Page 15 - MEOG Week 22 2021

MEOG NEWS IN BRIEF MEOG

If the US green-lights Iranian oil sales—any three newly discovered onshore wells. energy needs, but constant attacks on the Sinai
sales Iran makes currently must be made on The wells have been found in Diyarbakir Peninsula portion of the Arab Gas Pipeline
the grey market under the radar in an effort and Kirklareli provinces, according to Turkish from 2009 resulted in a decline in imports,
at avoiding secondary sanctions that can be Energy Minister Fatih Donmez. The wells and they were discontinued completely in
slapped on buyers—crude traders will closely would produce nearly 6,800 barrels of crude 2013.
watch how fast Iran is able to ramp up crude oil per day, he said. Jordan was consequently forced to turn
sales to world markets as it could impact this He further specified that the Akoba-1 to the international market for oil and gas
year’s rally in oil prices. In theory, floating (Diyarbakir), Yenisehir-1 (Diyarbakir) and supplies, pushing its overall energy import
barrels could reach most buyers within a few Misinli-2 (Kirklareli) wells would have daily bill higher from JOD2.4bn ($3.4bn) in 2011
weeks, but Matthews was cited as saying that it production capacities of 2,800, 3,000 and 1000 to JOD4.4bn in 2015, owing partly to the lack
would likely take longer for the hoard to clear b/d, respectively. of gas supply from Egypt on favourable terms
in practice. Turkish President Recep Tayyip Erdogan and also to higher global oil and gas prices in
“It will just take a bit of time for all the on May 27 said Turkey’s average domestic 2011-2014.
channels to get sorted out, for the buyers to daily oil output exceeded 61,000 b/d, Xinhua This placed a heavy financial burden on the
have confidence to return,” he was reported reported. Jordan Electric Power Co.
as saying, adding: “You’ll see the activity BNE BNE
gradually increasing over a period of months.”
Gibson estimates show Iran has a fleet of Turkey’s gas imports leap
40 tankers storing oil. Some 29 of these are GAS
very large crude carriers (VLCCs), where up 48% in March
standard cargo sizes are 2mn barrels each, EGAS extends gas supply
while 11 are Suezmaxes, which hold half as Turkey imported 5.82bn cubic metres (bcm)
much oil. Citigroup has previously said Iran with NEPCO of natural gas in March, marking a 47.8% y/y
could have 65mn barrels floating and 54mn in increase, data from energy market regulator
on-land storage. The Egyptian Natural Gas Holding Company EPDK have shown.
“The timing and the size of a return (EGAS) and Jordan’s National Electric Power The country’s total gas consumption rose
of Iranian oil to the market is pivotal to Company (NEPCO), which is responsible by 42.3% to 6.54 bcm from 4.6 bcm in March
projecting the trajectory of global oil for electricity transmission and distribution, 2020.
inventories and crude oil prices,” Citigroup extended the timeframe for their existing Households’ consumption expanded by
said in a note to investors on May 24. “The natural gas supply contract through which 43.3% to 2.83 bcm, while the use of gas in
physical oil can be delivered to major export Egypt supplies Jordan with 330mn cubic feet power plants jumped 248% to 1.36 bcm in the
markets, including India and China, within (9.34mn cubic metres) per day. month.
10-20 days.” Under the most optimistic The two Arab neighbours signed a Imports from Russia amounted to 2.58
forecasts, Iran could return to pre-sanctions supplementary appendix to expand Jordan’s bcm, up 563% y/y, while Turkey purchased
oil production of almost 4mn barrels a day in natural gas network. Egypt will also provide 1.07 bcm of natural gas from Azerbaijan and
as little as three months. training to Jordanian energy engineers on oil 850 mcm from Iran.
BNE and natural gas issues. Consumption growth in natural gas power
Ensuring a reliable and affordable energy plants increased as the plants were required
Turkey to expand supply for electricity production has been to generate more electricity due to drought
a major challenge for Jordan, after the US
pushing down hydro capacity over the past
production with three new invasion of Iraq in 2003 ended cheap Iraqi oil few months, state-run news service Anadolu
imports.
said.
onshore wells supply of 250 mmcf (7.08 mcm) per day of gas BNE
An agreement with Egypt in 2004 for the
Turkey is set to slightly expand its small oil provided via pipeline to the port of Aqaba in
production industry by extracting oil from southern Jordan helped Amman to meet its

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