Greater Caspian Region Weekly Overview - June 14
Iran
Iran proposes $30 Bln gas-for-good package to Turkmenistan
Iran proposed a 10-year 30 billion worth gas-for-good barter package to Turkmenistan on June 14 th.
According to package, Iran is ready to barter $3 billion worth of Turkmen gas with Iranian goods, services and technologies in 10 years.
Iran has signed agreements with Turkmenistan to import 14 billion cubic meters of gas per annum (bcm/a), but Ashgabat delivered only 6.5 in 2014.
Iran-Turkmenistan’s trade turnover was about $4 billion in 2014, but two neighbors announced that the figure would reach $6 billion in 2015.
Iran’s pipeline to Iraq borders to be completed by March 2016
Iran is accelerating the construction of 6th cross-country pipeline with 110 mcm/d of gas transferring capacity and aimed to deliver 25 mcm/d of gas to Iraq.
Ali-Reza Gharibi, managing director of Iran Gas Engineering and Development Company said the project is estimated to cost $2.2 billion and is expected to be completed by March 2016.
The 611 km in length 6th cross-country pipeline starts from South Pars gas field and is stretched to Dehgolan in Iraq borders after crossing Khozestan, Lorestan, Ilam and Kermanshah provinces.
Iran considers 8 routes to deliver gas to EU
Azizollah Ramazani, National Iranian Gas Company’s international affairs manager said that Iran considers 8 routs to deliver gas to Europe by 2020.
He said that currently Iran has a capacity to export 100 mcm/d of gas to its neighbors, but the country is planning to export 25 bcm to 30 bcm per annum (70 mcm/d to 80 mcm/d) of natural gas to Europe by 2020.
He didn’t mention the details of the routs, but said that exporting gas through Iraq-Syria as well as Turkey, Azerbaijan, Armenia, Georgia, Black Sea, etc. are under study.
Iran producing about 660 mcm to 680 mcm of gas per day currently, but it planned to increase this volume to 1200 mcm/d by 2020.
Iran eyes $100 billion investment in gas sector
Iran says it needs $100 billion of investment in its gas industry. Azizollah Ramazani, National Iranian Gas Company’s international affairs manager said on June 12th that Iran has negotiated the investment issue with tens of foreign companies during last 18 months.
Iran is developing the giant gas field, South Pars, as well as some other upstream projects alongside downstream projects including the 6 th, 7 th, 9 th, and 11th cross-country gas pipelines, respectively, will requie $2, $2, $6, and $4 billion dollars worth of investments to come on stream. Iran also considers construction of LNG plants.
BP: Iran holds biggest gas reserves in world
British Petroleum released its annual report, saying that Iran holds the biggest gas reserves in the world.
According to the report, released on June 10th, Iran’s proved gas reserves stood at 34 trillion cubic meters.
The report says that Iran produced 176.2 bcm of natural gas (Excludes gas flared or recycled) during last year, indicates a 5.2 percent increase year-to-year.
Iran’s gas consumption also reached 170.2 bcm, while it exported 9.6 bcm and imported 6.9 bcm of natural gas in 2014.
Azerbaijan
Azerbaijan’s gas production decreases by 4.7% in Jan-May
The State Statistics Committee (SSC) announced on June 12th that the country’s total gas production decreased by 4.7 percent during first five months of 2015.
The report says that some 12.2 bcm of gaswas produced in Jan-May, including 2.493 bcm in January, 2.27 bcm in February, 2.558 bcm in March, 2.4 bcm in April and 2.423 bcm in May.
The marketable gas totaled 8.476 bcm (+11.5% year-on-year) during this period.
Azerbaijan produced 29.418 bcm of gas (+0.7%) in 2014.
Iran, Iraq, Israel gas can join Southern Gas Corridor
Azerbaijani Minister of Energy Natig Aliyev said on June 12th the gas is planned to be supplied from Iran, Iraq and Israel to Europe via the Southern Gas Corridor.
On the other hand, the vice-president of SOCAR production and transportation of oil and gas Rahman Gurbanov told during an interview to KepezTV on June 8th that joining Iran, Iraq, Cyprus and Turkmenistan’s gas to the Southern Gas Corridor is possible.
It’s expected that the Southern Gas Corridor, consists of South Caucasus Pipeline, Trans Anatolian Pipeline and Trans Adriatic Pipeline be commenced by 2021 and deliver 16 bcm/a of gas to Turkey and EU in first phase.
BP: Azerbaijan’s gas reserves, production and consumption increase
BP released its annual report on June 10th, saying that Azerbaijan’s proved gas reserves increased by 0.6 percent to 1.2 trillion cubic meters in 2014.
The report says the country produced 16.2 bcm (excluding recycled and flared gas) and consumed 9.2 bcm of gas last year. Azerbaijan’s gas production and consumption increased by 4.6 percent and 7.4 percent respectively.
The country exported 7.7 bcm as well.
Turkmenistan
Turkmenistan to commence East-West cross-country pipeline
Turkmenistan planned to commence East-West cross-country pipeline to unite the fields and establish a single pipeline system inside the country.
Some of Turkmenistan’s major gas fields locate in Caspian Sea and western regions, while giant gas fields line Yoloten-Osman field (with 6 trillion cubic meters of gas reserves) and Galkynysh (with 13.1 trillion to 21.2 trillion cubic meters of gas reserves) locate in eastern regions.
The Ministry of Oil and Mineral Resources of Turkmenistan announced on June 11th that the East-West pipeline is expected to be commenced in late 2015.