Greater Caspian Region Weekly Overview - June 28, 2015
Iran
Iran to invest $10 B to develop gas network in 9 months
Iran plans to invest $10 billion to develop the cross-country pipelines and gas network by the end of current fiscal year, which will end on March 20, 2016.
Managing Director of the National Iranian Gas Company Hamid Reza Araghi said on June 28th that the investment package in pipeline projects includes $4.7 billion worth gas network projects to supply 1.5 million citizens with natural gas. Nowadays, about 85 percent of Iranians access to gas so far.
He said that some $1.8 billion worth of pipeline projects in Iran’s southeastern regions will be constructed to deliver gas to industry and petrochemical plants.
According to his statement, Iran’s priority is construction of 6th cross-country pipeline, aimed to deliver gas to western regions as well as Iraq. This pipeline, with 110 million cubic meters per day (mcm/d) of gas transit capacity is expected to cost $2.5 billion.
Iran will also invest $1.3 billion in gas compressor equipments and developing other pipeline projects by March 2016.
Iran adds 2 new rigs to South Pars 13th phase
Iran added 2 new “progressive rigs” to triple drilling pace in South Pars gas field’s Phase 13.
Until now, this phase is developed by 58 percent and 38 wells have been drilled so far.
Pars Oil and Gas Co. announced on June 28th that “the super rigs will start digging in sections C and B of Phase 13. This phase is divided to for sections, A, B, C and D.
Some 11 rigs will be drilled in this phase.
Phase 13 would produce 50 mcm/d of gas, 80,000 barrels of gas condensate per day, as well as one million ton of ethane per year.
Iran deceased CNG price
Iran decreased compressed natural gas (CNG) price by 17 percent to 14 cents per kg on June 24th.
According to Shana, currently the price of one cubic meters of CNG equals to one third of a liter of gasoline.
Iran consumes about 19 to 20 mcm/d of CNG and wants to encourage citizens to change gasoline by CNG as their vehicle’s fuel.
Iran consumes 41.7 bcm during last three months
Iran consumed 41.7 bcm (excluding flaring and gas re-injections) of gas during the first three months (93 days) of current fiscal year, started on March 20.
Some 16.503 bcm of gas was delivered to power plants, which indicates 2.5 bcm increase compared to the same period in last year.
Iran also supplied $8.773 bcm to industrial sector, while 16.458 bcm of natural gas was delivered to housing sector.
Delivering gas to industrial sector increased by 3 mcm/d, while to housing sector decreased slightly.
Iran drilled 44 wells in last three months
The managing director of Iran’s Drilling Company announced on June 22 that 44 oil and gas wells were drilled during last three months (from March 20 to June 22). The number of drilled wells indicate a 25 percent increase compared to the same period in the last year.
In total, 95,600 meters wells were drilled by 73 rigs during last three months.
Iran ready to develop pipeline projects abroad
Managing Director of Iran’s National Gas Company Hamidreza Araghi said on June 22th that Iran is ready to develop other countries’ gas network and pipelines.
According to his statement, Iran became 100 percent self-efficient in this sphere and currently, all needed equipments are produced domestically.
Iran has experience to develop pipelines in Iraq, while an Iranian company would construct Iran-Oman under-water gas pipeline.
GECF leaders to meet in Tehran in November
The leaders of the Gas Exporting Countries Forum (GECF) are scheduled to convene in Tehran on November 23, IRNA news agency reported on June 23th.
The GECF has 18 permanent and observing members and its permanent headquarters is in Doha, Qatar.
Iran, Russia, Qatar, Algeria, Bolivia, Egypt, Equatorial Guinea, Libya, Nigeria, Trinidad and Tobago, Venezuela, Peru, the United Arabic Emirates and Oman are the permanent members.
The Netherlands, Kazakhstan, Iraq and Norway are observing members.
Iran has also invited the UAE to the summit.
Azerbaijan
Russia ready to export gas to Azerbaijan
Russia says it is ready to export gas to Azerbaijan by the end of current year.
Russia's energy giant Gazprom could begin gas deliveries to Azerbaijan as early as by the end of 2015, the company's CEO Alexei Miller said on June 26th.
"Our colleagues from Azerbaijan have asked us to begin deliveries of Russian natural gas as soon as possible," Miller said at a news conference in Moscow.
"We are talking about deliveries on the basis of a mid-to-long-term contract in the amount of several billion cubic meters annually. The deliveries could start before the end of this year," Miller said.
Azerbaijan clarifies gas import from Russia
Azerbaijan announced that this country has sufficient volumes of gas to fully meet the domestic demand and provide the sphere of industry, power plants and consumers in the Nakhchivan Autonomous Republic as well and no need to import Russian gas.
Nizameddin Guliyev, spokesperson of the State Oil Company of Azerbaijan (SOCAR) told Trend on June 23th that during the meeting of SOCAR President Rovnag Abdullayev with the head of Russia’s Gazprom, Alexey Miller at St. Petersburg International Economic Forum, there were no discussions about the gas supply to Azerbaijan for meeting the country’s domestic demand.
"The Russian side took an interest in SOCAR’s position on gas supplies to the methanol plant under Azerbaijani AzMeCo company during a meeting between Abdullayev and Miller,” Guliyev said. “Taking into account that this is the Azerbaijani company, Abdullayev expressed his positive attitude on this issue and even voiced readiness to deliver the company's infrastructure for gas supplies from Russia to this plant."
AzMeCo is a private company. While conducting the design and construction work, the owners should have determined in advance a source of purchasing the raw materials. But this was not done.
AGRI project member countries ink joint declaration
Azerbaijan, Georgia and Romania signed a Joint Declaration on June 24 to progress with AGRI, the proposed project to transport Azerbaijani gas to Romania and Central Europe.
During the meeting also attended by BP officials in Bucharest, ministers discussed the position of member countries, final results of the feasibility study, and financing opportunities for the project.
‘Energy Minister of Azerbaijan Natig Aliyev spoke about socio-economic importance of AGRI project. Georgia’s Deputy Energy Minister Mariam Valishvili informed on importance and support for AGRI project’ SOCAR wrote on Wednesday after the meeting.