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Energy news
Bulletine Energy 

2017 October 16 ( Monday )  10:50:42
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Sofia Ready to Implement Joint Energy Projects with Baku

Baku/16.10.17/ Turan: Sofia and Baku can establish joint activities in the expansion of the network of petrol stations in Bulgaria, President Rumen Radev said last Friday.

"We are interested in expanding cooperation with Azerbaijan in the energy sector, and we are ready for joint activities in the sphere of gasification of the domestic sector and the development of a network of filling stations in Bulgaria," Radev said in Baku, making a statement to the press jointly with Azerbaijani President Ilham Aliyev.

According to him, the project Southern Gas Corridor (provides for the creation of infrastructure for the supply of Azerbaijani gas to Europe) plays an important role in diversifying the sources of gas supplies to Southern and Central Europe.

* Note that the Bulgarian Bulgar Gas signed an agreement with the Shah Deniz consortium in 2013 to purchase annually 1 billion cubic meters (bcm) of gas within the Shah Deniz-2 project for 25 years starting from 2020. The gas will be supplied from the TAP pipeline via the Greece-Bulgaria interconnect. -12B

Reduction of Azerbaijan"s Credit Rating Does Not Hamper Process of Attracting Loans for SGC Project

Baku/16.10.17/ Turan: The total cost of developing Shah Deniz-2 and the infrastructure project Southern Gas Corridor (SGC), which provides for the delivery of Azerbaijani gas to Europe, is $ 41.5 billion, Director General of SGC Afghan Isayev said at the International Oil Summit Argus-2017 in Baku.

"At the same time, the cost of the Shah Deniz-2 project is $ 23.9 billion, the expansion of the South Caucasus Pipeline (SCP) - $ 4.7 billion, the construction of the TANAP gas pipeline - $ 8 billion, and the TAP - EUR 4.5 billion," Isayev said.

According to him, as of August 2017, the cost of the Shah Deniz-2 project was $ 16.4 billion, SCP - $ 3.8 billion, construction of the TANAP gas pipeline - $ 4.6 billion, and TAP - EUR 2.3 billion.

Isayev stressed that with the total costs of projects at $ 41.5 billion, Azerbaijan"s share is $ 11.8 billion. "The Azerbaijani side has so far spent $ 7.8 billion," he stressed.

So far, 96% of all works have been completed within the framework of the Shah Deniz-2 project, 98% in SCP, 82% in the construction of the TANAP gas pipeline, and 53% in the TAP gas pipeline.

"In addition to the financing of Azerbaijan"s share in the project, the CJSC will need to raise another $ 3.1 billion by 2020 for these purposes," Isayev said.

According to him, SGC is currently continuing negotiations with international financial institutions and commercial banks to attract loans. In particular, it is with the Asian Development Bank for $ 524 million for the Shah Deniz project, with the German Hermes agency for $ 1.5 billion for the Shah Deniz and TANAP projects, with the European Bank for Reconstruction and Development for $ 500 million, with the European Investment Bank - for $ 500 million for the TANAP project, and with four banks - for $ 750 million under the guarantee of the agency MIGA.

He also noted that the reduction of the credit rating of Azerbaijan does not create problems for the process of attracting loans for the SGC project.

* The main components of the project are: Stage-2 of the Shah Deniz project, expansion of the South Caucasus pipeline, and construction of the TANAP and TAP gas pipelines. The total length of the created gas infrastructure is 3,187 km.

Deliveries of Azerbaijani gas to Europe are expected in 2020 in the amount of 10.18 bcm. Deliveries of 6 bcm of Azerbaijani gas to Turkey are scheduled for the fourth quarter of 2018.

Date of Shipment of First Products from Star Refinery Named

Baku/16.10.17/ Turan: SOCAR Turkey Energy (SOCAR subsidiary) plans to load a vessel with the first production of the new Star refinery in Turkey on September 20, 2018, said Emin Eminov, General Director of SOCAR Turkey Energy operations.

"Starting-up and adjustment works will begin at the refinery in January 2018. Supply of electricity to the plant has already begun. The plant will start commercial activity in September 2018 and on the Day of Oilmen of Azerbaijan on September 20 the ship with the first production produced by the refinery will be loaded," said Eminov at the International Oil Summit Argus in Baku last week.

He also said that at the end of 2018 the refinery will be 100% commissioned.

According to him, recruitment of personnel for activities at the Star refinery is currently ongoing. "500 people have already been employed and by the end of the year the recruitment process will be completed. In total, 750-800 people will work at the enterprise," he stressed.

Eminov added that the plant"s activities will provide Turkey with annual savings of $ 1.5 billion on import substitution. -12B

Oil Production in Azerbaijan Decreased by 8% in January-September

Baku/16.10.17/ Turan: Oil production in Azerbaijan in January-September of 2017 amounted to 28 million 792.8 thousand tons, which is 8% less than the same period last year.

According to the State Statistics Committee of Azerbaijan, the volume of commercial oil production in the country for the reported period amounted to 28 million 755.4 thousand tons (a decline of 3.4%).

In 2016, oil production in Azerbaijan, including gas condensate, amounted to 41 million 29.5 thousand tons. This year, liquid hydrocarbon production in Azerbaijan is expected to reach 38.4 million tons, although the government expects it to be 40 million tons. -12B

Gas Production in Azerbaijan Decreased by 5.3% in January-September

Baku/16.10.17/ Turan: Gas production in Azerbaijan in January-September of 2017 was 21,091 mcm. According to the State Statistics Committee, compared to the same period last year, gas production in the country fell by 5.3%.

During the reported period, the volume of commercial gas production in Azerbaijan amounted to 13,509.7 mcm, which is 476 million or 3.4% less than in January-September 2016.

Last year, Azerbaijan produced 18,714.7 mcm of commodity gas. In the current year, commercial gas production is expected to be about 18.4 bcm. -12B