Page 15 - FSUOGM Week 43 2021

FSUOGM NEWS IN BRIEF FSUOGM

and gas production. They are: Dragon Oil, a Naftogaz organized energy conference BTC pipeline oil flows
a company majority owned by Emirates in Kyiv. According to Reuters, he said:
National Oil Company of Dubai; SOCAR, “At the moment the wholesale market gas to Turkey move up in
the national oil and gas company of prices in Ukraine are higher than in Europe
Azerbaijan; and two US companies – 3 Seas and therefore it is profitable to sell gas in September but down 7% in
Energy and Helmerich & Payne, the world’s Ukraine.”
largest drilling company. first nine months
On October 20 Naftogaz general
director Yuriy Vitrenko told the Ukraine A total of 16.15mn barrels of oil were
Gas Investment Congress that Ukraine CENTRAL ASIA & SOUTH pumped through the Baku-Tbilisi-Ceyhan
could become self-sufficient in gas within (BTC) pipeline in September, up 530,000
five years. To get there, Ukraine needs to CAUCASUS barrels, or 3.4%, y/y, according to Turkish
increase domestic gas production; invest pipeline operator Botas.
in renewables, particularly biogas; and KazTransOil records decline From January to September, 148.2mn
invest in energy efficiency for housing barrels were pumped through the pipeline
and industry. Ukraine annually consumes in oil shipments through running from Azerbaijan to Turkey via
about 30 bcm of gas. Of this total, 14 bcm Georgia. That was down 7.46%, or 11.94mn
are produced by the Naftogaz production main pipeline system barrels, y/y, the company added.
unit, Ukrgazvydobuvannya; six bcm are
produced by private companies; and Kazakh state-run pipeline operator
another 10 bcm is imported, largely Russian KazTransOil said in its January-September New pipelines could
gas bought from European countries. Gas 2021 report that 30.824mn tonnes of oil
politics have always been a key issue in were transported separately via the main considerably increase Azeri
relations between Ukraine, the EU and KazTransOil oil pipeline system, down by
Russia. 918,000 tonnes from the same period last gas exports, says Fitch
Prior to independence, natural gas year.
production had actually been rising in Kazakhstan’s oil shipments have taken Volumes of gas exports from Azerbaijan
Ukraine, producing 69 bcm of gas in 1970. a hit in the past two years as a result of are considerable, and new pipelines
Post-independence, however, production coronavirus pandemic impacts. could significantly increase supplies, said
has stagnated. Although exploration has The volume of oil transportation to Douglas Winslow, director of Fitch Ratings
been slow in recent years, Ukraine has Kazakh refineries through the system of for Azerbaijan, and his colleague, senior
large reserves in the west and east of the main oil pipelines increased by 1.364mn director of the agency's sovereign bonds
country as well as in the south in Crimea tonnes compared to the indicator for department, Paul Gamble, in a statement.
and around the Azov Sea. Ukraine has January-September 2020 and amounted The total volumes of gas supplies
779 bcm reserves of natural gas on its to 12.755mn tonnes. Atyrau Oil Refinery from Azerbaijan to Europe are still small
current balance sheet, with 97% of them supplied 4.25mn tonnes of oil followed by compared to the export of Russian gas. In
currently under commercial development. PetroKazakhstan Oil Products (3.664mn 2020, gas exports from Azerbaijan in value
In September, Polish gas exploration tonnes), Pavlodar Petrochemical Plant terms amounted to slightly less than one
company PGNiG bought a Ukrainian firm (4.316mn tonnes) and CASPI BITUM third of oil exports, experts said.
to begin exploration and drilling in Western (750,000 tonnes). Production capacity for oil and gas
Ukraine. The volume of oil transportation through production in Azerbaijan is expected
Ukraine starts its winter heating season the Atyrau-Samara section of the Uzen- to remain broadly at the same level, as
this weekend with 18.7 bcm of gas in Atyrau-Samara trunk oil pipeline stood at production from mature oil fields is offset
storage – about one third less than this time 9.38mn tonnes, down by 2.46mn tonnes by increased gas production from the Shah
last year, reports Ukrtransgaz. Last Monday, from the first nine months of 2020. Deniz field and the commissioning of other
Ukrtransgaz stopped pumping gas into Transshipment of 8.201mn tonnes of oil Azerbaijani gas condensate fields in 2022.
Ukraine’s underground storage reservoirs, to the Atasu-Alashankou trunk pipeline According to the rating agency,
leaving them about 60% full. Due to record- grew by 297,000 tonnes compared to Turkmenistan possesses significant
high gas prices in Europe, Naftogaz slowed January-September 2020. gas reserves, but their exploration,
its gas purchases in recent weeks. development, and creation of export
About 3 bcm of the stored gas belongs opportunities will require considerable
to gas trading companies who park their Azerbaijani oil price rises investments and take several years.
gas in Ukraine under a bonded warehouse To bring Turkmen gas to Europe, it
legal framework. Last week, inside the EU, by 0.5% is necessary to put into operation new
companies started drawing down stocks production facilities and expand export
from EU reservoirs. The EU starts its winter The price for Azeri LT CIF crude oil pipelines, allowing it to be pumped to the
with stocks at a record low for this time of supplied by Azerbaijan to the world market European market. Turkmenistan has little
year. Reservoirs are 77% full. In Ukraine, has increased by $0.42 or 0.5%. The price of spare capacity for gas production, so it
opposition politicians warn that gas traders one barrel of Azeri Light oil was $86.76. cannot provide a noticeable response to
will move their gas to the EU this winter to The lowest price for Azeri LT CIF oil was high demand from Europe. The bulk of its
take advantage of the high prices. recorded on April 21, 2020 ($15.81), and the products are used to meet contract sales to
“We do not expect this gas [of non- maximum in July 2008 ($149.66).. China and Russia, the statement said.
residents] to be re-exported,” Yuriy In May, Fitch Ratings revised its outlook
Vitrenko, Naftogaz CEO, said yesterday at on Azerbaijan's long-term foreign-currency

Week 43 27•October•2021 www. NEWSBASE .com P15