NATO: Russia funding anti-fracking groups

Russian intelligence agencies are covertly funding and working with European environmental groups to campaign against fracking and maintain EU dependence on Russian gas, the head of Nato has claimed.

Answering questions after a speech in London, Anders Fogh Rasmussen, Nato secretary-general, said improving European energy security was of the “utmost importance” and accused Moscow of “blackmail” in its dealings with Europe.

“I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organisations – environmental organisations working against shale gas – to maintain European dependence on imported Russian gas,” Mr Rasmussen, former Danish prime minister, told an audience at Chatham House, the international affairs think-tank.

Mr Rasmussen did not detail the nature of his suspicions about Russian involvement with environmental groups.

The 28-nation EU bloc depends on Russia for about a third of its oil and gas needs.

Shale gas enthusiasts want curb the EU’s high dependence on Russian imports.

A Nato official, speaking on condition of anonymity, told the Financial Times that  “some allies worry that Russia could try to obstruct possible projects on shale gas exploration in Europe in order to maintain Europe’s reliance on Russian gas.”

Royal Dutch Shell last year struck a production-sharing agreement to develop the Yuzuvska field, which spans 8,000 square kilometres in and around Donetsk.

Denis Pushilin, from the Donetsk People’s Republic organised rallies against shale gas exploration in Donetsk. In May, Mr Pushilin said the Donetsk People’s Republic had banned the extraction of shale gas in territory it controlled in eastern Ukraine.

Protests against fracking have been held in Bulgaria and Romania but green groups in both countries have angrily rejected charges that they are puppets and dismiss the idea of Russia’s influence as a conspiracy theory.

Romania’s president, Traian Basescu, suggested that Russia was playing a role in trying to thwart Chevron’s shale gas development near the village of Pungesti.

Environmentalists reject the charges and accuse the Romanian police of acting as a private security force for Chevron.

Demonstrators have vented their outrage about the danger that shale development would pose to drinking water and geological faults.

Source: FT

Sasol to challenge Shell on Karoo shale gas

karooSouth African petrochemicals group Sasol Ltd is keen to invest in a domestic shale industry once it gets off the ground, its chief executive said, in a potential challenge to oil major Royal Dutch Shell.

South Africa’s cabinet proposed new regulations to govern exploration for shale gas late last year after it lifted a 2012 moratorium on the activity in the central Karoo region.

Fracking in the region might tap what is believed to be some of the world’s biggest reserves of the energy source and the government wants to develop an industry that it sees as a potential game-changer in Africa’s largest economy.

“I am very excited because of the technologies we can bring to the table. We’ve got shale gas upstream experience in British Columbia,” Sasol Chief Executive David Constable said on Monday.

“We want to get involved and participate and monetize that gas in country with gas to liquid, gas to power, gas to chemicals,” he said after the group posted a 26 percent rise in half-year earnings.

Shell has applied for an exploration licence and once all of the new regulations are in place it is expected to be near the front of the line.

Constable said Sasol wanted to take part. “We are really interested in what is going in the Shell block and would love to farm in or take a piece of it. Shell is issuing profit warnings and pulling back capex right now,” he said.

Shell said in January that it planned to cut capital spending to $37 billion this year from $46 billion in 2013, following a profit warning.

Shell was not immediately available to comment on Monday.

Constable said the government should take Shell’s strategy into account.

South Africa’s Public Investment Corporation (PIC), which is Sasol’s biggest shareholder with a 13 percent stake in the company and manages 1.4 trillion rand ($130.3 billion) in civil servant retirement funds, has also said it wants a big slice of the shale pie.

Fracking involves pumping pressurised water, chemicals and sand underground to release gas trapped in shale formations and the prospect of it occurring in the semi-arid and sparsely-populated Karoo region, known for its big skies and scenery, has raised concerns anong conservationists.

Constable said Sasol’s experience in British Columbia would enable the company to carry out the process “in an environmentally friendly fashion.”

Source: Reuters

Ukraine signs $10 billion fracking deal with Chevron

 

chevronUkraine signed a $10 billion shale gas production-sharing agreement with U.S. Chevron on Tuesday, another step in a drive for more energy independence from Russia.

The deal to develop its western Olesska field followed a similar shale gas agreement with Royal Dutch Shell in January and boosts Ukraine’s leadership at a time of fraught relations with Moscow over gas supplies.

“The agreements with Shell and Chevron … will enable us to have full sufficiency in gas by 2020 and, under an optimistic scenario, even enable us to export energy,” President Viktor Yanukovich told investors shortly before the signing.

The highest end of expectations for Olesska’s potential reserves would match around three years of European Union gas demand, but similarly sunny hopes for shale reserves in neighboring Poland have been very sharply downsized.

Source: Reuters