• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 mins End of EV Subsidies?
  • 54 mins Maersk's COO statment.
  • 5 hours Citi cuts Apple's price target
  • 6 hours Asian stocks down
  • 1 hour Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 3 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 hours China Builds LNG Icebreaker
  • 4 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 2 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 11 hours Price Decline in Chinese Solar Panels
  • 12 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 3 hours Regular Gas dropped to $2.21 per gallon today
Permian Oil Reserves May Be Twice As Big As We Thought

Permian Oil Reserves May Be Twice As Big As We Thought

The U.S. Geological Survey has…

Why Fundamentals In Oil Markets Haven’t Changed

Why Fundamentals In Oil Markets Haven’t Changed

Neither the OPEC meeting not…

Russia’s Power Plant Plans In Crimea Hit Sanction Snag

Yalta

Russia’s plans to build two electricity plants in Crimea to provide power to the annexed peninsula are being derailed by the sanctions that the EU and the U.S. have imposed on Moscow over that very same annexation, Reuters reported on Thursday, quoting sources familiar with the plans.

The $1.3-billion project is to have two new high-tech plants in Crimea to ensure electricity supply to the residents who have been suffering power outages since the annexation. The plants have been partially built, but have been designed to operate with gas turbines made by a unit of Germany’s engineering group Siemens, according to Reuters’ sources.

However, Siemens – whose officials have always said that there were no plans to provide such turbines – risks violating the EU sanctions against Russia, which state that “goods and technology for the transport, telecommunications and energy sectors or the exploration of oil, gas and mineral resources may not be exported to Crimean companies or for use in Crimea.”

Earlier this month, Russian Energy Ministry Alexander Novak told Russia’s Parliament that “work is continuing despite problems related to the delivery of equipment from a Western company.”

“We are working on buying other equipment,” the minister said, without giving the name of the Western company in question.

Now the Russian project is facing delays because it has to either alter designs to accommodate other types of Russia-manufactured turbines, or try buying turbines from Iran, or use turbines from Western companies that are already in Russia, according to Reuters’ sources.

However, Russia has lost the capability to manufacture such turbines over the past two decades. If Moscow opts for Iran-sourced turbines, those would be either acquired from a big international company or built in Iran under license from one—this could make any big international firm reluctant to agree, because of potential violation of the sanctions. As for the third option of using West-made turbines, it would also require the manufacturer to send engineers to Russia, which would also breach the sanctions.

Related: Space Mining: The Final Frontier For Oil Countries

The company that is building the power stations, Technopromexport, is itself on the U.S. list of sanctions on Russian individuals and entities.

According to a Technopromexport spokesman who sent an emailed statement to Reuters, the timetable for the Crimea power plants would likely be pushed further, but it was not due to the turbines delivery.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Jean Hebert on April 29 2017 said:
    This is not a real problem since Russia makes many different large gas turbines. It's just a matter of adjusting the gearbox connection and redesigning the controls.
  • Naomi on April 28 2017 said:
    If Russia and Iran get adventurous then drop the oil price to $25/bbl again.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->