January sales of new passenger cars in Russia grow 77.3% YoY to 80,212 units

Sales of new passenger cars in Russia in January 2024 increased 77.3% YoY versus last year's "low base" to 80,212 units, the analytical agency Autostat said, citing data from Passport Industrial Consulting JSC, as per Interfax.

The market leader is still the Russian Lada, whose sales last month increased 26.4% to 22,289 units, and its share decreased by 11.2 percentage points, to 27.8%.

Second place and first among foreign cars belongs to Chinese brand Haval, with 9,620 cars sold in January. Next are seven more brands from China: Geely (8,998 units), Chery (8,801 units), Changan (4,893 units), Exeed (2,758 units), Omoda (2,668 units), Lixiang (1,741 units) and Tank (1,733 units). All these brands showed annuals.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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The 13th package of EU sanctions against Russia may limit the travel of Russian diplomats in EU member states, as per Interfax.

"Another idea being floated is to limit the travel of Russian diplomats to the country where they are accredited, instead of to the whole Schengen area. The proposal is a longstanding request from the Czech Republic," Politico said, citing an unnamed European diplomat as its source.

According to a Radio Poland correspondent in Brussels, the 13th package could sanction almost 250 people and companies. "Currently, the list consists of almost 2,000 people, companies, and entities. Besides adding another 250 people and companies, the new sanctions package is also due to ban trade with companies circumventing the arms embargo on Russia," it said.

"The 13th package will impose individual sanctions rather than sectoral ones. This is about blacklisting people and companies, banning them from travel to the European Union, and blocking their assets," Radio Poland said on Monday.

"Together with the three Baltic states, Poland has called for more ambitious sanctions. The Four's proposals include a ban on LNG and aluminum imports, but these restrictions will not be included in the 13th package," it said.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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Turkish construction contractor Ronesans Holding has announced that it has wound down its operations in Russia after 30 years of doing business in the country, where it was one of the top ten contractors in the oil and gas sector, said Interfax.

The group started its business in St. Petersburg in 1993 and subsequently significantly expanded its presence in Russia.

"In Russia, Ronesans divested its construction business in May 2022 and its real estate business in June 2023, redirecting investment and attention to diverse locations worldwide. This transition and the strategic decision to pivot away from direct management in that market has transformed Ronesans' growth strategy. The group's global footprint now extends to various regions, anchored in Turkey and spanning the Netherlands, Germany and CIS countries, with a growing focus on Kazakhstan and Turkmenistan," the group said in a press release.

The Russian legal entities of JSC Ronesans Construction in Moscow and St. Petersburg have been renamed JSC Rencons and Ronesans Heavy Industries has been renamed Rencons Heavy Industries. Ronesans said it expects to end 2023 with revenue up 10% to 3.3 billion euros and is targeting turnover of 4.5 billion euros in 2024.

Ronesans also plans to take "its first step towards opening to the public" this year with the announcement of an IPO for Ronesans Real Estate Investment. "This IPO will be the first of potentially many others, as momentum grows for Ronesans Group," the press release said.

The group's Russian portfolio included industrial facilities and major mixed-use real estate projects such as Gazprom's Lakhta Center in St. Petersburg and the Federation, Neva Towers and iCity skyscrapers in Moscow.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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Tecnimont has been awarded a FEED contract by MadoquaPower2X to develop an integrated green hydrogen and green ammonia plant located in the industrial zone of Sines, Portugal. MadoquaPower2x is a consortium comprised of Madoqua Renewables, Power2X and Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund, as per Hydrocarbonprocessing.

The project involves the production of green hydrogen using alkaline-water electrolyzer technology and production of green ammonia through the Haber-Bosch process. Green ammonia will be transported by pipeline to the Port of Sines and loaded for export and/or used as maritime fuel.

Tecnimont’s scope of work entails the design of the electrolyzers’ integration, air separation unit for nitrogen production, ammonia production plant, as well as storage and ship loading facilities. As part of the agreement, Tecnimont will also submit an Engineering, Procurement and Construction proposal for the construction activities of the plant. The Final Notice to Proceed is expected by 22 March 2024.

This award follows a PRE-FEED carried out by NextChem Tech, MAIRE’s Sustainable Technology Solutions subsidiary and is further proof of the synergies and cross-fertilization at the base of MAIRE’s positioning as a leading Integrated Technology and E&C solutions provider. As such, Tecnimont will provide its EPC expertise leveraging on NextChem Tech’s technological competences for hydrogen production and storage.

MadoquaPower2X will use renewable energy generated by solar and wind assets under development in Portugal and up to 500 MWs of electrolysis capacity to produce up to 1,200 MTPD of green ammonia. It will be the first facility in Sines, the largest industrial and logistic hub in the Iberian Peninsula, to produce clean energy at an industrial scale and with the highest environmental and safety standards. The project is geared towards the set-up of an export energy carrier value chain between the Port of Sines (Portugal) and Northwestern European Hub.

We remind, MAIRE announces that Tecnimont has been awarded a FEED contract by Fortescue, a global green technology, energy and metals company, for a green ammonia plant to be located in the Nordgulen fjord in Norway.

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Warm weather is helping Europe conserve fuel. However, gas reserves in the region's storage facilities have fallen below the 70% milestone, said Interfax.

The Ukrainian GTS Operator (OGTSU) accepted an order from Gazprom on Monday to transport 42.1 mcm of gas, the Ukrainian company reported. The Sunday order was for 40 mcm. The number applies to one of two entry points into the country's gas transportation system, the Sudzha gas measuring station. The order for transport via the Sokhranovka GIS was not accepted.

Gazprom representative Sergei Kupriyanov told reporters "Gazprom is shipping Russian gas for transit via Ukraine on February 5 in confirmed volumes of 42.3 mcm via the Sudzha GIS. The order for the Sokhranovka GIS was rejected."

OGTSU declared force majeure with regard to gas transit via Sokhranovka, since it allegedly cannot exercise operational and technological control over the Novopskov compressor station. The route through Sokhranovka used to provide transit to over 30 mcm of gas per day. Gazprom believes there are no grounds for force majeure, and no obstacles to continuing to operate as before.

Although January 2024 was actually more temperate than preliminary forecasts had suggested, the average temperature was still 2 degrees colder than the previous year. The current weather forecast for February promises temperatures one degree higher than the climate norm, at the same level as February last year.

The spot price of gas in Europe remained almost unchanged on Friday. The contract for day-ahead delivery at the TTF hub in the Netherlands closed at $321 per thousand cu. m.

Wind generation in Europe has provided an average of 25% of the region's electricity needs since the beginning of February, the WindEurope association said. Last February, wind power plants contributed 16%, while last month the figure was 22%.

There is a noticeable gap in LNG prices in Asia compared to Europe. March futures for the JKM Platts index (the Japan Korea Marker, which reflects the spot market value of cargo delivered to Japan, South Korea, China and Taiwan) are trading at $338, while futures for LNG supplied to NW Europe (LNG North West Europe Marker) are at $302.

Natural gas reserve levels in Europe are one of the key indicators for the global market.

The current figure is 69.14%, 14 percentage points above the average for the same dates over the past five years, Gas Infrastructure Europe said. Although Europe is actively limiting the use of gas and its reserves, the current level of reserves is noticeably lower than the same dates in 2023 and 2020 (the GIE database contains observational data since 2011).

During the February 3 gas day (a day off), reserves decreased 0.18 percentage points. Since the latter part of January, amid warmer weather conditions, selection intensity has been significantly lower than the average for the last five years.

European LNG terminals operated at an average productivity of 51% in January 2023; since the beginning of February, their average load has been 47%.

The state of reserves in American underground gas storage facilities is becoming increasingly important as the country actively increases exports. The United States continues to withdraw gas from its storage facilities. In the latest reporting week, gas reserves fell 5.6 bcm, a third more than usual at this time of year. Reserves in the US are currently at 55%, which is very close (a difference of only +2 percentage points) to the average for the last five years, the Energy Information Administration said.

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