Russia Oil and Gas, Itochu
Turkmenistan begins to build TAPI without solving the key challenges of the project.
Turkmenistan started the construction of TAPI gas pipeline to India. However, currently the prospects of the project worth $ 10 billion remain uncertain: no western company was included into the consortium for the construction of the pipe. It is also unknown who will build and provide security for the Afghan section of the gas pipeline.
On Wednesday, the Arbitration Court of the Far Eastern District (Khabarovsk) will consider the cassation appeal of the largest Russian oil company Rosneft to acts of the lower courts, which rejected its claim to the operator of the Sakhalin-2 project the company Sakhalin Energy (50% plus one share belong to Gazprom) for access to the gas pipeline, owned by the project.
Rosneft, which is a part of the consortium of the Sakhalin-1 project, planned to use the pipeline to transport up to 8 billion cubic meters of gas per year from its fields in the north of Sakhalin to a gas liquefaction plant, which Rosneft and its partners, such as ExxonMobil, are going to build in the south. Sakhalin Energy stated about the absence of spare capacity to transport gas of the plaintiff.
The European companies will lose at least $ 3,095 billion due to Russia's decision not to implement the "South Stream" pipeline project, a press release of the South Stream Transport informs.
The most significant losses will be incurred by the Italian energy holding ENI, a subsidiary of which (Saipem) has been contracted to lay the pipeline for the amount of $ 2.476 billion.
It is worth noting that in April a contract for the construction of the second line of the offshore section of the pipeline was with the Swiss company Allseas Group was concluded. In addition, the German Europipe, which has been recognized as the supplier of 50% of the order for the supply of pipes for the first line of "South Stream", will be deprived of a contract for $ 619 million.
Russia has decidd to cancel the South Stream pipeline.
As "the Kommersant" predicted, Russia has abandoned the South Stream pipeline - one of its biggest projects, the geopolitical importance of which initially exceeds the economic. After the conflict in the Ukraine, the EU firmly blocked the project, and now instead of the South Stream "Gazprom" is going to lay a pipeline to Turkey to at least partially abandon the transit through the Ukraine and use more than $ 25 billion of the already implemented investments. However, the experts believe that it is better to completely abandon the project: Turkey can become a problem user for "Gazprom".
Russia could not build the South Stream pipeline with the opposition of the European Commission and the lack of resolution of the Bulgarian authorities and therefore rejected the project, Vladimir Putin stated yesterday during a visit to Turkey. Thus, as "the Kommersant" predicted on November 10th "Gazprom" abandons one of the most ambitious and expensive projects in its history, after eight years of negotiations, the preparatory work and endless disputes with the EU. Instead, as "the Kommersant" wrote on December 1st, "Gazprom" will lay the pipeline into Turkey with the same capacity that was assumed for the South Stream: 63 billion cubic meters.
Rosneft may attract the Japanese Marubeni, Inpex, Itochu, JAPEX and SODECO to its offshore projects, the Russian oil company’s press centre reported to the agency Prime.
On Wednesday, the Rosneft’s President and CEO, Igor Sechin visited Japan within his working trip over the Asia-Pacific region.
The Japanese Itochu Company is interested in quickening the launch of an LNG plant in Vladivostok, the CEO for the CIS states F. Kiyosi says. They orient to 2017-2018 whereas Itochu is eager to quicken the launch of the enterprise in order to outstrip possible competitors in gas sales in Japan. As for technical specifications, the plant’s projected capacity should be not less than 10 million tons of LNG annually. In addition, they are going to introduce at the enterprise in Vladivostok some new technologies connected with helium extraction and processing.
Gazprom and the representatives of the Parliament of Japan have discussed the perspectives of growing the gas supply to Japan including on the account of the pipeline gas supply, Gazprom reports.
Read more »
Rosneft has decided to cooperate with the Japanese on the shelf of Magadan and East Siberia after a conflict with its Chinese partners. According to the local media, the Russian oil company will give up to 49% to a consortium of Japanese investors in the JV on exploration and development. The Inpex Corp., Japan Oil, Gas and Metals National Corp. (JOGMEC) and oil traders might join the consortium.
Gazprom Vice Chairman of the Board A. Ananenkov has met with the President, the CEO of Japan Far East Gas Co. Ltd Y. Matsukava. The sides have signed the Agreement for execution of the joint technical and economical research for realization in Vladivostok area of an LNG plant and a gas chemistry complex. The document presupposes studying of the possibility for realization of the pilot project for gas liquefying in the Vladivostok area and its further off-land transporting. Read more »