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Energy news
Bulletine Energy 

2017 October 30 ( Monday )  10:15:30
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BTK Railroad to Open New Opportunities for Export of Oil Products from Azerbaijan to World Market

Baku/30.10.17/ Turan: Today, in the village of Alyat (75 km south of Baku), the opening ceremony of the Baku-Tbilisi-Kars railway (BTK) will take place.

At the opening ceremony, in addition to the Azerbaijani President, the heads of state of Turkey, Georgia and Kazakhstan will take part.

BTK is one of the largest transport projects in the region.

The maximum volume of cargo transportation along the BTK corridor is projected at the level of 17 million tons per year. At the initial stage, this indicator will be at the level of 6.5 million tons of cargo, and up to one million passengers will be transported.

The BTK railroad was built on the basis of the Azerbaijan-Georgia-Turkey interstate agreement, which was signed in February 2007.

It should be noted that cargoes between China and the West are mainly planned for this road. However, after commissioning SOCAR subsidiaries SOCAR Carbamide (700,000 tons a year and 70% for export) and SOCAR Polymer (570,000 tons, of which about 70% will go for export) in Sumgait after 2018 and in the following years after reaching the designed capacity of the SOCAR Methanol plant (650-700 thousand tons per year, almost 95% to be exported), Turkey, Georgia and European countries will become one of the markets for the products of these enterprises. The best way to deliver goods to these countries will naturally be the BTK railroad. In addition, in 2021, the modernization of the Baku refinery will be completed, which will produce Euro-5 quality products. Azerbaijan will then have an opportunity to supply about 2 million tons of oil products annually for export.

The day before, Economy Minister Shahin Mustafayev at the Azerbaijani-Turkish business forum in Igdir said the Azerbaijani investments in the Turkish economy reached $ 10.1 billion. According to the Minister, reverse investments from Turkey to Azerbaijan amounted to $ 11.7 billion. More than three thousand companies with Turkish capital work in Azerbaijan, and almost two thousand companies with Azerbaijani capital work in Turkey.

The Minister stressed that Azerbaijan implements its strategic projects with fraternal Turkey, including such projects as the TANAP gas pipeline, the BTK railway, the Star oil refinery, the Shah Deniz project, the South Caucasus gas pipeline, etc. -12B

Turkish Energy and Natural Resources Minister to Visit Azerbaijan

Baku/30.10.17/ Turan: The Minister of Energy and Natural Resources of Turkey Berat Albayrak will visit Azerbaijan. This is reported by the Ministry of Energy and Natural Resources of Turkey.

Albayrak will participate in the sixth meeting of the High-Level Strategic Cooperation Council Turkey-Azerbaijan, which will be held in Baku on October 31.

Within the framework of the Council meeting, it is expected to discuss the strengthening of energy cooperation between Azerbaijan and Turkey.

It should be noted that the fifth meeting of the High-Level Strategic Cooperation Council Turkey-Azerbaijan was held in Baku on March 15, 2016. -0-

News of Shah Deniz-2 Project

Baku/30.10.17/ Turan: Currently, 12 wells are drilled in the Shah Deniz-2 project, and the drilling of the thirteenth well is coming to an end.

However, six wells have already been fully prepared to receive the first gas within Shah Deniz-2.

As Turan has learned from oil and gas sources, the first gas production is planned for September 2018, and export supplies of blue fuel to Turkey under Shah Deniz-2 are planned for November next year.

It should be noted the drilling of 26 wells is planned within the framework of Shah Deniz-2. The drilling operations will continue until 2026. Production for the first time in the Caspian will be conducted from manifolds - underwater robots, since the depth of the sea at the mining site reaches about 500 meters. Five manifolds will be installed here, and from each of them it is planned to drill from four to six wells.

The wells are drilled using the semi-submersible drilling rigs Dede Gorgud and Istiglal. After completion of the drilling, the wells will be preserved for further development.

All wells have a drilling depth of over 6,500 meters. The depth of the last well is 6,936 meters.

Within the framework of the Shah Deniz-2 project, the annual volume of gas production will be 16 bcm. The consortium plans to reach the project indicators only in 2022, as European exports (10 bcm) are planned only by the end of 2020. -12B

Diesel Fuel Has No Future in Azerbaijan - Government Forecasts

Baku/30.10.17/ Turan: The Azerbaijani government forecasts in 2017 the production of diesel fuel at the level of 2 million 100.2 thousand tons, which is 11.6% higher than in 2016.

According to forecasts, starting from 2018, annual volumes of diesel fuel production in Azerbaijan will be reduced and will amount to 2 million 75.2 thousand tons in 2018, 1 million 793.8 thousand tons in 2019, 1 million 776.3 thousand in 2020. In 2021 the production of diesel fuel will increase to 2 million 114.6 thousand tons.

In 2016, Azerbaijan produced 1 million 881.9 thousand tons of diesel fuel.

Diesel fuel in Azerbaijan is produced only at the Heydar Aliyev refinery. --0-

Rosneft Freezes Oil Production in Black Sea Because of Sanctions

Baku/30.10.17/ Turan: The Russian oil and gas company Rosneft suspended exploration and production of oil in the South Black Sea area in the eastern part of the Black Sea due to the Western sanctions against the Russian Federation.

The Federal Agency for Subsoil Use (Rosnedra), at the request of the corporation, froze the validity of the relevant license for five years.

As explained by Vedomosti, under the terms of the license, the company had to perform exploration works on the area of ​​not less than 1,000 square kilometers by 2018, and by November 2022 to complete the construction of at least two wells.

The newspaper Kommersant, in turn, notes that Rosneft in return will focus on geological exploration in the West-Black Sea area. There it is engaged in exploratory drilling with the Italian oil and gas company Eni. -0

Explosion and Fire in Tehran Refinery

Baku/30.10.17/ Turan: At least six people were killed in an explosion in an oil refinery in the suburbs of Tehran on October 28, RIA Novosti reported, citing ISNA.

The explosion occurred in the city of Rey around 4 p.m. local time, provoking a fire. At least six people were killed and two were seriously injured.

According to the representative of the authorities, by the evening the fire was completely extinguished. -0-

Nord Stream to Set Record for Gas Transportation in 2017

Baku/30.10.17/ Turan: In 2017, almost 90% of the production capacity of the Nord Stream gas pipeline is expected. This is reported by Russian JSC Gazprom.

According to Gazprom, five years ago, in October 2012, the exploitation of both project threads began, with an annual capacity of 55 bcm.

If we proceed from the data of Gazprom, then in 2017, 49.5 bcm of gas is expected to be transported through the Nord Stream to Europe.

In 2014, 65% of the annual production capacity of the Nord Stream gas pipeline was used. In 2015, this indicator rose to 71%, and in 2016 it reached 80%.

Gazprom notes that from October 8, 2012 to October 7, 2017, the Nord Stream gas transportation system transported natural gas with a total volume of 182.1 bcm.

The Nord Stream gas pipeline consists of two 1,224 km long lines.

The Bovanenkovo ​​oil and gas condensate field is the main source of natural gas supply through the Nord Stream gas pipeline. The deposit occupying an area of ​​about 1,000 square km is located in Western Siberia (Russia) on the peninsula of Yamal, 40 kilometers from the coast of the Kara Sea. The explored and previously estimated gas reserves amount to 4.9 trillion cubic meters. The license for the development of the Bovanenkovo field is owned by Gazprom Dobycha Nadym, a wholly (100%) owned subsidiary of JSC Gazprom. -0

Ukrainian State Enterprise Wants to Buy Gas from SOCAR

Baku/30.10.17/ Turan: The Ukrainian state enterprise Ukrspirt and the trading house SOCAR Ukraine (a subsidiary of the Azerbaijani state company SOCAR) will hold consultations on the issue of supplying the enterprise with gas. This is stated in the message of Ukrspirt distributed on Saturday.

It was reported that a working meeting was held by the director of the State Enterprise Yuri Luchechko and the director of the Trade House SOCAR Ukraine Andrei Bychkov on commercial cooperation and supply of the enterprise with gas.

"We are interested in the appearance of buyers of this level. SOCAR can become a reliable partner of the state enterprise Ukrspirt," Bychkov said during the meeting.

"We can and should buy gas at the best price from reliable partners. We must consider the cost of gas, which is tied to the price at the exchange. This will allow us to save up to 1.2 million hryvnia on our volumes," Luchechko said.

It is noted that the parties agreed to continue consultations on commercial issues.

SOCAR Ukraine has a license for gas trade (purchase and sale) and is a gas supplier for a number of companies. -0-