abandoned South Stream gas pipeline, with the government approving on August 26 the methodology for calculating such damages.
"To this day, Bulgaria has not been officially notified of the termination of the project to build the South Stream gas pipeline. As such, the Bulgarian state is bound to carry out its duties [...], such as examining and approving investment plans, issuing construction permits and carrying out preliminary assessments for construction permits," the government media service said in a statement.
"Failure to carry out any of these duties could lead to court litigation and financial sanctions for Bulgaria," the statement said.
The methodology approved by the Cabinet aims to include all costs and possible lost revenue. The Cabinet will next call a tender to appoint an assessor who would evaluate the damages incurred by the state.
South Stream was meant to carry up to 63 billion cubic metres of gas from Russia to Hungary, passing under the Black Sea and then crossing Bulgaria and Serbia. Opponents have criticised it as economically unviable and pursuing political goals, namely cutting Ukraine out of the transit of Russian gas to Europe and increasing Moscow's influence in the countries the pipeline would traverse.
The pipeline also ran into opposition from the European Commission, which refused to make an exception from its energy infrastructure regulations – which would have banned Russian state-owned gas company Gazprom from owning any stake in the project, while also requiring that third-party suppliers be given access to the pipeline.
Russian president Vladimir Putin announced the project's cancellation in December 2014, saying the gas would be re-directed towards Turkey, but the tentatively-named Turkish Stream remains on the drawing board nine months later, as Turkey continues to hold out for a larger gas discount and appears more interested in securing gas supplies for its own economy, rather than playing a larger transit role, as envisioned by Moscow.
|November, 24, 09:45:00|
|November, 24, 09:40:00|
|November, 24, 09:35:00|
|November, 24, 09:30:00|
|November, 24, 09:25:00|
|November, 24, 09:20:00|
BLOOMBERG - As Saudi Arabia led OPEC’s output cuts this year to shrink a global glut, it’s lost out on market share in the world’s biggest energy consumer. Russia in September retained the top Chinese supplier spot for the seventh straight month, while the kingdom was third.
PLATTS - The quality of Russia's key Urals crude exports towards Europe will continue to fall next year as more of the country's low-sulfur oil flows are diverted eastward to China, Russian national oil pipeline operator Transneft warned.
FT - OCI — the world’s third-largest polysilicon maker by capacity and South Korea’s biggest — this month reported a 3,373 per cent increase in operating profit to Won78.7bn ($72m) for the July-September quarter, its best performance in five years. Rival Hanwha Chemical saw third-quarter net profit jump 25 per cent to a record Won252bn.
U.S. Rig Count is up 330 rigs from last year's count of 593, with oil rigs up 273, gas rigs up 58, and miscellaneous rigs down 1 to 0. Canada Rig Count is up 41 rigs from last year's count of 174, with oil rigs up 13, gas rigs up 30, and miscellaneous rigs down 2 to 2.