Page 18 - FSUOGM Week 21 2022

FSUOGM NEWS IN BRIEF FSUOGM

Under this, for a 20-year period, Iran would in Azerbaijan amounted to 34.7mn tonnes (an 2021 are still missing. Insignificant volumes were
export gas for consumption by Armenian power increase of 0.1%), gas was 43.8 bcm (an increase delivered to Russia and Georgia in Q1-2022.
plants, while Iran would import electricity from of 18.1%). The structure of oil exports in January-April
Armenia, which has been importing gas from 2022 by main buyer countries:
Iran since 2009.
Oil transportation via BTC in Azerbaijan increased gas Moldovan gas company
exports from Shah Deniz
rose 1% in Q1-2022, transit by almost 14% in Q1 seeks to hike end-user gas

oil pumping up by 22% The export of Azerbaijani gas from the Shah prices by 59-67%

The volume of oil pumped through the Deniz field in January-April amounted to 6.78 Moldovagaz, the Moldovan natural gas company
Baku-Tbilisi-Ceyhan (BTC) pipeline in Janu- bcm, which is 13.7% higher than the same controlled by Gazprom, has asked the market
ary-April amounted to 9.1mn tonnes, which period last year, according to the State Statistics regulator ANRE to endorse end-user prices that
is 1.2% higher than the same period last year, Committee. The share of gas exports from the are 59% higher for residential consumers and
according to the State Committee for Statis- Shah Deniz field accounted for 48.7% of the total 67% higher for large industrial consumers.
tics. 79% of the total volume of oil transported volume of gas transported through the main gas The new prices would be enforced as of June
through the main oil pipelines of Azerbaijan pipelines in the reporting period. 1. The social impact will be seen towards the end
was pumped through the BTC oil pipeline in The main gas pipelines of Azerbaijan trans- of the year when consumption increases. During
1Q22. According to the committee, the transit oil ported 13.9 bcm of gas (an increase of 12.4%) the past winter season, the government provided
through the BTC pipeline amounted to 1.5mn in Q1-2022. Gas from the Shah Deniz field subsidies to households. Separately, the impact
tonnes (an increase of 22.2%). is currently exported to Georgia, Turkey and of higher gas prices on businesses will be imme-
At present, oil from the block of Azeri-Chi- Europe. The export of Azerbaijani gas from the diate, adding to inflationary pressures at a time
rag-Guneshli fields and condensate from the Shah Deniz field in 2021 amounted to 17.6 bcm when consumer price inflation has hit 27%.
Shah Deniz field, as well as SOCAR oil are (+43.6% of the 2020 figure). The company argues that the price paid to
pumped through the BTC oil pipeline. Also, Gas production from the Shah Deniz field Gazprom, under the formula agreed through
Turkmen, Kazakh and Russian oil are pumped began in December 2006. The equity stakes of the long-term contract signed last November, is
through the BTC. The length of the BTC oil pipe- the parties in the contract are currently as fol- 52% above the price used to calculate the end-
line is 1,768 km, of which 443 km is in Azerbai- lows: BP (operator, 29.99%), SOCAR (21.02%), user prices: $941 per 1,000 cubic metres.
jan, 249 km in Georgia, and 1,076 km in Turkey. Lukoil (19.99%), NICO (10%), TPAO (19% ). Based on current prices and including the
The throughput capacity of the pipeline exceeds financial deviations for the years 2011-2021
50 million tons of oil per year. (MDL2.11bln), Moldova may end the year by
The project participants are: BP (30.1%); Azerbaijan’s revenue from paying more than $1bn to Gazprom.
SOCAR (25%); MOL (8.9%); Equinor (8.71%); If ANRE approves Moldovagaz’s request, the
TPAO (6.53%); Eni (5%); Itochu (3.4%); Exxon- oil exports increased by 1.5 residential users will pay, as of June 1, a price of
Mobil (2.5%); Inpex (2.5%), TotalEnergies (5%) MDL22.2 per cubic metre, 59% more than they
and ONGC (2.36%). The volume of oil pumped times in Q1-2022 pay now and 5.2 times more than they were pay-
through the BTC in 2021 amounted to 26.4mn ing a year ago. The medium-sized industrial con-
tonnes, which is 3.9% lower than in 2020. The export of declared oil from Azerbaijan sumers would face a 65% price hike to MDL20.6
in Q1-2022 amounted to 9.4mn tonnes, which per cubic metre, while the large industrial con-
is 11.7% lower than the same period last year, sumers would pay MDL20.3 per cubic metre.
Azerbaijan reduced oil and according to the State Customs Committee
(STC). The total value of oil exported during
condensate output by 4% the reporting period amounted to $6.5bn (an EU creates loophole
increase of 50.3%).
in Q1-2022, increased gas ture in Q1-2022 amounted to 55.35% (68.4% for Russia’s proposed
The share of oil in the total export struc-
production by 14% in Q1-2021). During the reporting period, 21 gas-for-rubles scheme
countries were buyers of Azerbaijani oil. Among
Oil production with gas condensate in Azer- them, according to the State Customs Commit- THE European Union said that companies could
baijan in Q1-2022 amounted to 11.1mn tonnes, tee, traditionally, Italy remains the main buyer, keep buying Russian gas through Gazprombank
which is 3.8% lower than the same period last which accounted for 46.1% of all exports of oil in without breaching sanctions for Russia’s military
year, according to the State Statistics Committee. Q1-2022. In addition to Italy, Portugal and Israel invasion of Ukraine, with the condition that they
In particular, the production of marketable oil remain in the TOP-3 buyers. consider their obligations fulfilled once they pay
with condensate amounted to 11mn tonnes (a In general, Azerbaijani oil was mainly sup- in euros or US dollars, Bloomberg reports citing
decrease of 3.9%). plied to European countries, although Thailand, new guidelines of the European Commission.
Gas production in Azerbaijan in Q1-2022 Tunisia, and India also remain among regular The latest EC guidelines do not prevent
amounted to 15.7 bcm (an increase of 14.4%). buyers. At the same time, Croatia, and Viet- European gas buyers from opening accounts in
At the same time, commercial gas production nam returned to the group of buyers, but China, Russian Gazprombank as demanded by the gas-
amounted to 11.9 bcm (an increase of 16.5%). France, Canada, Indonesia and a number of for-rubles scheme imposed by Russia’s President
In 2021, oil production with gas condensate others who actively purchased Azerbaijani oil in Vladimir Putin.

P18 www. NEWSBASE .com Week 21 25•May•2022