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2040 according to the IEA, accounting for circa 30% of the global growth in gas trade over the next 20 years. The national Chinese program to reduce emissions will lead to a threefold increase in gas consumption in the PRC; demand in 2040 will be 708bcm and China will be forced to import gas, as its own production to meet so rapidly growing demand is not enough, says the IEA.
Russia's natural gas giant Gazprom has almost completed the construction of the underwater part of its Turkish Stream pipeline that runs through the Black Sea and will reach the Turkish coast, Vedomosti daily reported on November 16 citing the progress of pipe laying contractor Pioneering Spirit. Reportedly Turkish Steam is as close as 10km to Turkish coast and could be unveiled on November 19. Connections to on-shore infrastructure will still have to be carried out. Turkish Stream is planned to become operational by the end of 2019 and its sister pipeline to the north, Nord Stream 2, shortly after that. Turkish Stream, sometimes referred to as TurkStream, will be made up of two lines, each with an annual capacity of 15.75bn cubic metres. Gas that flows through the first line -- already completed -- will be used for Turkish domestic needs. Turkish Stream, costing an estimated $8bn-$10bn, will form a key part of the Kremlin’s plans to bypass Ukraine with gas deliveries. Ukraine is currently the main transit route for Russian gas flowing to Europe.
In October exports of Russia's gas giant Gazprom to Europe and Turkey declined by 7% due to warm weather in Europe, Reuters estimated on November 2. In January-October 2018 overall Gazprom's exports to its largest markets increased by 4.4% to 164bn cubic meters (bcm) of gas, according to the company. While in January-October extraction of gas increased by 6.3%, in October alone gas output slipped by 1.1% year-on-year. The company has been posting record-high export numbers due to harsh weather conditions in Europe, but in the second quarter Gazprom's revenues declined by 14% quarter-on-quarter due to seasonally lower gas sales and weaker spot prices.
More than 200 km of the Nord Stream 2 – or almost 20% of the 1,200 km pipeline -- has been laid in German and Finnish waters of the Baltic, Paul Corcoran, CFO of the Nord Stream 2 operating company, told a Berlin gas conference Thursday, according to S&P Global Platts. He said the project is on track to be completed one year from now and predicted that flows will ramp up gradually in through 2022.
Integrated oil companies, the Federal Anti-Monopoly Service (FAS) and the Ministry of Energy signed an agreement on freezing wholesale and retail motor fuel prices on 7-10 November, according to Deputy Prime Minister Dmitry Kozak, Vedomosti reports. Kozak said that motor fuel prices had stabilised and would grow in line with inflation until March 2019, according to the paper. Following the VAT increase in 2019, motor fuel prices are supposed to increase 1.7%, while thereafter, they are going to grow in line with inflation. The announced agreement between oil companies and the government is in line with the previously discussed agreement.
Russia's natural gas giant Gazprom will increase supplies to Austrian OMV by 1bn cubic meters annually, extending the contract with OMV through 2040. In January-September 2018 Gazprom supplied 8.8bcm of gas to Austria. OMV is the first buyer of Gazprom’s gas in Europe to strike such a long-term deal. This reinforces the company's status of Gazprom's main ally in Europe, being one of the most vocal supporters of the contentious Nord
85 RUSSIA Country Report December 2018 www.intellinews.com