Greater Caspian Region Weekly Overview - October 23rd
Azerbaijan
Azerbaijan stops gas intake from Gazprom
Deputy Head of the State Oil Company of Azerbaijan Republic’s (SOCAR) Gas Export Department Kamal Abbasov informed Natural Gas Europe that Russian gas export to Azerbaijan would be stopped.
Abbasov said that Azerbaijan was to halt Russian gas intake at 00:00 (or 19:00 GMT) on October 20th.
SOCAR's Magistral Gas Pipelines Department told Natural Gas Europe earlier this month that Russia started delivery of 6 million cubic meters per day(mcm/d) of gas to Azerbaijan on September 29th to be supplied to Azerbaijan Methanol Company (AzMeCo).
Abbasov said over the past 22 days less than 5 mcm/d of Russian gas was delivered to Azerbaijan. Total volume reached 100 mcm.
Turkmenistan
Japan eyes signing more than $12B in investment projects in Central Asia
Japanese Prime Minister Shinzo Abe on October 22th left for a week-long tour to Mongolia and five Central Asian nations, eyeing billions of dollars in business deals as China boosts its influence in the resource-rich region.
The conservative leader, who has been pushing to kick-start the world's number three economy, was accompanied by representatives of approximately 50 Japanese firms.
He will later travel to Kazakhstan and Uzbekistan, and make the first-ever official visit by a Japanese premier to Turkmenistan, Tajikistan and Kyrgyzstan.
During the tour, Japanese engineering firm JGC and four other companies are expected to sign a one trillion yen (S$11.6 billion) deal in Turkmenistan for the construction of a plant linked to natural gas fields, the leading Nikkei business daily said.
Iran
Iran needs $100 billion to realize 5-year National Plan
Iran needs $100 billion to realize its 5-year National-Plan (2016-2021), aimed at increasing gas production to 1.325 billion cubic meters per day along with crude oil and condensate to 5.7 million barrels per day, Shana quoted Abdol Mohammad Delparish, Director of Corporate Planning at National Iranian Oil Company on October 22.
Iran’s enriched and sweet gas production “capacity” stands at 700 million cubic meters per day (mcm/d) and 550 mcm/d. Iran produced about 85 billion cubic meters of sweet gas in the first half of current fiscal year, commencing March 22.
South Pars gas field shares 54 percent of total sweet gas output, producing 252 mcm/d in first half of current fiscal year. The enriched gas production capacity of this field reached 390 mcm/d, while the figure is projected to double by 2019.
Flared gas amount at South Pars decreased by 45 percent to 220 mcm in this period, year-to-year.
Iran invested $9 billion during the last two years in South Pars, which holds 14 trillion cubic meters of gas reserves. Iran has produced 812 bcm of enriched gas from South Pars so far.
Iran’s total gas reserves stands at 33.8 trillion cubic meters.
Iran plans to barter more gas with Armenian power
Iran planned to increase the gas export to Armenia by 2017.
Armenia’s Energy and Natural Resources Deputy Minister Hayk Harutyunyan told Radio Liberty that Yerevan and Tehran have signed a $120 million contract on the construction of the 3rd electrical transmission line (ELP), of which about 80 percent of investment would be put by Iran. 3rd ELP is expected to become operational in 18 months.
According to the Deputy Minister, the third line will allow an increase in the volume of the transaction “gas in exchange for electricity.”
In 2014, Armenia imported 383 mcm from Iran and 2.109 bcm from Russia.
Iran and Armenia started gas-to-power deal in 2009 for 20 years.
Iran plans to enter LNG markets by 2019
Iran’s Oil Minister Bijan Namdar Zanganeh announced on October 20th that Iran is preparing to enter global LNG markets with supplying 10 million metric tons of liquefied natural gas annually.
According to Shana, Zanganeh said that during three years after an elimination of sanctions, Iran reread to supply LNG.
Iran has an LNG plant, 50 percent developed by Iran LNG however development of project has been halted due to sanctions. Iran has put $2.5 billion investment in this project and more $2.5 billion is needed to be completed. Iran is negotiating with German Linde Company to resume the project. It’s expected the sanctions on Iran be eliminated in the first half of 2016.