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The Ministry of Oil organizes a panel discussion on the gas leakage from the Nord Stream pipeline network in cooperation with the Organization of Petroleum Exporting Countries

01-11-2022

The European market is the second largest importing gas market globally after the Asian market, and its dependence on imports reaches 67%, and it is most affected by the rise in spot gas prices. • OAPEC estimated the quantities of gas leaked from the Nord Stream accident at about 0.75 billion cubic meters, which is an amount equivalent to the tonnage of 8 typical LNG carriers combined. The amount of gas leaked from Nord Stream amounted to 1.3 billion dollars in losses, according to OAPEC estimates • The environmental effects of gas leakage from Nord Stream are equivalent to 15.5 million tons of carbon dioxide, which is the amount emitted by 3.3 million gasoline-powered cars for a whole year! • Al-Zour port received, during the first nine months of 2022, more than 4.5 million tons of liquefied natural gas from several destinations, and the concluded contracts save millions of dollars per month Today, Tuesday, November 1, 2022, the Public Relations and Information Department of the Kuwaiti Ministry of Oil organized a panel discussion entitled “Gas Leak from the Nord Stream Pipeline Network and the Economic and Environmental Repercussions,” in which the representative of OAPEC, Engineer Wael Hamed Abdel Moati, Gas industries expert in the organization. Several interested researchers from the technical and economic affairs in the ministry, guests from the Environment Public Authority, the Kuwait Institute for Scientific Research, the Ministry of Electricity, Water and Renewable Energy, and the media. At the beginning of the discussion seminar, the Director of Public Relations and Information at the Ministry of Oil, Sheikha Tamader Khaled Al-Ahmad Al-Jaber Al-Sabah, said that the seminar organized by the ministry in presence is the first since the outbreak of the Corona pandemic. The ministry has had to hold seminars and seminars electronically over the past two years. She stated that the Ministry of Oil is keen to return the presence interaction in the seminars and seminars it holds to ensure that all attendees benefit from the seminar and to ask questions from the attendees, stressing that the ministry continues to have many seminars during the coming period, which will cover many oil issues in the local and global scene. An expert in gas industries in the Organization of (OAPEC), Engineer Wael Hamed Abdel Moati, said that the European market is the second largest importing gas market globally after the Asian market. The degree of its dependence on imports reaches 67%, noting that Russia accounted for about 32% of the total European gas demand in 2021, topping the list of gas exporters to Europe. The European market is also the most affected by the rise in spot gas prices, as it follows the pricing system based on supply and demand in the spot market, amounting to more than 70% of total imports, due to its unwillingness to sign long-term contracts with major producers. Regarding the most major economic repercussions of the gas leakage accident from the Nord Stream-2 and Nord Stream-2 pipelines, he explained that OAPEC estimates with engineering models indicate the leakage of about 0.75 billion cubic meters of gas, a quantity equivalent to a combined load of 8 LNG carriers (170,000 meters tonnage). cubic each) which completely leaked into the Baltic Sea into the atmosphere, with a loss of 1.3 billion US dollars. As for the environmental effects resulting from the accident, Eng. Wael explained that it caused the leakage of more than 555,000 tons of methane, which is considered the most harmful to the environment from carbon dioxide gas due to its high ability to trap heat, as this amount is equivalent to about 15.5 million tons. Of carbon dioxide, which is the amount emitted by 3.3 million gasoline-powered cars in an entire year. On the most prominent lessons learned from the European gas crisis, the lecture concluded: • The importance of diversifying the sources of gas supply and not relying on a "single source," which highlights the importance of liquefied natural gas in achieving energy security, which can be imported from several destinations worldwide. • The importance of long-term contracts to ensure the security of supplies and to avoid consumers' exposure to sudden fluctuations and sharp rises in spot gas prices • Balance between climate issues and decarbonization on the one hand and achieving energy security, on the other hand, to ensure a sustainable energy system in the future. In this context, the OAPEC expert praised the "Al-Zour" liquefied natural gas project in the State of Kuwait, which started operation in July 2021, and is the largest project of its kind in the Middle East and North Africa, with a gasification capacity of 3 billion cubic feet per day and storage capacity. Up to 1.8 million cubic meters. This project enabled the State of Kuwait to diversify its sources of gas supplies by importing liquefied natural gas from several destinations. During the first nine months of 2022, Al-Zour port received more than 4.5 million tons of liquefied natural gas, according to preliminary estimates from several destinations, including the State of Qatar and the states. The United States, Nigeria, the United Arab Emirates, the Sultanate of Oman, and Trinidad and Tobago at reasonable prices much lower than the prevailing prices in the spot market, thanks to the long-term contracts signed by KPC with major producers, including the agreement with Qatar Energy Company to import 3 million tons/year of LNG for 15 years. He explained that such contracts guarantee the provision of safe, reliable, and sustainable supplies to the State of Kuwait, as well as secure revenues for the exporting countries to ensure the continued pumping of investments in the development of the gas sector to comply with the contractual quantities. Noting that the cost of the cargo of an LNG tanker (170,000 cubic meters) reached 140 million dollars in the spot market due to the sharp rise in prices. In contrast, its cost in long-term contracts is estimated at 35 million dollars, which means savings of tens of millions of dollars per month for the State of Kuwait.