Page 11 - GLNG Week 27
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GLNG ASIA GLNG
Iran resumes gas
exports to Turkey
POLICY IRAN has resumed the export of natural gas to “The export of Iranian gas to Turkey is con-
Turkey three months after the cross-border pipe- tinuing like before.” The natural gas pipeline was
line between the two countries was damaged in damaged in an explosion that the Kurdistan
a militant attack, Mohammad Askari, a spokes- Workers’ Party (PKK) claimed was the result of
person for the National Iranian Gas Co. (NIGC) an attack that it mounted. Turkey and Iran view
told IRNA on July 1. the PKK as a terrorist group.
Top Iranian officials raised concerns after Iran exports around 10bcm per year of gas to
Turkey failed to move quickly to repair the Turkey, though the flow of natural gas to Turkey
14bcm per year Tabriz-Ankara gas pipeline. via the pipeline has been interrupted around a
Analysts speculated that Turkey was attempt- dozen times since it became operational in 2001.
ing to use the situation – which also saw it import Meanwhile, Iran’s Foreign Minister Moham-
much higher volumes than usual of cheaper liq- mad Javad Zarif visited Turkey in June to discuss
uefied natural gas (LNG) – to pressure Iran for a a variety of topics. He was quoted by the Tehran
future price cut in gas supplied under contract. Times as saying: “I deemed it necessary to have
“With the completion of repairing the gas a trip to Turkey to discuss economic relations,
pipeline for export in Turkish soil, the exports energy cooperation, and regional issues.”
have resumed,” Askari was reported as saying.
Shell aims to exit major
Indonesian gas block
COMPANIES INDONESIAN upstream regulator SKK Migas 35,000 barrels per day (bpd) of condensate pro-
has confirmed reports that Royal Dutch Shell duction. Masela is estimated to hold 10.7 trillion
intends to divest its 35% stake in the giant Masela cubic feet (303.02bn cubic metres) of proven gas
gas block. reserves.
SKK Migas’ operations deputy, Julius The Asia Times had reported that Shell was
Wiratno, told The Jakarta Post on July 6 that low looking to exit the block owing to lingering dis-
oil prices and coronavirus (COVID-19) related satisfaction over the government’s demand that
development delays had prompted the compa- the development centre around an onshore ter-
ny’s exit plans. minal instead of a floating LNG (FLNG) facility
The official’s comments follow an Asia Times as originally planned.
report from June 25 that cited unnamed sources Wiratno dismissed the suggestion, noting
as saying the company was looking to raise $2bn that the “show must go on”, as the government
from the sale of its stake in the block and the had already signed a deal with the partners on
associated Abadi liquefied natural gas (LNG) Masela’s development that located the LNG plant
terminal development. on Yamdena Island.
Inpex is understood to be interested, but the “The process goes on. They cannot just pull
sources said the Japanese developer was only out like that. They have to remain committed
willing to pay around $400mn. Inpex Masela, in to their plans for this year, even if it’s at a limp-
which Inpex owns a 51.93% interest, operates the ing pace,” Wiratno said. The official, however,
block with a 65% stake. conceded that the project may need to be recal-
The acreage, located in the southeastern culated and that it had become “a wait and see
Arafura sea, is the foundation for a planned situation”.
9.5mn tonne per year LNG terminal as well as The Abadi terminal in its current form is
another 1mn tpy of local gas supply and up to slated to come online in 2027.
Week 27 10•July•2020 www. NEWSBASE .com P11
