Page 18 - FSUOGM Week 13 2021

FSUOGM NEWS IN BRIEF FSUOGM

improving relations with Germany (Krym. Operator completes The report did not specify whether
Realii). On the other hand, economist or not the two sides reached any specific
Alexei Bayer believes that Biden is more Karachaganak gas conclusions. Kawasaki’s contract with
interested in repairing America’s frayed Turkmengas focuses on providing consulting
relations with Germany than “picking up debottlenecking project services for the management of a gas-to-
fights abroad while he has his hands full gasoline (GTG) plant.
with domestic issues” (Kyiv Post). in Kazakhstan ahead of The plant is located in Akhal Region’s
All that said, it’s worth noting that Ovadan Depe area, near the capital Ashgabat.
Germany is set to hold a federal election schedule The plant, at full capacity, can process
in September. And last Friday, Germany’s over 1.7bn cubic metres of natural gas and
second most popular party, The Greens, The operator of the giant Karachaganak produce 600,000 tonnes of RON 92 petrol,
added plans to abolish the Nord Stream gas and condensate field in Kazakhstan, 12,000 tonnes of diesel fuel and 115,000
2 pipeline to their election programme Karachaganak Petroleum Operating, tonnes of liquefied gas per year.
(Reuters). Bloomberg called this has completed the Karachaganak Gas
development “another risk” for Nord Stream Debottlenecking (KGDBN) project six
2, but also noted that while The Greens’ months ahead of its original schedule Turkmenistan 'exports
position is firm, it may not be their top despite COVID-19 pandemic-related
priority. restrictions, Upstream Online reported on 2.786bn cubic metres of
March 22.
According to the operator, the KGDBN gas to China in Jan'
project will increase its capacity to process
CENTRAL ASIA & SOUTH sour gas by 4bn cubic metres per year — Turkmenistan remains the primary pipeline
the sour gas includes highly corrosive and gas supplier to China. It accounted for
CAUCASUS poisonous hydrogen sulphide, the report 2.786bn cubic metres (cm) of gas imported
said. The improvement will help maintain the by China in January, Interfax reported, citing
UK risk consultancy Verisk output of condensate that flows to the surface Chinese customs authorities.
alongside the sour gas, the content of which
Turkmenistan earned a total of $876.1mn
warns oil producers like continues to grow each year as the field’s from its gas exports to China at $187 per
reservoirs are depleted.
1,000 cubic metre of gas in January. China's
Kazakhstan imperilled by into the reservoir to maximise the liquid 20% y/y cut in Turkmen gas imports
Separated sour gas is set to be re-injected
brought in last April proved a major blow
green energy transition hydrocarbons output. This will amount to an to the gas export-dependent Central Asian
nation, given that China accounts for 90% of
additional annual 75mn barrels.
UK-based risk consultancy Verisk Maplecroft KGDBN will provide capacity to enable Turkmen gas exports altogether.
warned in a report on March 25 that the delivery of the remaining expansion China also imported 916mn cm of gas
Kazakhstan is among oil producing nations projects at the field, such as the approved from Russia ($118.5 per 1,000 cm), 347mn
at risk of being negatively affected by the Fifth Injection Compressor project and the cm from Myanmar ($352 per 1,000 cm),
ongoing transition towards green energy away so-called Fourth Injection Compressor (4IC) 319mn cm from Kazakhstan ($162 per 1,000
from hydrocarbons, due to lagging economic project, which is currently undergoing its cm), 307mn cm from Uzbekistan ($151 per
diversification. execution phase. 1,000 cm).
Kazakhstan has been attempting to kick Russia reportedly received $118.5 per
off an economic diversification drive with cubic metre of gas, Kazakhstan $162,
a major focus on China’s investments in Turkmenistan and Japan’s Uzbekistan $151 and Myanmar $352..
infrastructure under the Belt and Road
Initiative in a bid to position itself as a transit Kawasaki discuss gas
and logistics zone for Chinese goods heading
to Europe and vice versa. The Central Asian processing plant warranty
nation is also attempting to develop its food
industry and the agricultural sector as a way State-run oil and gas company Turkmengas
of diversifying away from dependence on oil and Japan's Kawasaki Heavy Industries
exports. However, the pace of development discussed the end of the warranty period at a
in these areas leaves much to be desired. gas processing plant in Turkmenistan’s Akhal
Other states facing the greatest risk Region, which produces “environmentally
include Algeria, Iraq, Nigeria, Angola and friendly” synthetic petrol from natural gas,
Gabon, the report said. Trend reported, citing the Turkmen Ministry
of Foreign Affairs.

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