Baku-Tbilisi-Ceyhan, Russia Oil and Gas
“Transneft” suggests Russia create new grade of oil Urals Heavy with 2.3% of sulfur content in order to improve the quality of export blend crude oil Urals. I.Katsal, director for planning and traffic flow recording department of “Transneft” said.
Application of Azerbaijan for pumping oil through the Baku-Novorossiysk pipeline in 2016 was only 1.4 million tons.Edited by Rhod Mackenzie / 2015-11-02 05:22:00
Application of SOCAR for pumping oil through the main oil pipeline Baku-Novorossiysk in 2016 was 1.4 million tons, the presidential adviser of Transneft I.Demin sadly stated on October 30, 2015.
In 2015 pumping of Azeri oil through the main oil pipeline Baku - Novorossiysk is expected in the amount of 1.44 million tons, which corresponds to the level of 2015.
Moscow continues to oppose the Trans-Caspian. At this time the Russian Foreign Ministry spokesman Aleksandr Lukashevich commented on the construction of the Trans-Caspian Gas Pipeline (THC), which would connect Azerbaijan and Turkmenistan, and then direct the gas flow on the Southern Corridor to the EU, bypassing Russia. According to him, Russia and Iran are now actively opposing this position, stating that the construction of such a pipeline under the Caspian Sea must enlist the support of all the countries of the Caspian region.
Today the 22nd International Exhibition "Caspian Oil and Gas-2015", which takes part in the Magnitogorsk Metallurgical Plant, started its work in Baku.
The widest range of products and plant businesses, the Group OJSC "MMK", is traditionally on the stand of the largest enterprise of metallurgical industry of Russia. The main focus is on products for the oil and gas sector, actively developing in the region: proven oil reserves in the Caspian shelf are estimated at over 10 billion tons.
In January – October, Azerbaijan reduced oil exports by 1.9% to 28.2253337 million tons, the state customs committee reports to Interfax-Azerbaijan.
Oil exports were 23.0574924 million tons via Baku-Tbilisi-Ceyhan pipeline, 3.5639638 million tons via Baku-Supsa, 848,519 tons via Baku-Novorossiysk and 755,358.5 tons via the railway to the Georgian ports.
The declared oil volume was 20.2680461 million tons for $16.295 billion.
In January – October, Azerbaijan exported 1.73798867 million tons of oil products for $1.18381413 billion.
As it was previously reported, Turkey and Russia are preparing to conclude an international agreement. Along with traditional offers on nuclear energy and gas, the Turkish side has raised the issue of how to transport liquid hydrocarbons to the Mediterranean Sea bypassing the extremely congested Bosphorus Strait. But instead of failed economic project of Samsun-Ceyhan oil pipeline, proposals to solve this problem through the positive development of existing Russian-Azerbaijani and Turkish-Azerbaijani agreements were made during preliminary consultations on alternative routes for oil. It was a question about the use of the Baku - Tbilisi - Ceyhan (BTC) oil pipeline.
Russian oil is delivered to Baku through the reverse mode via the already working Baku – Novorossiysk oil pipeline. However, it won’t come into the BTC pipeline, as it is much inferior in quality than the Caspian oil. But Russian Urals can be successfully processed at Baku refineries and the volumes released of Azeri Light will be exported through the Turkish port of Ceyhan. This scheme was suggested by head of the Russian state-owned company Rosneft, Igor Sechin in August of last year. He talked about the economic benefits of such scheme: "If we supply Urals crude to Baku refineries, we will obtain efficiency in transport, the volumes received of Azeri Light from Ceyhan, for example. We will supply it to our Italian processing plants or German ones".
The leaders in Mangistau oil imports are Switzerland, Austria and Romania, the state income department of the Mangistau region reports. Oil shares 99% in total exports of the region. In 2014, it gained 135.1 billion tenges of customs duties, by 44.3% more than within the corresponding period of the previous year. The share of oil in total exports increased from 98.9% to 99.6%. Switzerland shares 37% in oil exports from the region. Austria shares 28%, and Romania shares 14.2%.
In September following the President, R. Erdogan, a new Prime Minister of Turkey, A. Davutoglu, visited Azerbaijan. He connected his visit to the ceremony of the construction start of the TANAP by which it is planned to ship gas from the Azeri deposit Shakh-Deniz to Europe. The project was represented as the expansion of the existing gas pipeline Baku-Tbilisi-Erzurum in the framework of the Southern Gas Corridor. The construction start was nominal as it is planned to ship the Azeri gas to Erzurum by TANAP with the use of the already existing capacities. The works on the adaptation of the existing pipe to the pumping of the additional volume should start on April 1st 2015.
The ceremony was held in Baku on September 20th on the day of the 20th anniversary of signing in 1994 of the “contract of the century” that meant the foundation of the consortium of the western companies for the development of oil deposits “Azeri-Chirag-Gyuneshli”. The continuation of the “contract of the century” aimed for the Azeri oil transportation by passing Russia was the Baku-Tbilisi-Ceyhan oil pipeline put into operation in 2006 …
In September, after the President of Turkey, R. Erdogan, Azerbaijan was visited by the new Premier of Turkey A. Davutoglu. He coordinated his visit with the ceremony of laying of the foundation of TANAP that will transport gas from the Azeri Shakh-Deniz deposit to Europe. The project was presented as broadening of the active pipeline Baku – Tbilisi – Erzurum within the South gas corridor. The laying of the foundation was nominal because Azeri gas will be transported via TANAP to Erzurum with the use of the active capacities. The work for adjustment of the active pipeline for transporting of the additional volumes should start on April 1st 2015.
While we are long accustomed to hearing about the prowess of Kazakhstan’s oil-driven economy, or Uzbekistan’s assertiveness as the self-anointed regional leader, Turkmenistan rarely makes any news, except in the negative. Indeed it has a reputation, earned mainly under former President Separmurad Nyazov, as an authoritarian fortress insulated from the outside world. However, Turkmenistan is shaping into a country whose potential is unparalleled in the region, thanks to a series of fortunate measures adopted in recent years. Ashgabat is seeking to develop today its energy and transport potential and modernize the economy by introducing selected reforms, in a way not dissimilar to what other regional countries have done much earlier.
Ashgabat’s approach has three pillars: pipelines, extraction of hydrocarbons, and electricity generation.
While until 2009 the country depended on Russia almost exclusively, Turkmenistan today enjoys the most diversified set of pipelines in the region, with three different export routes. The first remains the Central Asia-Center pipeline to Russia and Europe. A second route links it to Iran thanks to the Korpezhe-Kurt Kui and since 2010 the Dauletabad-Sarakhs-Kargan line. The two pipelines reach a combined capacity of 20 billion cubic meters (bcm) of gas per year. But the third and most important route is the China-Central Asia Pipeline, destined to supply more than 40 percent of China’s gas by 2020 – the equivalent of 80 bcm per year. Its first two lines became operational in 2009 and 2010 respectively, and the third line started pumping in June 2014. Line D, the fourth section, is scheduled to be ready by 2016/17.
A (long-delayed) fourth route – the 1,735 km TAPI pipeline for a cost of $7.6 billion – is making progress coordinated by the Asian Development Bank (ADB). Turkmenistan will begin work on its section in 2015 and the pipe should be online by 2017/18. On top of that, Ashgabat is also completing a domestic East–West pipeline, to carry up to 30 bcm of gas to the Caspian Sea, for shipment to Azerbaijan and, from there, to Turkey and Europe through the Baku-Tbilisi-Ceyhan pipeline.