Page 17 - FSUOGM Week 35 2022

FSUOGM NEWS IN BRIEF FSUOGM

spread in 2Q22, a cascade of dividend Ukraine's gas consumption will be 35-40% various repairs were carried out on the
cancellations from Russia’s largest blue chips less than last year, Ukraine Business News Shah Deniz Alpha platform, a new set of
followed, with that of gas giant Gazprom reported. In 2021, Ukraine used 19.4 bcm gas analysis equipment was installed (to
hurting local investors the most. of gas during the heating season, whilst this measure the intensity of gaseous methane),
The analysts at BCS Global Markets year it is expected to be 11.7 bcm. three complex valves were replaced and a
note that while Tatneft's 1H22 EBITDA of Kyiv has warned Ukrainians that they number of other works were carried out.
about $3.5bn had outstripped the forecast face a difficult winter due to the impending According to BP-Azerbaijan, preventive
of $2.7bn by over 30%, “net income of $2bn energy crisis, as it has not imported gas work is included in the annual work
was a more modest 14% above our $1.7bn from Russia for over three years and its programme and project budget for 2022.
forecast, but still represented a nice bit of European friends will be short of gas This year's production plan also included
outperformance”. themselves this winter. a temporary shutdown of the Shah Deniz
“While we take the outperformance With Ukraine’s gas storage tanks unfilled, Alpha platform. The contract for the
with a small grain of salt, the improved Kyiv has offered Europe access to the development of the Shah Deniz field
transparency is an undoubted positive for country’s vast gas storage facility on the was signed in Baku on June 4, 1996, and
the stock,” BCS GM commented. EU border, which has a volume of 30 bcm. ratified by the parliament on October 17
“Given no forewarning and the lack of Currently, 15 bcm is free, although Ukraine of the same year. The participants of the
reporting from Tatneft’s peers – including hopes to save at least 3 bcm for its own use, Shah Deniz project are: BP (operator,
several that have signalled that 1H22 Ukraine Business News reported. 28.8%), Petronas (15.5%), SOCAR (16.7%),
reporting will not be forthcoming any “Ukraine needs 3 [bcm] of additional LUKOIL (10%), NICO (10%), TPAO (19%).
time soon – Tatneft’s move caught us reserves, which we ask you to keep in Currently, gas production from the Shah
and, presumably, the rest of the analytical Ukraine, and another 12 bcm may be the Deniz field is carried out from the Alpha
community by surprise,” BCS GM wrote. gas needed in winter for the security of all platform as part of Stage 1 and from the
of Europe. You can help us – and this will be Bravo platform as part of Stage 2. As part
your help both to us and to yourself,” stated of Stage 2, gas production at its peak will
Ukraine's central heating Ukrainian President Volodymyr Zelenskiy amount to 16 bcm per year.
to international allies.
will start later, end earlier

Ukraine’s national gas company, Naftogaz, BP resumes output at Alpha China wins contract to
has warned that this year’s heating season supply Turkmenistan with
will start later, end earlier and be 3 degrees platform in Shah Deniz field
lower, Ukraine Business news reported on oil and gas well pipes
August 30. BP-Azerbaijan has resumed production
Kyiv previously tasked Naftogaz with from the Alpha platform at the Shah Deniz Turkmen President Serdar
pumping 19bn cubic metres of gas into field after carrying out maintenance work, Berdimuhamedov has signed an order
underground storage by winter; however, Tamam Bayatli, head of the press service of authorising Turkmennebit SOE to purchase
the company has only managed to BP-Azerbaijan said in a statement. 2,309 tonnes of drilling pipes of various
accumulate around 12.3 bcm so far. The "Gas and condensate production from sizes from China's King Ease company, Silk
main problems include high gas prices and the Shah Deniz Alpha production platform Road Briefing reported on August 29.
Ukraine’s financial crisis, which has left it at the Shah Deniz field was suspended on The drilling pipes are to be used in
struggling to buy gas imports. August 14 for a period of 14 days to carry overhauling oil and gas wells.
Typically Ukraine’s central heating out maintenance work on the platform. Turkmenistan ranks among the world’s
system heats apartments to 21°C; however, These works have been successfully leading countries in terms of gas reserves.
this year the country’s central heating will completed and production from the As a result of the industrial development
drop to 17-18°C, according to CEO of platform has resumed," she said. of newly discovered gas fields, its gas
Naftogaz, Yuriy Vitrenko in an interview She recalled that preventive work was reserves have officially increased by 126bn
with The Guardian. Ukraine needs also carried out at the units built at the cubic metres. The country is prioritising
approximately $10bn, which it hopes to Sangachal terminal as part of Stage 1 of the development of oil and gas processing
receive from international allies in order the development of the Shah Deniz field. plants, as well as the export of energy
to purchase 4 bcm. Canada recently At the same time, gas and condensate resources to global markets.
gave Ukraine $450mn for emergency gas production from the Shah Deniz Bravo The contract represents a big win for
purchases. production platform at the Shah Deniz field, China in a competitive field dominated by
“Without [Western] financial support and gas exports under Stage 2, including Russia, Silk Road Briefing noted.
we will lack gas and it will mean we’ll have the operation of Stage 2 facilities at the Turkmenistan is becoming more open
really high risks for the power system Sangachal terminal and gas supplies to to foreign investment, and initial cargo
[going] down,” said Vitrenko. the countries of the region and Europe trains from China have already arrived
Another problem is Ukraine's loss of continued as normal. in the remote country via Kazakhstan
important gas processing plants, including Within the framework of the and Uzbekistan to connect with a section
the Shebelinsky gas processing facility, programme, preventive maintenance and of the multi-nation International North
as hostilities have forced plants to stop inspection of important safety equipment South Transport Corridor (INSTC) rail
operations. This is the same for the were carried out at the Shah Deniz Project network that runs to neighbouring Iran
Kremenchuk oil refinery and Ukrtransnafta at the Sangachal terminal, flare cables from where cargo can be sent on to multiple
facilities, which have both suffered damage were replaced, a new set of gas analyser destinations including India. Turkmenistan
from Russian attacks. equipment was installed (to measure officially joined INSTC last week. Its
With a large section of the population methane intensity), a number of works were Turkmenbashi port will provide INSTC
seeking refuge abroad and damage to carried out to protect the monoethylene cargo with Caspian sea routes, rivalling the
infrastructure in the occupied territories, glycol line from pressure increase, valve offer of Baku port in Azerbaijan.
the Ministry of Energy predicts that replacement and other works. In parallel,

Week 35 02•September•2022 www. NEWSBASE .com P17