Musings From Abroad

Russia’s Sibur targets African, Asian, other gas markets as EU boycott bites hard

Published

2 years ago

April 6, 2023

Following sanctions and boycotts by the European Union on Russia over the invasion of Ukraine, Russia has continued moves to source alternate markets for its gas.

Russia’s largest producer and exporter of liquefied petroleum gas (LPG), Sibur has redirected exports to Africa, the Middle East, and Asia in the past three months.

The company’s deliveries of LPG from Russia’s Baltic port of Ust-Luga to EU countries and the UK in the first quarter of 2023 slid to 14-15% of the total, or 33,000 tonnes, against 82%, or 194,000 tonnes.

Its shipments to Africa, the Middle East, and Asia-Pacific, meanwhile, accounted for about 85-86%, or 192,000 tonnes, of total shipments amounting to 225,000 tonnes.

Although Sibur has declined comment about the development, one of the traders revealed that “most buyers in Europe abandoned Sibur’s LPG, so the company was forced to look for new distribution channels.”

The LPG trader also revealed that Sibur LPG cargoes arriving from Ust-Luga are being sold to Trafigura, which reloads them at Paldiski to MGC (medium gas carriers, about 22,000 tonnes) or LGC (large gas carriers, 44,000 tonnes) vessels.

Trafigura on its part said it “continues to engage with customers and governments to understand their requirements and provide the commodities and energy they need in severely disrupted commodities markets”.

Russia’s assault on Ukraine has roiled global energy markets and turned the climate policy conversation upside down.

African countries have benefitted from the boycott of Russian gas as some EU countries turn to African countries for gas. In April 2022, Algeria and Italy announced a gas deal worth billions of dollars which saw the European country reducing its heavy reliance on Russian imports amid the raging Ukrainian invasion which has led to a plethora of sanctions.

The deputy director general of the European Commission’s energy department, Matthew Baldwin, had also hinted that the continental bloc which imports 14% of its total LNG supplies from Nigeria was exploring options to double the supplies.

Related Topics:Featured gas Russia Russia's Sibur

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Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.

Musings From Abroad

Blinken to reveal UN Sudan funding additions

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

Additional financing for humanitarian aid to Sudan and initiatives to strengthen civil society in the nation, where a conflict has killed tens of thousands of people and displaced millions, will be announced by U.S. Secretary of State Antony Blinken at the United Nations on Thursday.

Blinken will make many announcements when he leads a UN Security Council meeting on Sudan on Thursday, which will centre on humanitarian aid and civilian protection, Deputy U.S. Representative to the UN Ned Price told reporters on Wednesday.

According to Price, the announcements would include more money for humanitarian help, initiatives to strengthen civil society, and the return of democracy.

“Sudan, unfortunately, has risked becoming a forgotten conflict,” Price said.

“So part of the reason the secretary … opted to convene a signature event on this very topic is to make sure it remains in the spotlight,” Price said.

For almost 18 months, the paramilitary Rapid Support Forces and Sudan’s army have been engaged in combat, resulting in a severe humanitarian crisis that has forced over 12 million people from their homes and made it difficult for U.N. organisations to provide aid.

A power struggle between the RSF and the Sudanese Armed Forces preceded a planned shift to civilian administration, which sparked the conflict in April 2023.

Although the army declined to join this year’s U.S.-mediated peace negotiations in Geneva, the warring parties did pledge to increase assistance access, which prevented any movement towards a ceasefire.

Price stated that before President Joe Biden’s term ends next month, the United States would keep collaborating with allies to enhance humanitarian access in Sudan and eventually end hostilities.

“We are going to leave nothing on the field in our efforts to work with allies, with partners, with the Sudanese stakeholders themselves, on the issues that matter most – humanitarian access, the provision of humanitarian assistance, ultimately, the process by which we can work to get to a cessation of hostilities, which is most urgently needed,” he said.