Page 23 - FSUOGM Week 01 2021
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FSUOGM                                      NEWS IN BRIEF                                          FSUOGM










       RUSSIA                              metres per day in November.          Turkey, Azerbaijan sign MoU
                                              Moscow and Kyiv last year signed a
       Energy Ministry to cut staff        new deal for Russian gas transportation   on Nakhchivan gas pipeline
                                           to Europe via Ukraine, a major route for
       by 5% in January                    Gazprom’s gas exports, for 2020-2024.  The energy ministers of Turkey and
                                              Ukraine energy company Naftogaz said
                                                                                Azerbaijan have signed a memorandum of
       The Russian Energy Ministry will close   in October that Gazprom had asked it about   understanding (MoU) for the construction
       three departments and cut 5% of staff from   booking more capacity to transport gas to   of a natural gas pipeline from Turkey to the
       January 1, the ministry said in a statement   Europe, a sign Gazprom was worried that   Azerbaijani exclave of Nakhchivan.
       December 31.                        US sanctions are targeting its Nord Stream 2   The security of Nakhchivan’s energy
         The government ordered the ministry to   pipeline project to avoid Ukraine.  supply would be secured by the pipeline,
       cut the number of deputy ministers to five   Gazprom had already booked 65 billion   Turkish Energy Minister Fatih Donmez
       from seven.                         cubic meters of capacity for gas exports via   said on December 15 at the MoU signing
         The ministry said that it will close the   Ukraine in 2020.            ceremony also attended by Azerbaijani
       project management, corporate policies and                               counterpart Parviz Shahbazov.
       property relations and payment discipline                                  Building a pipeline directly from
       monitoring departments.                                                  Azerbaijan to Nakhchivan is out of
                                           CENTRAL ASIA & SOUTH                 the question as it would have to go via
                                                                                Armenian territory, and Baku and Yerevan
       Promsvyazbank says gives            CAUCASUS                             do not have diplomatic relations.
                                                                                  The planned pipeline would be linked
       $6bn of guarantees for              Turkey’s 6.6-bcm natural             to the Igdir Natural Gas Pipeline located in
                                                                                the easternmost Turkish province of Igdir
       Arctic LNG 2                        gas contract with                    and would likely be filled with gas obtained
                                                                                from Azerbaijan, according to Donmez.
       Promsvyazbank has given over U.S. $6   Azerbaijan’s Socar to expire        Turkey's Petroleum Pipeline Company
       billion of state guarantees for the Arctic                               (BOTAS) and Azerbaijan’s state energy
       LNG 2 LNG project, the bank said in a   in April                         company SOCAR are to cooperate in
       statement on December 31.                                                constructing the pipeline.
         "The state guarantees were provided for   The 6.6bn cubic-metre (bcm) natural gas   Nakhchivan has a population of
       loans to 15 leasing companies participating   contract in which Azerbaijan’s state oil   nearly 500,000 and an annual natural gas
       in fulfillment of the project. The money   company SOCAR supplies Turkey's state-run   consumption of 500mn cubic metres,
       is provided for construction of LNG gas   pipeline operator Botas is set to expire in April  Donmez said.
       carrier vessels," the bank said.    2021, Turkey’s government-run news service   Nakhchivan currently depends mainly
                                           Anadolu Agency reported on December 29.  on natural gas that arrives via Iran, based
                                              The renewal of the contract is seen as   on Azerbaijani swap operations with the
                                           unlikely since Turkey is already importing   Iranians.
       EASTERN EUROPE                      6bcm of gas via the Trans Anatolian Natural   Under a swap agreement between Baku
                                           Gas Pipeline (TANAP), part of the newly   and Tehran inked in 2004, Azerbaijan
       Gazprom raises capacity             operational Southern Gas Corridor (SGC)   supplies gas to Iran's isolated northwestern
                                                                                border city of Astara, with 85% of that
                                           that runs to Europe from Azerbaijan.
       requests for shipments via          Russia’s Gazprom and a 1.3bcm liquefied   volume flowing to Nakhchivan. .
                                              Additionally, a 4bcm contract with
       Ukraine in January                  natural gas (LNG) contract with Nigeria are
                                           to expire at the end of 2021.
       Russian gas group Gazprom has raised its   Russia supplies gas to Turkey via the   Tatneft, Allur to invest
       additional transportation capacity requests   TurkStream and Blue Stream undersea   RUB21bn in Kazakh tires unit
       for gas exports to Europe through Ukraine   pipelines traversing the Black Sea. They have
       in January, based on trading platform data   a total capacity of 32 bcm per year.  Russian oil company Tatneft and Kazakhstan's
       cited by Reuters.                      Other gas contracts totalling 4bcm that   Allur will invest in a RUB20.9 bn tire joint
         Data from the Hungarian Regional   Botas transferred to private sector in 2007   venture (JV) in Kazakhstan, Tatneft said
       Booking Platform showed the Ukrainian   are also set to expire over the course of 2021.  in a statement on December 30, a day after
       gas transportation operator has sold 41.2   A 2.1bcm LNG contract with Qatar   it signed the deal with the government of
       million cubic metres per day of pipeline   expired in September.         Kazakhstan, Allur Tyres, KamaTyresKZ and
       capacity to Gazprom at an auction for   The overall volume of oil-indexed long-  group Allur.
       transportation of gas via the Sudzha   term natural gas contracts that will expire in   The sides will establish a highly-
       transhipment point at the Russia/Ukraine   2021 totals 15.9bcm. Turkey has 58bcm of   technological manufacturing of car
       border for January.                 such contracts in total.             components, including a tire plant in
         For December, Gazprom had booked                                       Kazakhstan.
       11.4 million cubic metres of additional
       capacity per day and 10.27 million cubic



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