Energy Blast – October 1, 2009

Naftogaz Ukrainy apparently intends to pay the interest due on its debts, to avoid default on its eurobonds which mature today.  ‘With its debt considered quasi-sovereign, a default by Naftogaz would be a first for a sovereign company in eastern Europe this year‘ says the FT.  Ukraine will break its bailout promise to the IMF and not raise natural gas prices for households.  Lukoil and Rosneft may consider buying more assets from Total.  Poland says that Russia canceled this month’s talks regarding gas; the EU member hopes to reach a gas deal soon for 2010 and beyond.  A candidate to the post of the Greek prime minister has said that were he elected he would seek better terms for the Burgas-Alexandroupolis oil pipeline project, particularly in regards to ‘environmental protection’.  Gazprom is apparently planning to fortify its standing in North American gas and electric power markets.  The Wall Street Journal reports that US President Barack Obama wants greater cooperation with Russia on energy issues in the Caspian and Black Sea areas.  The Governor of Murmansk says it is a technological imperative that Russia develop the Shtokman field in the Barents Sea with cooperation from foreign partners.