Page 12 - FSUOGM Week 33 2022

FSUOGM NEWS IN BRIEF FSUOGM

Kazakhstan’s trade Russia’s TMK has in the past produced 646,200 (a decrease of 6.4%), straight-run
gasoline (naphtha) was 169,100 tonnes
some CRA grade tubing, but it required
turnover with China grows steel billets from Europe to process. (a decrease of 31.6%), diesel fuel equaled
“With Iran’s offshore gas fields needing
1mn tonnes (down 26.2%), lubricating
by around one third to relatively high volumes of these super- oils amounted to , tonnes (down 37.8%),
specialised grades, it is difficult to see how
petroleum coke was 97,200 tonnes (down
$11.3bn in 1H22 Gazprom can provide any well assistance to 36.8%). The decline in the production of
oil products was due to the planned repair
develop these fields quickly,” Rystad added.
Kazakhstan’s trade turnover with China China is a potential supplier of CRA grade work that was carried out at the Baku Oil
grew 36% y/y to $11.26bn in the first tubing and Super 13Cr, but Chinese products Refinery (part of SOCAR) from April 4 to
half of this year, according to the Kazakh in this area are known to have suffered from May 27.
Economic Research Institute (ERI). leakages and other issues in the past.
Both the import figure of $4.63bn and Gazprom’s deal with NIOC also includes
export value of $6.63bn were recorded as pressure enhancements at South Pars gas Russian MP hints gas
all-time highs, the institute said. It also field and the development of six oilfields.
noted that the trade volume was three times supply to Moldova might be
higher than what was seen in 1H16.
Oil deliveries drove the export gain. Azerbaijan increased gas discontinued
They were up 3.8-fold y/y to $1.6bn. Other
exports combined expanded by 10.5% y/y. exports from Shah Deniz by There is no reason for Russia to supply
Rapid import growth was attributed to Moldova with natural gas unless the bills are
dynamic growth in the supply of Chinese 23% in January-July paid on time, the first vice-chairman of the
machinery and equipment, computers and State Duma Committee on Energy, deputy
other high-tech products. The export of Azerbaijani gas from the Shah of the Liberal-Democratic Party of Russia,
In November last year, there were Deniz field in January-July was 12.02 bcm, Valery Seleznev, stated in a Telegram post.
complaints from Kazakhstan that its which is 23% higher than the same period His statement comes in the context
exporters were not being given enough last year, the State Statistics Committee said of the announcement made by the CEO
transit logistics priority by China, meaning in a statement. The share of gas exports of Moldovagaz, Vadim Ceban, that his
there were snarl-ups at the border with from the Shah Deniz field accounted for company will not be able to pay its bills to
the exporters unable to get their goods on 52.4% of the total volume of gas transported Gazprom for the gas to be consumed in
the move. One consequence was said to be through the main gas pipelines in the August.
plummeting Kazakh food exports to China. reporting period. "Given the anti-Russian policy
In general, from January-July, the main consistently adopted by Moldova since
gas pipelines of Azerbaijan transported 22.9 the first days of the ‘special operation’ in
Gazprom’s $40bn deal with bcm gas (an increase of 15.8%). Gas from Ukraine, it would be good to hear at least a
the Shah Deniz field is currently exported to sound official argument why Russia should
Iran ‘could be undermined Georgia, Turkey, and Europe. The export of supply gas against debt," Seleznev argued.
Seleznev stated that Russia has no
Azerbaijani gas from the Shah Deniz field in
by Russia’s lack of 2021 amounted to 17.6 bcm (+ 43.6% of the guarantee that the debt will be paid later, if
2020 figure).
Moldova does not pay on time.
metallurgical supplies' the Shah Deniz contract is currently led by BP the pro-Russian separatist region
However, some arrangements involving
The equity participation of the parties in
Gazprom’s $40bn deal with National Iranian (operator, 29.99%) and followed by SOCAR Transnistria could be found, Seleznev
Oil Company (NIOC) to assist with projects (21.02%), LUKOIL (19.99%), NICO (10%), suggested. Notably, Transnistria owes some
including the development of the Kish and TPAO (19% ). Gas production from the Shah $8bn in unpaid gas bills.
North Pars gas fields could be undermined Deniz field began in December 2006 "It would be a possibility if Chisinau was
by Russia’s lack of required metallurgical prepared to give public guarantees that it
supplies, according to a warning from would let Transnistria decide for itself. And
consultancy Rystad Energy said this week. SOCAR reduced production if not, then ask for material support for the
Russia and Iran are both burdened purchase of our gas from those who love
by sanctions on their energy industries. of gasoline by 6.4%, diesel them so much," he said on Telegram.
One consequence is that no European or After his initial announcement that
Japanese suppliers can provide oil country by 26.2% in January-July Moldovagaz will not be able to pay its up-
tubular goods (OCTG) or steel goods to front gas bill for August, Ceban later explained
either country. The production of petroleum products in the size of the financial needs of the company,
Assessing Russia’s deficit in metallurgical Azerbaijan decreased by 11.6% (~$1.27bn) caused by the low regulated gas prices
products, Rystad was reported as predicting in January-July, compared to the same compared to the gas import prices.
that Russian suppliers would require period last year, according to the State According to him, the financial deficit of
“considerable time and investment” to be Statistics Committee. According to Moldovagaz in August will amount to over
able to deliver high-alloy grades. statistics, during the specified period, the MDL285mn (€14mn) due to the incomplete
“The corrosive nature of Iranian oil and production of jet fuel was 309,200 tonnes tariff coverage of the costs associated
gas reserves requires high-grade piping for (an increase of 6.1%), heating oil was 66,400 with the purchase, supply, transport and
extraction, which neither Russia or Iran tonnes (an increase of 2.6 times), and oil distribution of natural gas.
have the capacity or capability to produce in bitumen was 228,200 tonnes (growth by
the short term,” Rystad senior vice president 15.8%).
of analysis James Ley was quoted as saying. The production of motor gasoline was

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