The UAE, the company’s largest market, saw high growth in merchant payments processed from domestic consumers at 20 per cent year on year, and payments from international visitors growing 92 per cent
The Nord Stream 1 pipeline that transports gas from Russia to Germany will undergo planned maintenance from Monday, cutting gas supplies to Europe and raising concerns about a prolonged halt to supply.
Russia has already reduced production to 40 per cent of the pipeline's capacity, which has helped to push up European and British gas prices. Benchmark contracts are trading around 350 per cent -400 per cent higher than this time last year.
Below are some of the factors explaining the impact of Russian supplies on Europe's gas markets, including those that do not rely on Russian gas directly.
Europe has historically relied on Russia for around 40 per cent of its natural gas, most delivered through pipelines including Yamal, which crosses Belarus and Poland to Germany, Nord Stream 1, which runs directly to Germany, and pipelines through Ukraine.
A network of interconnecting pipelines links Europe’s internal gas markets.
Not all countries get gas directly from Russia, but if countries such as Germany, Europe's top buyer of Russian gas, receive less, they must fill the gap from elsewhere, for instance from Norway, which has a knock-on effect on available gas for other countries.
As a result, changes in Russian supplies can cause as much gas price volatility in Britain as the rest of Europe, even though Britain typically gets less than 4% of its gas from Russia. Lower Russian supply means less could be available from its largest supplier Norway.
Russian gas flows to Europe have already fallen in the first half of 2022, with flows through the three main pipeline routes down around 50 per cent compared with the first half of 2021.
Flows through Yamal, which historically transported gas from Russia to Europe have been flowing eastwards, to Poland from Germany since the start of the year.
ALSO READ:
Flows through Nord Stream and via Ukraine, which were already down on last year, began falling in March after Russia’s attack on Ukraine.
This year, Moscow has cut gas flows to Bulgaria, Finland, Poland, Danish supplier Orsted, Dutch firm Gasterra and Shell for its German contracts, after they all rejected a Kremlin demand to switch to payments in roubles.
Several companies such as Germany’s Uniper and RWE and Italy’s Eni made payments under Russia’s new scheme and continued to receive gas.
But many companies, including Uniper and RWE have since seen their supply curbed after Russia cut the capacity of the Nord Stream 1 pipeline.
While Italian Prime Minister Mario Draghi accused Moscow of using its gas supplies for political reasons, Russia said supply reductions were necessary because of the delayed return of equipment that had been sent for repair.
Germany’s Economy Minister Robert Habeck said Moscow could continue to suspend gas flows through the pipeline beyond the planned maintenance shutdown in an effort to destabilise Europe.
The Nord Stream cut has driven up European and British gas prices, which analysts said could rise further if flows do not return after the maintenance that is scheduled to end on July 21.
The European Union aims to end reliance on Russian fossil fuels by 2027 and has begun looking for alternatives, such as by increasing imports of global liquefied natural gas (LNG).
European imports of LNG rose about 56 per cent in the first half of 2022 compared with the same period in 2021, Refinitiv data showed, reflecting more capacity in the United States and high prices in Europe attracting more cargoes.
But Europe has limited capacity to receive LNG and supply concerns deepened after production was halted at a major US export plant owned by Freeport LNG following an explosion.
Freeport said late last month it hopes to resume operations in part in early October with a return to full production by year-end but it will first have to satisfy the regulator it is safe to do so.
The UAE, the company’s largest market, saw high growth in merchant payments processed from domestic consumers at 20 per cent year on year, and payments from international visitors growing 92 per cent
The company's strong balance sheet will support the company’s growth strategy, including investments in digital and technological infrastructure as well as its active merger and acquisition pipeline
The company’s revenue increased 31 per cent to Dh1.041 billion as compared to Dh792 million in first half of 2021 while its operating costs dropped 16 per cent
Kashkari sticks to his view of 3.9% Fed funds rate at end-2022; Evans sees 3.4% policy rate this year; Both push back on market expectation for rate cuts next year; Inflation, employment data to determine size of Sept rate hike
Approval would save time, money on Asian routes; Q2 net profit $100m versus loss of $81m a year ago; Revenue up sharply, but still below Q2 in 2019
The transaction includes solar power projects in Turkey’s Karapanar and Gaziantep regions and a wind power project in Ankara
The five-year contract was awarded by Adnoc Offshore to Adnoc Logistics and Services (Adnoc L&S) and underpins the world-class capabilities within Adnoc’s group companies
Offering could be part of govt announcement to list 10 entities on local stock market