Page 15 - FSUOGM Week 12 2023

FSUOGM NEWS IN BRIEF FSUOGM

Mohammad Reza Julai said on 10 March, namely Chevron, Eni, Shell, Lukoil and to 11.4 bcm (an increase of 39% compared
according to the Iranian agency Tasnim. KazMunayGas, plan to increase its output to 2021) or 51% of all supplies from
Iran has begun transporting gas received by installing another compressor unit by Azerbaijan," noted Shippati. The country
from Turkmenistan to Azerbaijan in 2026, according to a statement published by plans to export over 24 bcm of gas in 2023,
accordance with a trilateral swap agreement Kazakh President Kassym-Jomart Tokayev's with half going to Europe.
signed on November 28, 2021, in Ashgabat office. Shippati added that TAP has played a
(Turkmenistan) since January 2022. The Currently, the field operates with four crucial role in ensuring energy security and
agreement provided for deliveries to compressors that inject sour gas back into diversification of sources for European gas
Azerbaijan through Iran of up to 1.5-2 bcm the reservoir to boost pressure and increase consumers. "The TAP pipeline contributes
of Turkmen gas per year. the output of liquid condensate. to the strengthening of the energy
In early June 2022, Azerbaijani The operators are already in the midst partnership between Azerbaijan and the EU,
Economy Minister Mikayil Jabbarov and of adding a fifth compressor in a $970mn as well as to the wider development of the
Iranian Oil Minister Javad Oudji signed a expansion project, which they plan to Southern Gas Corridor," he said.
memorandum of understanding in Baku, complete by 2024, a year earlier than
according to which gas supplies from previously announced.
Turkmenistan to Azerbaijan through Iran The installation of a sixth compressor Daily oil output at Kazakhstan’s
were to double. by 2026 at a cost of $735mn will further
boost production, but it is unclear how that Tengiz reported as down 11% in
will affect annual output, which currently
Azerbaijan’s SOCAR to open stands at 11.3mn tonnes. Nonetheless, the early March
expansion is expected to increase total
office in Bulgaria, increase gas production throughout the life of the Oil production at Kazakhstan's Tengiz
oilfield, one of the world's largest producing
contract, which runs until 2038, by 46mn
supplies tonnes. reservoirs, dropped by 11% m/m in early
March due to unscheduled maintenance,
Azerbaijan’s state oil company SOCAR according to industry sources cited by
will open an office in Bulgaria in May and EU has received 21.5 bcm of gas Reuters.
is ready to provide cheap natural gas to The field, which typically produces more
local companies at low prices, Bulgaria’s from Azerbaijan through the TAP than 600,000 barrels of oil per day, saw its
President Rumen Radev said in a statement output fall to 563,000 bpd in the first week
on March 11. The Trans-Adriatic Pipeline (TAP) has of March.
Radev held an online meeting with already delivered more than 21.5 bcm of Tengizchevroil (TCO), the joint venture
his Azeri counterpart, Ilham Aliyev. The gas from Azerbaijan to European Union operating the oilfield, is 50%-owned by US
Bulgarian president was supposed to visit countries, according to Luca Shippati, oil major Chevron.
Baku but cancelled his visit following a managing director of the pipeline's operator, Production of liquefied petroleum gas
positive test for coronavirus (COVID-19). TAP AG. (LPG) at the field was said to have dropped
The opening of SOCAR’s office in "In Italy, we cover 15% of demand and by 40% during the same period. TCO has
Bulgaria was agreed by the former have made an important contribution not provided an official statement on the
government of Kiril Petkov last year as to supply security and market liquidity," matter.
part of the efforts for achieving energy Shippati said on the sidelines of the Top
independence from Russia. Utility conference in Milan.
In 2022, Azerbaijan supplied 600mn Shippati added that the pipeline's Kazakhstan’s petrol output up
cubic metres (mcm) of natural gas to existing capacity is designed to transport
Bulgaria, Azerbaijani Energy Minister over 20 bcm of gas, and the company plans 21% y/y in January
Parviz Shahbazov said. The amount of gas to increase its capacity to over 20 bcm by
exported to Bulgaria in 2022 was 210% 2027. "It's just a matter of installing new Kazakhstan's petrol production rose by
higher compared to the 280 mcm exported capacity to compress the gas. In particular, 20.6% y/y to 494,100 tonnes in January,
in 2021. the project involves the construction of while diesel fuel output increased by
Bulgaria started receiving increased two new compressor stations in Greece 13% y/y to 421,800 tonnes, according to
volumes of natural gas from Azerbaijan and Albania, the modernisation of existing Kazinform, which cited energyprom.kz.
after the completion of the Greece-Bulgaria stations and the installation of other Fuel produced in Kazakhstan covers
gas interconnector. The agreed volume of equipment," he said. most domestic consumption.
gas to Bulgaria is 1bn cubic metres (bcm) TAP AG has received an initial binding Shymkent city produced 196,700 tonnes
per year, which is one third of the country’s application to increase TAP's capacity by of petrol, while Pavlodar Region produced
annual consumption. However, Azerbaijan 1.2 bcm of gas by the end of 2025. Shippers 155,100 tonnes, and Atyrau Region 141,700
has said it is ready to increase the supplies will be able to request additional long- tonnes.
after developing the other deposits in the term capacity in TAP during the next stage Pavlodar Region also stood as the top
Caspian Sea. of mandatory market testing scheduled diesel fuel producer at 149,100 tonnes,
for November. "We are trying to offer the followed by Shymkent at 148,000 tonnes
market the possibility of booking and and Atyrau Region at 109,400 tonnes.
Karachaganak oil field operators purchasing additional transport capacities petrol and 5.4mn tonnes of diesel fuel in
The country produced 5mn tonnes of
in order to increase the pipeline capacity to
hope to boost output by 2026 more than 20 bcm by 2027," said Shippati. 2022. ™
Azerbaijan exported 22.3 bcm of gas in
The operators of Kazakhstan's 2022, an 18% increase y/y. "With the export
Karachaganak gas condensate field, of Azerbaijani gas to Europe, it amounted

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