The situation in the energy sector as of 12:00 March 01

Highlights:

Address of Minister German Galushchenko to power engineers: you selflessly, fearlessly go to work to provide either gas or electricity respectively. Each of you performing your duties today is a hero!

Canada will completely abandon the purchase of Russian oil due to Russia's invasion of Ukraine

Shell has announced the abandonment of joint projects with Gazprom

• On March 1, 2022, all four nuclear power plants in Ukraine - Zaporizhia, Rivne, Khmelnytsky and Yuzhno-Ukrayinska - are operating normally. There are 9 power units in operation, and electricity generation is stable.
• As of 9:00 am, the current capacity of NNEGC Energoatom made up 7,175 MW. During the recent 24 hours, 172.05 million kWh of electricity were generated.
• There occur no violations of conditions of safe operation. Radiation, fire and environmental conditions at all NPPs and adjacent territories have not changed and are within current norms.
• The main equipment of the reactor compartments of power units, premises and buildings of power plants, the perimeters of protected areas and adjacent territories, as well as particularly important NPP facilities outside their protected areas – all those are under increased surveillance, - Energoatom.
• Shell has announced the abandonment of joint projects with Gazprom. The board of directors of the British oil and gas company Shell has decided to withdraw from all joint ventures established with Gazprom and related organizations. "We are shocked by the deaths of people in Ukraine whom we sympathize with as a result of a senseless act of military aggression that threatens European security. We cannot and will not stand aside," said Shell CEO Ben van Beurden. As of the end of 2021, Shell had about $3 billion in capital assets in Russia. Among them, 27.5% of the shares in the Sakhalin II oil and gas project, 50% at Salym Petroleum Development, which is developing the Salym Group of oil fields in West Siberia, and its stake in the Gidan Energy joint venture, which has licenses on the Gydan Peninsula in the Arctic. Shell also intends to end its participation in the Nord Stream 2 gas pipeline project.
• Ukrnafta has suspended the operation of two gas processing plants. Aimed to ensure the safety of employees, operation of two gas processing plants in Chernihiv and Sumy regions have been terminated, but the company continues to supply gas to settlements in the east of the country whose infrastructure depends on Ukrnafta. The shelling by the Russian occupation forces destroyed the company's infrastructure in Okhtyrka. One of the tanks serving as the storage for the oil residues was damaged. A fire broke out as a result of the shelling. The main oil storage tanks are damaged. We regret to report that four employees of the company were killed as a result of Russian aggression and shelling of Okhtyrka. Ukrnafta provided material assistance to their families. The company continues to meet its wage obligations. In addition, last week all employees were paid additional financial assistance in the amount of monthly earnings. Accommodation in Dolyna and Nadvirna was organized for workers and their families evacuated from the battlefields.
• Ukrnafta continues to produce oil and gas at all facilities, except those close to active hostilities.
• A Russian oil tanker has been subjected to US sanctions en route to Malaysia and is heading to Malaysia. The Linda tanker, mentioned in a US Treasury Department document detailing sanctions against Russia, was in the Indian Ocean and was due to arrive at the Sungai Linggi Port on Malaysia's west coast last Sunday. The Linda is owned by PSB Leasing, a division of Russia's lender Promzvyazokbank, which has also come under international sanctions.
• Canada will completely abandon the purchase of Russian oil due to Russia's invasion of Ukraine. The statement came from Canadian Prime Minister Justin Trudeau in Ottawa. "Today, we are announcing our intention to ban all imports of crude oil from Russia, an industry that has benefited President Putin and his oligarchs greatly," Trudeau said. Canada has some of the world's largest oil reserves, but due to shortcomings in its transportation system, it imports about half a billion dollars worth of oil a year from Russia.
• TotalEnergies will no longer provide capital for new projects in Russia - one of the largest joint projects of the Total were in Russia. Together with PJSC NOVATEK and Chinese partners TotalEnergies completed the construction of one of the world's largest natural gas liquefaction complexes Yamal LNG (50.1% in NOVATEK, 20% in TotalEnergies and CNPC, another 9.9% in Silk Road Foundation).

According to the Ministry of Energy, UkrEnergo, Naftogas Ukraine, Ukrainian GTS Operator.