Page 19 - FSUOGM Week 34

FSUOGM NEWS IN BRIEF FSUOGM

Western car cos ask energy ministry said in July. The Central
EASTERN EUROPE poor compliance seen in May, the Kazakh
Turkey’s gas imports from Russia for zero duty for LNG Asian nation produced 5.3mn tonnes of oil
in June, or 1.297mn barrels per day (bpd),
Russia, Iran decline sharply vehicles excluding gas condensate, compared with
6.1mn tonnes of crude produced in May, the
in H1 as LNG and Azerbaijani Western car producers asked Russia to ministry said. The country will continue to
cancel a customs duty and a recycling fee
maintain this level of production in August
gas imports grow for imported commercial vehicles running and September to offset the overproduction
in May, it added.
on liquefied natural gas (LNG), business
Turkey’s natural gas imports from Iran and daily Vedomosti reported on August 24, Kazakhstan now plans to produce
Russia declined by 44.8% y/y and 41.5% citing documents for discussion with the 85.2mn tonnes of oil in 2020, 86mn tonnes
y/y, respectively, in the first half of this year, government. in 2021 and 89.6mn tonnes in 2022.
according to Energy Market Regulatory Board A source told Vedomosti that Russian
data compiled by state-run news service gas giant Gazprom supports the proposal.
Anadolu Agency. The document cited by the newspaper says, Gazprom and Mongolia
The key factor was growing imports of "The measure aims at developing the LNG
cheaper liquefied natural gas (LNG) at the transport market until analogues of the agree to set up JV for gas
expense of piped gas. Turkey’s pipeline gas vehicles appear in Russia."
imports fell by 22.8% while LNG imports Russian truck producer Kamaz has made transmission to China
grew 44.8% in the first half of the year. only several vehicles running on LNG so
Turkey’s natural gas imports in H1 overall far but its representative told Vedomosti project
dropped by 3.5% to 22.5bn cubic metres that the company was ready to start serial
(bcm). Of this, the country imported 12.1 production. He declined to comment on Russian gas giant Gazprom and Mongolia have
bcm via pipeline and 10.3 bcm as LNG. the proposal to introduce a zero duty on signed a memorandum to establish a joint
Turkey purchased 2.02bcm of gas from imports. venture to develop a technical feasibility study
Iran with no imports between April and for the construction and use of a trunk pipeline
June while imports from Russia declined to for natural gas supplies to China, Gazprom said
4.7bcm. on August 25.
The country imported its highest amount CENTRAL ASIA & SOUTH Prime Minister of Mongolia Khurelsukh
of gas, at 5.44 bcm, in the first half of this Ukhnaa along with Mongolian agencies
year from Azerbaijan. The volume marked a CAUCASUS took part in an online meeting with the
23.4% increase compared to the same period Gazprom board chairman Alexei Miller to
of 2019. OPEC+ urges Kazakhstan to discuss prospects for cooperation in the
Turkey, under its long-term LNG contract construction of the pipeline running from
with Algeria, imported its highest LNG comply with oil output cut Russia to China via Mongolia.
volume at 2.99 bcm in the six months. During the meeting, Mongolian Deputy
However, the highest spot LNG volume The group of OPEC and non-OPEC oil Prime Minister Sodbaatar Yangu and Miller
imported by Turkey came from Qatar at producers (OPEC+) met on August 19 and signed a memorandum of understanding
2.85bcm. That marked a 124% y/y increase. pressed countries producing above their on the establishment of a special-purpose
Turkey’s spot LNG imports from the US oil output targets, including Kazakhstan, to company for the project. The company
grew by 144% y/y to reach 2.16bcm in the comply with their agreed production levels. will operate in Mongolia and develop the
first half. Cuts this month and next are expected feasibility study.
to deepen due to compensation by The project will involve Gazprom, CNPC
Nigeria, Iraq, Angola and Kazakhstan for from China and Erdenes Mongol from
Russia was China's top oil overproduction in May-July. Kazakhstan Mongolia. A confidentiality agreement will
raised its oil output in July by 2% m/m
be signed by Gazprom and Erdenes Mongol
supplier in July to 1.331mn barrels per day (bpd), two next week.
industry sources familiar with preliminary
In March, Russian President Vladimir
Russia returned to the top position by oil data told Reuters on August 3. The figure Putin gave Gazprom permission to start
supplies to China in July for the first time may indicate that the country was still designing the Siberian Power-2 project.
since April, Reuters reported on August 25, producing slightly over its target under a With the pipeline, Mongolia could earn
citing China’s General Administration of global oil production cut pact. It places oil $1bn a year by transiting 50bn cubic metres
Customs. output at 12,000 bpd above Kazakhstan’s of gas per year..
Russia's exports grew 30.1% on the year to target (1.319mn bpd) under the OPEC+
7.38mn tonnes. agreement.
Iraq ranked second with supplies rising by Kazakhstan reduced its oil output in June
35.7% year on year to 5.79mn tonnes. beyond the level it agreed to cut as part of
the OPEC+ global production reduction
agreement in order to compensate for its

Week 34 26•August•2020 www. NEWSBASE .com P19