Page 92 - RusRPTDec19

9.1.1b​ Oil and gas sector news
Gazprom started deliveries to China through Power of Siberia pipeline on 2 December​. The contract with CNPC requires Gazprom to deliver 5bcm of natural gas in 2019, 10bcm in 2020 and 15bcm in 2021, while CNPC's minimum required offtake is 85% of delivered volumes . The company expects the average price of supplies through PoS to be roughly on par with the price of Western European exports ($202-205/kcm in 2020). This is in line with our expectations. VTBC projects that deliveries through the PoS pipeline will make up 14% of all Gazprom's natural gas exports by 2025.
On January 8, Russia’s Turkish Stream pipeline will be commissioned,
Erdogan said. Running 930 km along the bottom of the Black Sea, from Russia to Turkey, the Turkish stream has a 180 km spur that will take Russian gas north into Bulgaria and the Balkans. In Moscow, Russia’s presidential spokesman Dmitry Peskov said he hoped that another Ukraine bypass pipeline, Nord Stream 2, which will run from Russia to Germany via the Baltic Sea, will be finished on time, presumably this winter.
On November 30, Turkish President Recep Tayyip Erdogan presided over a ceremony connecting pipelines will bring gas next October 3,500 km from the Shah Deniz II field in the Caspian to Italy’s Adriatic coast. ​The two pipelines are the Trans-Anatolian Gas Pipeline, across Turkey, and the Trans-Adriatic Pipeline, which is to run from Turkey to Greece, to Albania to Puglia, Italy. Initially, the pipeline will carry 16bn cubic meters per year. Erdogan said that the addition of compressors will double that volume, to 31bcm.
The Russian government has drafted rules for letting private companies extract oil in the offshore sea shelf, ​RBC business portal reported on November 26 citing the draft proposed by the Ministry of Eastern Development for the Far East and Arctic territories. As reported by ​bne IntelliNews​, offshore extraction is currently reserved for state behemoths Rosneft and Gazprom, but reports suggested that private companies could be allowed to compete for about 10% of remaining extraction licences​. Reportedly, the plan suggested by the ministry proposes to set up a state corporation managing shelf extraction (reserves of about 1.1bn tonnes of oil and 0.14 trillion m3 of gas for the 10% of licences).
92​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com