Baku-Tbilisi-Erzurum, Russia Oil and Gas
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.
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.
Azerbaijan is ready to supply Turkey with energy at affordable prices, stated Natig Aliyev, the Minister of Energy to the Turkish online newspaper «Malatya Güncel» on Saturday.
According to him, Azerbaijan and Turkey are bound by major economic projects that will be implemented in the future.
The minister noted that...
A more favorable situation is taking place in the Azerbaijani gas industry in the long-term perspective as compared with the oil sector. The key expectations are connected with implementation of the second stage of the Shah-Deniz project with total volume of investments in the amount of up to $45 billion by the end of 2018, for which the export infrastructure in the European direction is created.
At the same time, in the medium-term perspective the total production of natural gas in the country will be stabilized at the level of no more than 30 billion cubic meters because of insufficient free producing capacities. The situation is unlikely to be changed by planned increase of the production within the first stage of the Shah-Deniz to 10.4 billion cubic meters in the current year, and fall of producing wells’ yield may amend this plan. The total production of commercial gas won’t exceed 19 billion cubic meters.
As a comparison, in 2012, 26.9 billion cubic meters were extracted in the country (including 7.73 billion cubic meters from the Shah-Deniz), 17.2 billion cubic meters of which fell on commercial gas. On the results of 2013, the total production is preliminary estimated by SOCAR at 29.5 billion cubic meters.
Implementation of South Gas Corridor considered the alternative to Russian gas deliveries has started. The shareholders of Shakh-Deniz made their final investment decision about the second stage of the project which will help to supply South Europe with 10 billion cubic metres of gas per year by 2019. However, the growth of the costs scares away European companies. Statoil was the first. It rejected entering the gas transportation network and reduced its share in future extraction, Kommersant reports.
Azerbaijan cannot accept Turkmen gas at its territory. The EU and Turkmenistan restart negotiations about Trans- Caspian pipeline that will be laid via the Caspian Sea bottom to Azerbaijan. The final point of Turkmen gas supplies is Europe. In near days, the EU commissioner for energy G. Ettinger is going to arrive to Ashgabat for discussion of rehabilitation of the project. However to beat the target, Europe will have to meet agreement with Baku that has not agreed to allow Turkmen gas transit via its territory as yet.