In Moscow, Gazprom and KOGAS have agreed on close cooperation in the field of liquefied natural gas supplies to Korea.
The JV Uz-Kor Gas Chemical in October will complete the construction of the Ustyurt gas chemicals complex in the Karakalpakistan, Uzbekistan, the chief specialist of the department of the uniform technical policy of Uzbekneftegas, S. Berdyev, said.
The complex will be launched in mid October. The Ustyurt gas chemicals complex will become the largest enterprise in the gas chemicals sector in the Central Asia.
In February 2008 Uzbekneftegas and a consortium from Korea Kor-Uz Gas Chemical Investment founded on the parity basis the JV Kor-Uz Gas Chemical Investment for the construction of the Ustyurt gas chemicals complex on the basis of the Surgil deposit. Currently the consortium comprises Kogas, Lotte and STX Energy.
“Uzbekneftegas” and foreign investors will start the projects with the total value of $7.1 bln in 2015.
The program approved by the order of the President of Uzbekistan, I. Karimov, comprises 39 projects on modernization, technical and technological renewal of production in the oil and gas sector. In the structure of sources of capital investment foreign investment and loans make up $5.1 bln, company’s own funds - $1.14 bln, loans issued by the Reconstruction and Development Fund of Uzbekistan - $543.8 mln, loans issued by Uzbek banks - $313.7 mln.
In 2015 Lukoil will start the active stage of the project on the construction of a gas processing plant and development of the Kandym group of deposits in the Bukhara region with the value of $2.66 bln. The gas processing plant with the capacity of 8.1 bln cubic m of gas a year is planned to be constructed in 2019.
Uzbekneftegas and CNPC will start the construction of the 4th stage of the Uzbek part o the “Central Asia-China” gas pipeline with the total value of $800 mln. The gas pipeline with the capacity of 20 bln cubic m of gas is planned to be put into operation in 2017.
LNG price by contract of Sakhalin Energy and Kogas in 2014 rose after cancellation of price restrictionsEdited by Rhod Mackenzie / 2015-02-04 03:10:51
The LNG price by the contract between Sakhalin Energy and Kogas (South Korea) in 2014 rose significantly after the cancellation of the price restriction. This is the assessment of the National Energy Safety Fund.
In the mid 2000s Kogas signed a long-term agreement with Sakhalin Energy for the purchase of 1.5 mln tons of LNG a year from Sakhalin-2 project, with an option for the additional 0.5 mln tons. The average price by this agreement didn’t exceed $200 per ton from the moment of the start of supplies in late 2009. The additional volumes by the contract were shipped at high market prices peculiar for APR for the past years (higher average price at certain months is explained by that).
“A low price was stated in a 5-year contract. Both the supplier and buyer gained the right to bring it to the market conditions if they significantly differ. By our assessment, Sakhalin Energy was $3.5-4 bln short of net profit from the gas supply at a fixed price”, analysts of National Energy Safety Fund say.
Launch of a gas chemical complex will provide annual production of 4.5 billion cubic meters of natural gas, 387 thousand tons of high density polyethylene, 83 thousand tons of polypropylene, about 100 thousand tons of pyrolysis gasoline from2016. In addition, more than a thousand new jobs will appear at the complex.
In the medium term, Korean gas corporation (Kogas) won’t be involved in a new project to produce liquefied natural gas (in Uzbekistan, a source close to the company told the RIA Novosti on Wednesday.
"Intensive negotiations were held with the Uzbek side, taking into account existing projects Kogas has no plans to expand their list," - said the agency interlocutor.
The price is $390 per 1,000 cubic m for Japan and $150 per 1,000 cubic m for South Korea, compared to $400 per 1,000 cubic m for pipeline gas for the Ukraine. Other producers sell it there at a higher price. Indonesian gas was sold by $640 per 1,000 cubic m tor Japan and $600 per 1,000 cubic m for South Korea. It means that Russia sells gas by 1.6 times cheaper than the market price to Japan and by 4 times cheaper to South Korea.
The Government of Uzbekistan and South Korean Korea Gas Corporation (Kogas) signed a direct agreement on a construction of the Ustyrtsky gas chemical combine on the north-west of Uzbekistan at $3.9 billion, the source in the fuel-and-energy company of the Cabinet of Ministers of the republic said.
“The direct agreement contains a supplementary protection of the interest of the creditors and investors of the project,” the source stated. In particular, the structure and hedging rate have been agreed, the terms of replacement of the participants and compensation on an exit has been regulated.
The will be companies from China and South Korea will help it to develop the Arctic shelf.
Rosneft has found new partners among the Asian companies. Over the last few days the head of Rosneft, I. Sechin, has managed to visit 2 countries –South Korea and China where he held negotiations with the 5 largest Oil and Gas companies in the region. The main result was the signing of the agreement with the Chinese companies on their joint work at the shelf of the Pechora and Barents Seas. Analysts assess positively this possible cooperation and say Rosneft will open a new market for hydrocarbons sales for itself on the account of new partners and accelerate the process of the shelf development.
The companies from China and South Korea will help it to develop the shelf. Read more »