Oil & Gas News Digest

ASTANA. Sept 17 (Interfax) - Kazakhstan has the opportunity to boost supplies to Germany's market, as it positions itself as a reliable and major supplier of energy resources to Germany, Kazakh President Kassym-Jomart Tokayev said.?"Kazakhstan is ready to boost oil exports to the German market as a reliable and one of the largest suppliers of energy resources to Germany. We are counting on further support from German partners to ensure long-term and stable supplies of hydrocarbons," Tokayev said during the Central Asia - Germany summit in Astana on Tuesday.? He highlighted the importance of strengthening cooperation in the transition to alternative energy sources.?"We are open to mutually beneficial cooperation in the development of hydrogen energy," the president said.?Kazakhstan's KazTransOil plans to ship up to 1.2 million tonnes of Kazakh oil to Germany via the Transneft pipeline system towards the Adamowo-Zastawa oil delivery point in 2024. Kazakhstan transported 993,000 tonnes of oil to Germany through the Druzhba pipeline in 2023.?Kazakhstan began oil exports to Germany through the Druzhba pipeline as part of its efforts to diversify its oil export routes. The Energy Ministry said in late October that Kazakhstan might increase its oil exports to Germany via Druzhba from 1.2 million tonnes to 2 million tonnes per year, with the final volume to be determined after further negotiations.?

Localizing German oil and gas equipment production in Kazakhstan a priority?

Kassym-Jomart Tokayev believes localizing German production of oil and gas equipment and parts in Kazakhstan is a key priority, the presidential press service said.?"Localizing German production of oil and gas equipment and parts in our country is a key priority. In a nutshell, we would welcome the presence of German production in Kazakhstan to add advanced technologies to our industrial landscape," the press service quoted Tokayev as saying.?Tokayev said Kazakhstan has considerable underused potential in the renewable energy sector, which attracts many large global players. "For example, the German Svevind Group invests $50 billion in Kazakhstan. The purpose of the project is to produce green hydrogen and supply it to the European market," he said.?The next promising area is energy, Tokayev said. He said Kazakhstan has the second largest explored oil resources in Eurasia and is a large supplier of energy resources to global markets. Bearing in mind that 70% of Kazakh oil exports go to the European Union, he said the country is ready to increase its export capabilities and promote the reduction of the global shortage of energy resources.?In general, the president mentioned several promising areas of cooperation. In particular, he mentioned extracting and processing natural resources using the pragmatic formula "investment and technologies in exchange for vital resources." He said Kazakhstan's mineral resources include more than 5,000 unexplored fields, whose resources are worth trillions of dollars. "Today we are producing 19 out of the 34 rare earth materials that play a decisive role for the EU economy. As part of these efforts, the German Mineral Resources Agency (DERA) and Kazakh partners are creating a consortium to trade in the key resources. We are looking forward to the prompt practical implementation of this initiative," he said.?Tokayev also welcomed the plans of HMS Bergbau to carry out geological exploration work for the purpose of building a lithium processing plant in Eastern Kazakhstan. "Investment in this project will reach $500 million. The country's rich strategic resources provide a lot of opportunities for expanding industrial cooperation," he said?

Kazakhstan invites Germany to join project to lay power cable through Caspian?

Kassym-Jomart Tokayev has invited Germany to consider its participation in a project to lay a power cable along the Caspian seafloor.?"Our country, along with Uzbekistan and Azerbaijan, is pursuing a project to build a line to transfer green energy along the Caspian seafloor further to European countries. We invite our German partners to consider participation in this strategic project," Tokayev said.?As reported, a power cable through the Caspian will be an element of a project to transfer green energy from Central Asia to Europe via the Black Sea and the Caspian Sea.?The laying of an underwater cable via the Black Sea's seafloor, the Black Sea Energy project, is at a more advanced stage. The power operators of Azerbaijan, Romania, Georgia, and Hungary signed a memorandum in May 2024 to set up a joint venture for the Black Sea Energy project. Bulgaria is also part of the project. It includes a 1,195-kilometer long undersea cable with capacity of 1 GW to supply green electricity produced in Azerbaijan through Georgia and the Black Sea to Romania for subsequent transportation to Hungary and other European countries. Laying the cable will take three or four years. The European Commission plans to provide 2.3 billion euros for the project.?

MOSCOW. Sept 12 (Interfax) - World oil supply rose by 80,000 barrels per day to 103.5 mil- lion bpd in August, with outages caused by a political dispute in Libya combined with maintenance in Norway and Kazakhstan offset by higher flows from Guyana, Brazil and elsewhere, the International Energy Agency said in its latest monthly report.?In August, the focus was on Libya, where output fell from 1.2 million bpd in July to less than 500,000 bpd. With Libyan production hovering around those lows in early September, the crisis will have a greater impact on global supplies this month than last, the IEA said.?Global oil supply could grow 660,000 bpd in 2024 to a record 102.9 million bpd, and another 2.1 million bpd next year to 105 million bpd, the IEA said. Non-OPEC+ countries will increase production 1.5 million bpd this year and next, while OPEC+ could cut production 810,000 bpd in 2024 but increase it 540,000 bpd next year if voluntary cuts remain in place.?The IEA said in its August report also that it expected oil supply to grow to 102.9 million bpd in 2024, and to 105 million bpd next year.?It said in the September report that the global oil market might be over-saturated in 2025 if the OPEC+ alliance continues with its proposed lifting of restrictions. Even if the cuts are maintained, global oil stocks could increase by an average of 1.1 million barrels per day next year.?

BAKU. Sept 16 (Interfax) - The Azerbaijani Energy Ministry has revised its forecast for natural gas exports to Europe in 2024 down to 12.5 billion cubic meters (bcm), Energy Minister Parviz Shahbazov said in remarks at a regular ministerial meeting of the Organization of Turkic States (OTS) in Bishkek on Monday.?Earlier reports said Azerbaijan planned to export 25 bcm of gas in 2024, including 13 bcm to Europe. Thus, the forecast has been reduced by 3.8%.?"Out of the projected 25 bcm of Azerbaijani gas export this year, 9.8 bcm is to be delivered to Turkey and 12.5 bcm to Europe," the Azerbaijani Energy Ministry quoted Shahbazov as saying.?Touching on energy cooperation between Turkic states, Shahbazov said 2 million tonnes of Kazakh oil has been exported via the Baku-Tbilisi-Ceyhan oil pipeline to date, while the two countries have agreed on "gradually increasing this amount," he said.?Azerbaijan, Kazakhstan, and Uzbekistan plan to sign an intergovernmental agreement on strategic partnership in developing the generation and transfer of green energy, Shahbazov said.?Azerbaijan and Kyrgyzstan also pursue cooperation on renewable energy projects, he said.?An investment forum on energy transition for Central Asian countries to be organized on the sidelines of the COP29 conference in Baku in November should be "yet another opportunity for our solidarity for the purposes of green energy," he said.?The OTS energy ministers signed a joint communique voicing support for the establishment of an OTS coordinating committee on energy, a regional center for technology and green initiatives, and green energy corridors.?As reported, Azerbaijan exported 23.8 bcm of gas in 2023, or 5.3% more than in 2022, including 11.8 bcm to Europe, up 3.5%.The OTS members are Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, while Hungary, Turkmenistan, and the Turkish Republic of Northern Cyprus have observer status in the organization.?

YEREVAN. Sept 18 (Interfax) - Armenian Prime Minister Nikol Pashinyan does not rule out gas procurement from Azerbaijan if a transit gas pipeline is laid through Armenian territory.?"We import gas from Russia and Iran, while Azerbaijan said some time ago that Armenia may also be able to import gas from Azerbaijan if there is peace," Pashinyan said at the Global Armenian Summit in Yerevan on Wednesday.?"Such options cannot be ruled out if we imagine a transit gas pipeline laid through Armenian territory to Nakhichevan or Turkey," he said.?Gazprom is the sole supplier of natural gas to Armenia. Gazprom Armenia, a 100% subsidiary of the Russian company, is the gas-transmission system operator.?Armenia has been receiving gas from Iran since 2009. The gas is used for generating electricity, which is exported to Iran at the rate of 3 kW/h per 1 cubic meter of natural gas. Power plants participating in the program generate 4-4.5kW/h of electricity with 1 cubic meter of Iranian gas, and the excess electricity is consumed in Armenia.?Imported Iranian gas is used exclusively for the gas-for-electricity program, which is in effect until 2030.?

BAKU. Sept 16 (Interfax) - Baku and Belgrade are poised to sign an agreement to increase Azerbaijani gas supplies to Serbia in the near future, the press service of the Serbian Mining and Energy Ministry said.?Serbian Mining and Energy Minister Dubravka Djedovic Handanovic and Srbijagas President Dusan Bajatovic discussed the Banatski Dvor gas storage facility's expansion and preparations for the winter heating season at a meeting.?"In November, we will have 750 million cubic meters of gas in the Banatski Dvor facility and 163 million cubic meters in Hungary's gas storage," Djedovic Handanovic said. "We have also agreed on additional volumes from Azerbaijan, which will be formalized in the near future based on our needs," she said.?Djedovic Handanovic also said that the Banatski Dvor underground gas storage facility's active volume would be 1.5 billion cubic meters of gas by the end of 2026. "This will make a decisive contribution to energy security and stability for the next 25 years," she said.?Bajatovic said the Banatski Dvor expansion project was on schedule, the equipment had been ordered, and a construction permit obtained.?Banatski Dvor, Serbia's only underground gas storage facility, was built at a depleted gas field and went into service in 2011.?Azerbaijan plans to increase gas supplies to Serbia gradually to 1 billion cubic meters per year, Azerbaijani Foreign Minister Jeyhun Bayramov said at a press conference with his Serbian counterpart Marko Djuric in Baku at the beginning of September.?The State Oil Company of the Azerbaijani Republic (SOCAR) and Srbijagas signed an agreement on November 15, 2023 to supply of up to 400 mcm to Serbia in 2024 with the possibility of increasing these volumes each year starting in 2027.?

MOSCOW. Sept 18 (Interfax) - Uzbekistan has shown interest in the participation of Russian companies in the country's gas and chemical projects, Russian Energy Minister Sergei Tsivilyov told reporters.?"We are interested [in this] and we are in talks," Tsivilyov said in reply to a corresponding question.?The main areas of Russian-Uzbek cooperation are transportation of gas and oil from Russia, oil refining and gas production, he said.?Speaking of technology exports from Russia, Tsivilyov said, "This is not the export of equipment."?"At the end of the day, we obtain a finished product and make calculations through the value of this finished product. Take a typical oil refinery. We together get into it and together, we up- grade it. Subsequently, we have product in the form of light petroleum products that go to petrol stations. The money returns and with it, [the cost] of both sides' participation is covered. This is what the export of technology is. This is not the export of some equipment, where you deliver it, get paid for it and that's it. We are seeking to market the product and make a return on investment through the product," Tsivilyov said.?

MOSCOW. Sept 17 (Interfax) - The Russian government has approved the text of an intergovernmental agreement with the Republic of Congo on cooperation in the construction of the Pointe-Noire-Lutete-Maloukou Trechot oil product pipeline.?Zakneftegazstroy-Prometey LLC and the National Petroleum Company of Congo, as customer, will be the companies authorized and responsible for delivering the project, according to the agreement. The companies will set up a joint venture, in which the Russian share will be 90%, while Congo will have 10%.?A 25-year build-own-operate-transfer concession deal will be concluded with a joint venture with a guaranteed pumping tariff, which will ensure the pipeline's utilization and return on investment.?Russian Ambassador to the Republic of the Congo Georgy Chepik said earlier that the pipeline would run between the African country's biggest cities, Pointe-Noire and the capital Brazzaville.?The agreement states that if a potential dispute between the parties cannot be resolved through negotiations, then the Russian party may choose to refer it to the Dubai International Arbitration Centre (UAE) in accordance with the DIAC Arbitration Rules 2022 or to UNCITRAL ad hoc arbitration. The arbitration will be administered by the Dubai International Arbitration Centre. The arbitration takes place in the UAE in both cases.?Alexander Ilyin is the owner of Zakneftegazstroy-Prometey LLC, according to the Unified State Register of Legal Entities.?

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