Page 15 - FSUOGM Week 45 2021

FSUOGM NEWS IN BRIEF FSUOGM

According to the International Energy In Azerbaijan, the third-largest oil According to him, Azerkontrakt buys
Agency, around 40% of Turkmenistan’s producer in the former Soviet Union after natural gas from SOCAR, BP, and other
current methane emissions could be easily Russia and Kazakhstan, production has companies on various terms, sells it to
captured at nearly no cost and even used dropped to about 700,000 barrels per day electricity producers, gas distribution
for export. This could bring much needed in 2021 from nearly 1 million barrels per networks at a wholesale price, and the price
additional hard currency to the struggling day a decade ago. According to Shakhbazov, of gas varies depending on its producer.
Turkmen economy. Turkmenistan was not the country expects to maintain stable
among the more than 100 countries that production in the coming decades as new
signed the Global Methane Pledge, which oil projects are launched in the Caspian SOCAR increases oil
aims to reduce methane emissions by 30% region.
by 2030, signed at the ongoing COP26 exports by 2.3 times via
global climate summit in Glasgow.
“Methane emissions being detected SOCAR denies that Georgian Baku-Novorossiysk pipeline
by satellite surveillance in Turkmenistan
represent a very significant loss of value that consumers pay less for gas The State Oil Company of Azerbaijan
could be monetised. Measures to contain (SOCAR) exported 837,930 tonnes of oil
leaks are usually not too expensive and than Azerbaijani ones via the Baku-Novorossiysk oil pipeline, the
could be profitable,” Hamilton wrote. system of the Russian company Transneft,
“The leak fixes like replacing worn-out Azerbaijan state oil company SOCAR has in January-October 2021 according to the
valves or rebuilding compressor engines refuted social media claims that it is selling Central Dispatch Centre of the Fuel and
are often relatively cheap and the financial gas to neighbouring Georgia at a cheaper Energy Complex of the Russian Energy
gain from reducing need to flare or vent gas price than it sells to domestic consumers. Ministry. This was 2.3 times more than in
by investing in building more of already "There are discussions on social networks January-October 2020.
existing infrastructure like processing, that allegedly the price of gas sold to the According to the report, 169,560 tonnes
storage, and pipeline capacity might offset population in Azerbaijan is higher than the of Azerbaijani oil was transported via this
the costs, especially when there’s a buyer cost of gas sold to Georgia by SOCAR. It is pipeline in October alone. Some 358,800
for the additional gas, for example China or alleged that tariffs for 1,000cm of natural tonnes of Azerbaijani oil were transported
Russia,” he added. . gas in the domestic market are respectively via the Baku-Novorossiysk oil pipeline in
$70.5, $118 and $147, while the price for gas January-October 2020.
exported to Georgia is only $92. According SOCAR and Transneft have signed an
Azerbaijan says oil prices to other information disseminated in agreement to transport over 1mn tonnes of
social networks, associated gas supplied to
oil through the Baku-Novorossiysk pipeline
around $60-70 per barrel SOCAR free of charge by BP from Azeri- in 2021. In 2020, SOCAR transported a
Chirag-Guneshli can satisfy 40% of demand
total of 613,290 tonnes of oil through this
acceptable in the country," Ibrahim Ahmadov, Deputy pipeline.
Head of the Public Relations and Event

Azerbaijan says it will support OPEC + Organization Department of SOCAR said
producers' plan to increase daily crude oil in a statement. Kazakh energy ministry
production by 400,000 barrels in December. According to him, the cost of gas
Energy Minister Parviz Shahbazov told supplied to Georgia is currently much supports plans for further
Bloomberg: “We believe that this would higher than the indicated price and the
be the most optimal solution to maintain wholesale price for exported gas is oil output increases
stability,” adding that this would prevent calculated according to a pre-agreed
market volatility. formula. Kazakhstan’s energy ministry said on
The next meeting of the ministers of "The costs of gas distribution networks November 2 that it supports plans to
the OPEC countries and the organization's are added to this price, and as a result, continue gradual increases in oil output by
partners will be held on November 4. the tariff that is currently in force for the the members of the global OPEC and non-
According to Shahbazov, any decision population of Georgia is added up - $180 OPEC pact, Reuters reported.
to increase production should be based per 1,000cm of gas. This is twice as high as Kazakhstan's oil production quota
on economic reasons and careful market that $92, which they write about in social under the global OPEC+ pact has been
research. While the recent high prices for networks. Wholesale and retail prices for set at 1.540mn barrels per day (bpd) for
natural gas in Europe have increased the commercial facilities in Georgia are higher November.
demand for petroleum products, the growth and amount to $190 and $360 per 1,000cm, OPEC+, consisting of OPEC members
in oil production of the producing countries respectively. And the cost of exporting and other major oil producers such as
does not exceed 300,000-400,000 barrels per natural gas to other countries is even Kazakhstan and Russia, agreed to cut oil
day per quarter, he said. higher." output in April 2020 by 9.7mn bpd. The cut
According to the minister, oil prices The SOCAR representative also said was later gradually relaxed.
in the region of $60-70 per barrel can be that Azerkontrakt has been selling gas to The group is set to meet on November
acceptable both for Azerbaijan and for the consumers in the domestic market since 4 to discuss further decisions and market
world economy. Meanwhile, on the market, this year, and this issue has nothing to do conditions.
crude oil prices are holding above $80 per with SOCAR. According to him, last year
barrel. BP transferred 2.2bcm of associated gas to
“We don't need prices that are too high,” Azerbaijan: "Domestic gas consumption in
he said. “Prices may be a little high today, Azerbaijan in 2020 amounted to 12bcm.
but as you can see, OPEC+ is increasing That is, associated gas from Azeri-Chirag-
production every month. I think it will Guneshli is not 40% but 18% of total
affect the market." domestic consumption."

Week 45 10•November•2021 www. NEWSBASE .com P15