Oil & Gas New Digest

PETERSBURG. Nov 1 (Interfax) - The creation of an electronic gas trading platform in Turkey might be completed in 2024, Turkish Energy and Natural Resources Minister Alparslan Bayraktar said at a plenary session of the St. Petersburg International Gas Forum on Wednesday. "We're speaking of setting up a gas hub at the Istanbul financial center. All of this is a good opportunity and an incentive for all parties, including traders, brokers, and other actors. If we work together with our partners along this avenue, I think we could complete this initiative in 2024," Bayraktar said. Launching a new gas trading mechanism could take about one year, and Turkey is currently continuing negotiations on setting up the platform with PJSC Gazprom and other partners, he said. Russian Energy Minister Nikolai Shulginov said that the establishment of a gas hub in Turkey is "no more than just an alternative platform." "There's been a proposal, including from the Russian side, as to what should be done at this platform and what results should be received. All of this is still being worked on," he said.

As reported, Russian President Vladimir Putin proposed in October 2022 that additional gas pipelines be laid from Russia to Turkey along the Black Sea floor and a gas hub be created near the EU border as an alternative to other centers forming gas prices in Europe. Gazprom reported that it was working jointly with its Turkish partners on setting up a gas hub in that country. Russia has presented its concept of the facility, as well as the parameters and principles for its operation.

MOSCOW. Oct 27 (Interfax) - The Russian Central Bank, following in the footsteps of the Ministry of Economic Development, has abandoned forecasting prices for Urals oil and switched to forecasting prices for Brent. In its medium-term forecast published on Friday, the Central Bank sets prices for Brent oil in 2023 at $83 per barrel, $80 in 2024, $75 in 2025, and $70 in 2026. As reported, Russia's Ministry of Economic Development (which started forecasting Brent instead of Urals in April) predicts the price of Brent oil in 2023 will be $83.5 per barrel, then $85 in 2024, $80.2 in 2025, and $76.2 in 2026.

ST. PETERSBURG. Oct 31 (Interfax) - Gas consumption in Russia is growing in stable temperature conditions due to the increase in market volumes, Vitaly Markelov, Deputy Chairman of the Board of Gazprom, told reporters on the sidelines of the St. Petersburg International Gas Forum. "Consumption in the country is growing thanks to gasification, connecting new consumers, and so on. Moreover, we see it. At [similar] temperature levels, we have a significant increase in consumption," he said. The average air temperature in Russia in October 2023 was approximately at the level of October 2022 and one degree higher than the norm, the System Operator of the Unified Energy System of Russia said. Earlier, in September 2023, the air temperature in Russia was unprecedentedly warm; about two degrees Celsius above the climate norm and three degrees higher than in September 2022.

ST. PETERSBURG. Oct 31 (Interfax) - The average temperature in the zone of the Unified Gas Supply System of Russia in the 2023-2024 heating season is expected to be at the level of the previous heating season, Vitaly Markelov, Deputy Chairman of the Board of Gazprom, told reporters. The executive board of PJSC Gazprom last Thursday considered the readiness of the Unified Gas Supply System (UGSS) facilities to pass through the period of peak loads at the end of 2023 and beginning of 2024, and the measures necessary to ensure uninterrupted gas supply to consumers in the winter. "I have reported the weather expectations to the board. There will be no fundamental changes, [we expect the temperature] to be as it was. There are fluctuations from half a degree minus to one degree plus. That is, we expect the same winter as last year," Markelov told reporters on the sidelines of the St. Petersburg International Gas Forum

PETERSBURG. Nov 1 (Interfax) - Gazprom and the Kyrgyz government have signed a memorandum on cooperation in developing the country's gas industry, the company said. The document is aimed at long-term interaction in the gas sector and at studying possible options for cooperating in the electric power industry, Gazprom said in a statement. Gazprom head Alexei Miller and Kyrgyz Energy Minister Taalaibek Ibraev signed the memorandum during a working meeting. "The sides discussed the readiness of Kyrgyzstan's gas transport and gas distribution systems for operation during the fall and winter period. It was noted that Gazprom Kyrgyzstan had completed all technical activities at industrial sites," it said. Moreover Alexei Miller and Kazakh First Deputy Prime Minister Roman Sklyar have signed an agreement on strategic cooperation. The document is aimed at developing cooperation in supplying, transporting, processing, and the exploration and production of natural gas.

MOSCOW. Oct 30 (Interfax) - Novatek boosted net profit to Russian Accounting Standards (RAS) 2-fold year-on-year to 404.391 billion rubles from 185.587 billion rubles the previous year, the company said in a financial report. Revenue decreased 8.2% to 574.416 billion rubles, cost decreased 6% to 326.221 billion rubles, and gross profit was down 10% to 248.195 billion rubles. Income from participation in other organizations dropped 30% to 134.392 billion rubles, and other income decreased 28% to 269.18 billion rubles. Profit before tax increased 2.5-fold to 470.106 billion rubles.

MOSCOW. Nov 1 (Interfax) - Russian gas giant Gazprom and the government of Uzbekistan have signed a strategic memorandum on cooperation in the energy sector under which they intend to develop cooperation on supplies and transportation of gas, as well as geological exploration for and production of hydrocarbons. The document was signed by Gazprom CEO Alexei Miller and Uzbek Energy Minister Jurabek Mirzamakhmudov, the company said in a press release. At their meeting, they also discussed current and future cooperation. "Specifically, they talked about supplies of Russian gas to Uzbekistan through the territory of Kazakhstan, which began in October of this year," Gazprom said. "It was noted that the specially allocated route based on the Central Asia-Center system of trunk gas pipelines is very important for stable energy supplies to consumers in Uzbekistan, particularly in the fall-winter period," the company said.

ASHGABAT. Oct 30 (Interfax) - Turkmenistan expects to export about 5 billion cubic meters of gas to Russia in 2023, as specified in the previously signed contract with Gazprom, the deputy CEO of state gas company Turkmengaz, Murat Archayev said. "The Turkmen side, within the framework of its obligations under the contract, fulfills them fully, year after year. The contract is being implemented in full and the expected volume of exports of Turkmen natural gas to the Russian Federation for this year is also planned at 5 billion," Archayev was quoted as saying by Turkmenportal at a press conference following the OGT2023 international conference in Ashgabat. Turkmengaz signed a five-year gas supply contract with Russian gas giant Gazprom in 2019. It expires on June 30, 2024.

ST. PETERSBURG. Oct 31 (Interfax) - Russia has managed to avoid a decline in oil production due to a lack of technology after the departure of major foreign vendors, First Deputy Energy Minister Pavel Sorokin said. "We have not lost extraction, production or refining for technological reasons. In other words, where there has been a drop or change it was voluntary, because we are participating in various international projects and operations such as OPEC+," Sorokin said at a meeting on the technological development of gas giant Gazprom at the St. Petersburg International Gas Forum. "We have not had technological reasons for losses in production and refining. This speaks to one thing, that we have generally effectively found either an alternative with our partners or substitutions are being made," Sorokin said. "Companies need time to adapt, but at the same time before February 2022 many of our companies had a fairly large amount of available capacity - a reserve was created for the domestic market that, unfortunately, was not realized, because for companies participating in international trade and competition it was often more advantageous to use western technologies, like in the whole world, because they are the most competitive - you know what you're getting, they're tried and tested. But, unfortunately, this is not consistent with the goals of technological sovereignty," Sorokin said. "These available capacities have now suddenly started to be deployed and utilized because now companies are already forced to look for alternatives. And it turns out that many companies make a competitive product," he said. "For the main indicators we have covered all critical areas. A lot of work will still be needed, we shouldn't reassure ourselves that now everything is alright with complex processes, complex products," Sorokin said. A lot of work needs to be done in seismics, control and measuring instruments, high-temperature sensors, and software and hardware systems, he said. "But in all these areas it is impossible to do it in six months, a year or even two. More time will be needed, but we've begun the processes," Sorokin said.