Page 6 - AsianOil Week 37 2022

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Asia-Pacific contract activity sees

slump in August

PROJECTS & OIL and gas contracts in the Asia-Pacific region In terms of contract by segments, the
COMPANIES slumped 40% month on month in August, upstream sector accounted for 43 contracts,
according to data results unveiled by GlobalData, while the downstream and midstream sec-
China led activity during with only 97 new deals finalised. tors accounted for 21 contracts each. The
the month. This also represents a 42% drop in the majority of contracts related to procurement,
12-month average of 166 contracts monthly. 58, followed by design and engineering, and
China led the activity last month, with 24 con- operations and maintenance, with 24 and 19
tracts signed or a quarter of the total. In second respectively.
place was India, with 23 contracts, and Australia, Contracts were in comparison flat in July,
with 134 contracts. but down 7% compared with the average for the
Based on the 12-month moving average, previous 12 months. China likewise led activity,
India was in first place with 53 contracts, fol- with 61 contracts, followed by India with 34 and
lowed by China with 48 and Australia with 15. Australia with 13. ™

Talks under way on multiple projects as

Russia races to expand exports to Asia

PIPELINES & WITH European exports sharply down this year, Siberian gas from Europe to Asia, a strategically
TRANSPORT the issue of expanding Gazprom’s export options significant amount. President Vladimir Putin
to the east has become critical. Of the several recently stated that all parameters of the contract
Expanding export options under active discussion, China and now had been agreed to, including pricing structure,
options to Asia is a Pakistan are figuring prominently, BCS GM said so a signing indeed could be imminent.
key strategic goal for in a note. – Deliveries via the Power of Siberia 1 pipe-
Russia. Speaking with reporters on the sidelines of line will reach 20 bcm this year vs. a 15 bcm tar-
high-level meetings in Uzbekistan, Deputy PM get in the contract. With the Kovykta field due
Alexander Novak was optimistic regarding the to be tied into the system later this year, Chinese
outlook for redirecting Russia’s gas exports from exports should grow sharply again in 2023, and
European to Asian counties. the 38 bcm 2025 target may be reached early,
Gazprom needs new outlets as European according to BCS GM.
export decline sharply. With Nord Stream 1 and – Construction of a 1,100-km, 12.4 bcm per
Yamal-Europe completely shut down now, and year gas pipeline within Pakistan will begin
one of two key entry points to Ukraine now all soon with Russian participation. This pipeline
closed, exports to Europe, including Turkey, could carry re-gasified Russian LNG from the
may fall to c100bn cubic metres this year, and to port of Karachi to northern Pakistan. Discus-
perhaps 80 bcm in 2023, analysts BCS GM said sions on such supply agreements are apparently
in a note. underway.
Thus expanding export options to Asia is – A Russia-Kazakhstan-Uzbekistan-Afghan-
a key strategic goal for both Gazprom and istan-Pakistan gas pipeline is being discussed.
Russia as a whole. Novak made several com- This line would allow Russia and Uzbekistan to
ments on these issues during the Shanghai send gas directly to Pakistan, assuming security
Cooperation Organization (SCO) summit in guarantees for transit can be arranged. BCS GM
Uzbekistan: reports there are no estimates of potential vol-
– The Power of Siberia-2 contract could be umes yet, but the bank reckons they are at least
concluded in the near future. This contract 20 bcm, and with an extension of the line south
holds the prospect of redirecting 50 bcm of West to India at least a possibility. ™

P6 www. NEWSBASE .com Week 37 19•September•2022