Greater Caspian Region Weekly Overview - August 9th
Iran
Iran produced 10.7 bcm from new operational South Pars phases
Iran announced on August 8th that it has produced about 10.7 billion cubic meters (bcm) of sweet gas from the phases 15, 17 and 18 so far. These phases have been operational since last year at half production capacity.
Each of These phases would produce 25 million cubic meters per day (mcm/d) of gas after become fully operational.
Iran produces about 300 mcm/d of sweet gas from South Pars, which equals 72 percent of Iran’s total refined gas production, while additional 100 mcm/d of gas production is projected by March 2016.
Iran planned to commence phase 19 of South Pars with half capacity by March 20. Phase 12 also would become fully operational during this period to produce 84 mcm/d of gas.
Iran eyeing co-op ways with SOCAR in gas export
Head of the National Iranian Gas Export Company (NIGEC) said on August 5th that that this country is searching for ways to cooperate with Azerbaijan on the gas export issue.
During the Azerbaijani delegation visit to Iran, headed by Economy Minister Shahin Mustafayev, some top officials of The State Oil Company of Azerbaijan Republic (SOCAR) also met with Iran’s Oil Minister Bijan Namdar Zanganeh. Kameli said that Iran is studying gas export cooperation with Azerbaijan, such as increasing gas swap. The sides swap 1 to 1.2 mcm/d of gas, but regarding this fact that Azerbaijan’s gas consumption in winters decline, while Iran’s consumption is in pick level, the sides are eying that as a new cooperation opportunity.
Iran's gas consumption in its housing sector (91 bcm/a), which shares above 50 percent of total gas usage, triples in winter.
Neither Iranian nor Azerbaijani officials made statements on Iran’s plan to join the Southern Gas Corridor in terms of supplying gas to Europe.
Azerbaijan also has two gas storage facilities with a 2 bcm/a free capacity to be used by Iran, but Iranian officials have yet to make a decision.
Iran to add 2 million houses to gas grid in 3 years
Iran planned to add more two million households to gas network in three years, the advisor of Iran’s Oil Minister stated on August 5th.
Iran’s refined gas consumption reached about 175 bcm in last fiscal year, ended on March 20, while the housing sector consumed 91 bcm of that. Currently, about 83 percent of Iranian families access to natural gas. Some 19 million Iranian households access gas, while Iran announced that some $2 billion will be allocated to construct new pipelines to supply the remained families with natural gas.
Azerbaijan
Azerbaijan gas production decreases
Azerbaijan’s gas production decreased above 0.711 bcm in the first half of 2015, compared to the same period in last year, due to a decrease in SOCARs gas production.
According to a monthly report released by SOCAR the country’s total gas production level decreased from 15.39 bcm in 1H14 to 14.68 bcm in 1H15.
SOCAR produced 3.373 bcm during this period, while this figure was 3.821 bcm in 1H14.
It seems the country’s total gas production decreased due to decline in SOCAR’s output. Azerbaijan’s major gas production come from Shah Deniz (9.9 bcm/a) and the associated gas of Azeri-Chirag-Guneshli oil fields, both are operated by BP.
The production level is expected to plunge in August, because BP announced that the production from the Shah Deniz platform was suspended on August 2nd and will last approximately 20 days.
EBRD, ADB confirm $1 billion financing package for SD2
LUKoil has signed a deal for a syndicated loan worth $1 billion with the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD), with the participation of the Black Sea Trade and Development Bank (BSTDB).
EBRD and ADB allocated $250 million loan each one, while BSTDB obliged to issue $60 million.
According to detailed information obtained by Natural Gas Europe on August 7th from sources at the ceremony of the signing contract at the Marriott Absheron Hotel in Baku, the remaining $440 million loan also will be issued by a syndicate of banks for 10 years by French Société Générale Bank, Bank of China, Dutch ING Bank and Italian UniCredit with the mediation of the EBRD and the ADB through the ‘B Loan Program’.
SOCAR drilling new gas well in Caspian Sea
SOCAR started drilling a new gas well in depth of 6,200 m on “Bulla Deniz” in Caspian Sea, the company’s official website reported on August 6th. The well will produce 0.8 mcm/d of gas
The Bulla-Deniz offshore field is located at 80 kilometers south of Baku, and it was opened in 1975. During this time, over 61 bcm of gas was produced at the field.
Turkmenistan
TurkmenGaz to lead TAPI consortium
Turkmenistan's state-owned TurkmenGaz would lead a consortium that would lay the TAPI gas pipeline from the central Asian country to India via Afghanistan and Pakistan, the oil ministry said in a statement on August 6th.The 1800-km pipeline will transfer 33 bcm/a of Turkmen gas to these countries. The cost of the project is expected to stand above $10 billion.
Construction of TAPI will start in December 2015.
Turkmenistan, Kyrgyzstan to build new pipelines
Ashgabat and Bishkek discussed the construction of Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China gas pipeline.
Turkmen President Gurbanguly Berdimuhamedov visited Kyrgyzstan and discussed the bilateral ties with his Kyrgyz counterpart Almazbek Atambayev on August 5th.
China National Petroleum Corporation has started purchasing gas from Central Asia since 2009 after the commissioning of first two branches (A and B) from Turkmenistan through Uzbekistan and Kazakhstan. The third branch (C) running on this route has been commissioned recently.
Currently, work is underway to construct the additional fourth branch (D) on the new route through Uzbekistan, Tajikistan and Kyrgyzstan.
Uzbekistan
Uzbekistan completes construction of large chemical complex
Completion of Ustyurt Gas Chemical Complex (GCC) construction in Uzbekistan is scheduled for September 2015, Ambassador of the Republic of Korea to Uzbekistan Lee Wook-heon said in an interview with the Uzbek National News Agency (UzA) on August 5th.
According to Trend, He said that the joint construction of Ustyurt GCC on the base of the Surgil field worth $4 billion is one example of fruitful Uzbek-Korean cooperation.
The complex will annually process 4.5 billion cubic meters of natural gas and produce up to 4 billion cubic meters of marketable gas, 387,000 metric tons of polyethylene, 83,000 metric tons polypropylene and 102,000 metric tons of pyrolysis gasoline.
The project is financed through the investments of founders of the joint venture and credit resources of commercial banks in Asia, Europe and Uzbekistan in the amount of $2.54 billion.
Kazakhstan
KazMunaiGas has sold over 58 mln common shares
Kazakh national oil and gas company “KazMunaiGas” has sold 58,420,748 common shares, according to the website of the Kazakh Stock Exchange.
The transaction was implemented by the British trading at the Kazakh Stock Exchange.
The deal amounted to 750 billion tenge ($3.99 billion) although the starting price was 749.98 billion tenge.
In line with the government decree, Kazakh National Welfare Fund “Samruk-Kazyna”, which owns a 100 percent stake in KazMunaiGas plans to sell 10 percent plus one common share of the company to the National Bank of Kazakhstan.
KazMunaiGas is Kazakh national operator for exploration, production, refining and transportation of hydrocarbons