[Premium] Gazprom Pursues Turkish Talks, Iran Deals
Gazprom has begun negotiations with Turkey for the route of the second line of its TurkStream pipeline project in Turkey, Gazprom deputy CEO Vitaly Markelov said at a press conference May 14.
The Russian gas giant completed the offshore section of its first line April 30; it will be connected to the Turkish grid very close to Black Sea shores. But the second line is projected to supply European markets via Turkey; before reaching Greece, about 180km of pipe will need to be laid onshore Turkey.
Markelov named Greece, Italy, Bulgaria, Serbia and Hungary among potential markets. Each of the two TurkStream lines will have 15.75bn m3/yr capacity.
Gazprom eyes 1% production growth
Markelov also said that Gazprom plans to increase gas production only by 1% to 478.5bn m3 in 2018, following its 12.4% year on year increase in 2017.
Gazprom plans to start building a new 45bn m3/yr gas process plant at Ust-Luga (Leningrad region) by end-2018 that will receive gas produced in the Yamalo Nenets region of western Siberia. The new plant will process methane for the Baltic LNG plant, also planned at the port of Ust-Luga. Roughly 15bn m3/yr gas should suffice for that planned 10 mt/yr LNG complex, while the remaining 30bn m3/yr is expected to be exported via the planned 55bn m3/yr Nord Stream 2 (NS2) gas pipeline to Germany, added Markelov.
German economy minister Peter Altmaier is due in Moscow later May 14 for talks about NS2, and about securing a pledge from Russia to keep some gas transiting Ukraine.
Iran deals on agenda
Markelov told reporters that Gazprom together with the National Iranian oil company (NIOC) is finalising a contract relating to four fields which he did not specify. However Gazprom previously signed four memorandums of understanding with NIOC to study Farzad-A, Farzad-B, North Pars and Kish gas fields.
Gazprom Neft, 96% owned by Gazprom, also has two MoUs with NIOC to develop the Cheshmeh Khosh and Changouleh oil fields.
Iran also recently agreed with India’s ONGC to sign a contract for the Farzad-B gas field. NIOC deputy chief Gholamreza Manouchehri told reporters May 7 that new oil and gas contracts will be signed with foreign firms by this autumn.
Last week, the US withdrew from the Iran nuclear agreement, saying that it will instead impose its harshest ever sanctions on the country and punish the companies which help the Islamic Republic, prompting the French and German governments to say they will defend their companies investing there.
Gazprom also said it will invest rubles 83bn ($1.35bn) in geological exploration this year, Vsevolod Cherepanov, a member of the Gazprom management board noted. Last year it invested rubles 86.7bn in exploration, of which rubles 65.6bn in the gas sector.
Gazprom deputy CEO Vitaly Markelov (Photo credit for this and banner TurkStream route map: Gazprom)