Korea Oil and Gas, Japan Oil and Gas

Conditions on Asian gas market may become unprofitable for Russia

South Korean company Korea Gas Corp (Kogas) is going to challenge the terms of a long-term contract with the North West Shelf project operator for the supply of liquefied gas.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Gazprom to increase supplies to the East

At the last meeting of Gazprom's board of directors it was noted that in the conditions of growing energy consumption in the world there would be a growing need for traditional types of fuel.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Turkmenistan completes the construction of a large GCMR in Kiyanly.

Turkmenistan is completing the construction of a large gas-chemical complex in the village of Kiyanly. Work on the future producer of polyethylene and polypropylene is made by 90%.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

In January-June, export of plastic products in Russia grew by 15.4%

According to customs statistics, in January-June 2015, foreign trade turnover of Russia made up $270.7 billion and it decreased by 32.6% in comparison with January-June 2014. The trade balance showed a surplus of $95.3 billion, which is by 16.7 billion less than in January-June 2014.
In January-June 2015, the export of Russia amounted to $183.0 billion, decreased by 28.8% as compared with January-June 2014. In January-June 2015, the basis of the Russian export to the non-CIS countries was fuel and energy products, the share of which in the commodity structure of the export to these countries amounted to 68.1% (in January-June 2014 - 75.3%).
In January-June 2015, the cost volume of energy products decreased by 34.5% as compared with January-June 2014, and the physical - increased by 10.3%. Among the energy goods the volume of exports of crude oil increased by 11.5%, electricity - by 25.0%, oil products - by 20.2%, including: kerosene - by 39.3%, diesel fuel - 18.0%, liquid fuels - by 23.5%. At the same time, the export volume of natural gas was reduced by 4.1%, coal - by 1.2%.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

In 2015, Japan to import record volume of Russian oil

Japan can import a record volume of Russian oil this year due to low prices, proximity to the supplier and high refining margins, the Reuters reports.
In January, the oil import from Russia increased by 63%, and the growth in the supply will help Japan to reduce its dependence on Middle Eastern oil, on which almost 95% of the import fall.
Sources note that it is convenient for Japan, ranked the fourth in the world in terms of the oil import, to buy Russian fuel, which can be deliveredduring a few days, while the supplies from the Middle East take about three weeks.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

By 2035, Russia to increase gas supplies to the Asia-Pacific region 9 times

Alexander Novak has said that by 2035 the volume of gas supplies from Russia to the countries of the Asia-Pacific region will increase 9 times.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Export of Russian oil to China, South Korea and Japan grows by 25%

In 2014, Russia grew oil supplies to China, Japan and South Korea by a quarter, increased its share on the Asia-Pacific market to 8.7%. Here, domestic manufacturers were able to compete with the Gulf countries, share of which among exporters on the local market decreased in the past year.
In 2014, Russia increased the volume of oil supplies to China, Japan and South Korea by 10 million tons, which is equivalent to the growth of 25%. Thus, as the Bloomberg reports, referring to government data, the share of the supply of the domestic companies to market of the three largest Asian oil importers increased from 7.2% in 2013 to the current 8.7%.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Kozmino will continue dispatching of extended oil volumes for exports in September

They won’t be influenced by restart of oil refining at the Achinsk plant.
The special sea oil port of Kozmino, the final point of ESPO system, will continue the dispatch of extended oil volumes for exports in September, the official representative of Transneft, I. Dyomin says. Exports won’t decline after the restart of oil refining at the Achinsk plant for at least the next 2 months.
ESPO mix dispatches increased after the breakdown at the Achinsk oil refinery. They reported in July that the current transporting capacity of ESPO system enables to transport 24.5 – 24.6 million tons of oil this year because of the absence of oil collection for the Achinsk oil refinery.
Now the Achinsk oil refinery does not takes oil due to the breakdown. If this volume is dispatched for exports, 1.2 million tons more could be added in Kozmino this year, Mr. Dyomin says. Supplies won’t be influenced by the restart of oil refining at the Achinsk plant. In September, the oil refineries start mass repairs. It will lead to the release of additional volumes for exports for at least 2 months, September and October, and it’s hard to predict now whether the tendency will prolong into November.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Interview with RAO Energy System of East’s head, Sergei Tolstoguzov: “Market on the Far East region is impossible for reasons beyond control”

Against the background of a major intensification of projects on the development of the Far East region, RAO Energy System of East, which controls the isolated power system of the region, has offered the Government to abandon tariff regulation in the local energy sector and to switch to a new mechanism that takes into account the return on investments for 20 years. For a while, a number of structures of the holding company has not enough tariff revenues even to maintain their obsolete equipment and the repayment of their debt. But general director of RAO Energy System of East Sergei Tolstoguzov sees interest in the company from Asian investors, believes in the prospects of exports to Japan and doesn’t want to get rid of even the problematic network assets.
Q- the RAO Energy System of East still works in a lack of normal market conditions, these were canceled for the rest of Russia seven years ago. Do tariff the mechanisms of the return on investment into the construction of power generation and networks in such conditions exist?
A- With the reform of the electric power industry, most energy companies received the opportunity to use market instruments; almost the entire power generation sector was divided among private and public companies. But the Far East is a separate area, where market mechanisms don’t work - this is one big no-price zone with isolated energy systems, in which there is no differentiation by type of business. There are many reasons: the topology of networks, territorial restrictions, a lack of the development of energy sources, the sparse population. The Far East region occupies a third of the territory of Russia, but it has only 5% of the population. That’s why the full tariff regulation is maintained here and, as a consequence, there is a problem of the lack of mechanisms for the return on investment.
This seriously complicates the task of upgrading and the construction of new energy facilities. Today, we should include the profit in tariffs, but it is minimal and we can’t increase the prices sharply - the consumer can’t pay more. We have developed a number of proposals, which are based on long-term consolidation of the tariff. The FTS is now considering the introduction of regulation for three to five years. But the best period for us would be 20 years – this is the only way how we will be able to disclose adequate conditions of the return on investment to potential investors, a major station can’t be covered in five years. If we talk about specific tools, we would like to see RAB-regulation in the networks, and introduction of mechanisms that guarantee the return on capital and profit in generation. We actively work on all of these mechanisms, which will allow us to provide the return on investment in the energy sector of the Far East in the future, and plan to co-ordinate them with head of the Board of Directors (head of RusHydro, Evgeny Dod), the relevant Ministries and the presidential envoy to the Far Eastern Federal District Yuri Trutnev to submit them to the Government later.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Kozmino exports 11.7 mln tons of oil in H1

The shipment of oil from the end-point of ESPO pipeline system, Kozmino made up 117 lots of oil, of 100 thousand tons each. The total volume made up 11.7 million tons.
The main cargo receivers of the oil from ESPO pipeline are Japan - 4.4 mln tons of oil (37.6%) and China -2.4 mln.tons (20.5%). South Korea imported 1.7 million tons (14.5%), the Philippines – 0.9 million tons (7.7%), Thailand – 0.8 million tons (6.8%), Malaysia – 0.75 million tons (6.4%), New Zealand – 0.3 mln.tons (2.6%), Singapore – 0.27 mln. tons (2.3%), Taiwan – 0.1 million tons (0.9%) and Indonesia – 0.08 million tons (0.7%).
There has been received 11.1 million tons via ESPO pipeline and 0.6 million tons (5.2%) via Far Eastern rail road in January-June 2014. They are about to keep the same balance in the following months.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Oil and Gas, Metals and Mining, News from Russia and neighbouring countries
42a Pushkina Street; Ufa, Bashkortostan 450076; Russia
E 54° 43.48836" N 55° 55.52346"
Telephone: +7 927 303 00 25

Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer