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Energy news
Bulletine Energy 

2017 November 10 ( Friday )  10:31:39
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Ilham Aliyev: SOCAR Is Our Strategic Asset

Baku/10.11.17/ Turan: Azerbaijani President Ilham Aliyev notes the stable financial situation of the republic and expects further growth of strategic foreign exchange reserves.

"Our financial situation is stable, and there are no problems, although certain circles want to belittle us in this matter, to present everything as if the financial situation of Azerbaijan is not very good. In the first 9 months of 2017 our foreign exchange reserves increased by $ 4.5 billion (up to $ 42 billion - Ed.) and up to the end the growth trend will continue," Ilham Aliyev said at a ceremony dedicated to the production of a 2-billionth ton of oil in Azerbaijan.

According to him, Azerbaijan"s external debt is 18% of GDP.

Ilham Aliyev stressed that in 2018 considerable financial resources will be allocated to support the oil industry of Azerbaijan. "The state will continue to support the State Oil Company, even taking into account the fact that it itself earns money; this is our strategic asset," Mr. President added. -0-

Confirmed Oil Reserves in Azerbaijan Amount to 1.5 Billion Tons - President Ilham Aliyev

Baku/10.11.17/ Turan: "The confirmed oil reserves in Azerbaijan are 1.5 billion tons today, and the forecast reserves are 2 billion tons," President Ilham Aliyev said said at a ceremony dedicated to the production of a 2-billionth ton of oil in Azerbaijan.

According to him, 460 million tons of oil has been extracted from the Azeri-Chirag-Gunashli (ACG) block of fields. "The extension of the contract for the development of the Azeri-Chirag-Gunashli (ACG) fields until 2050 indicates that Azerbaijan has sufficient oil reserves," Mr. President said.

Regarding natural gas reserves in Azerbaijan, Ilham Aliyev said the confirmed gas reserves are estimated at 2.6 trillion cubic meters, and the forecast is approximately 3-4 trillion cubic meters. -0-

Azerbaijan Can Produce Two-Trillionth Cubic Meter of Gas in Less than Forty Years

Baku/10.11.17/ Turan: Azerbaijan could produce a three-billionth ton of oil in 2060, the First Vice-President of the State Oil Company of Azerbaijan Khoshbakht Yusifzadeh said. "Calculations show we will be able to produce a three-billionth ton of oil in Azerbaijan around 2060," he said.

According to him, it is planned to produce a two-trillionth cubic meter of gas in Azerbaijan in 2055.

To date, more than 790 bcm of gas has been produced in Azerbaijan. The Statistical Committee of the country has been keeping records of gas since 1928. In the years of independence, from 1992 to the present time, about 210 bcm of commercial gas has been produced in Azerbaijan, of which more than 82 bcm accounted for the Shah Deniz field. After 2021, about 35 bcm of commercial gas is planned to be produced in Azerbaijan annually. Then, production volumes with the introduction of new deposits (Shah Deniz-3, deep-seated ACG beds, and the Babek field) may exceed 40 bcm annually.

Note that the one-billionth ton of oil in Azerbaijan was produced in 1971, and the two-billionth ton - on November 8, 2017. -12B-

After Shale Revolution, Russia Threatened by Alternative Energy

Baku/10.11.17/ Turan: Russian officials consider renewable energy to be expensive and uncompetitive in comparison with hydrocarbons. And this error can cost Russia as much as ignoring the slate revolution, the Russian newspaper Nezavisimaya Gazeta writes.

The rapid progress of alternative energy has already made wind and solar power stations competitive. In 30 countries of the world, clean energy already costs less than energy from fossil sources, according to a report of the World Economic Forum (WEF).

In the short term, alternative energy will become more profitable for most countries, which will result in a new drop in world oil prices.

Wind energy without government subsidies has become the cheapest type of electricity for production in Germany and the UK in October 2015, where it accounted for 11.4 and 7.7% of the generation, respectively, Bloomberg New Energy Finance notes. In the US, wind energy became the cheapest in November 2014. -0

Oil and Fuel Market Being Created in CIS Space

Baku/10.11.17/ Turan: The countries of the Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan) have prepared a program for the creation of common markets for oil and oil products by 2025.

The program was developed by the consulting company RPI and last week it was agreed upon by the intergovernmental council of the Eurasian Economic Commission.

According to the program, the unified rules of exchange trades, non-discriminatory access to oil and oil products transportation systems and the same principles for the formation of tariffs for transportation through main pipelines are envisaged.

It assumes that the countries of the Union by 2025 will develop mechanisms for the effective use of market-based instruments of pricing and development of exchange trades in oil and oil products. Tariffs for transportation of oil and oil products will have to be formed according to unified principles. -0-

European Commission Finds "meaningless" the construction of Nord Stream-2

Baku/10.11.17/ Turan: Europe does not need the Nord Stream-2 gas pipeline, since in the future the consumption of "blue fuel" in the European Union will decrease, according to the materials of the European Commission.

According to the EC, taking into account the expected reduction of domestic fuel consumption in the EU by 2030, the availability of the already existing gas import infrastructure and the growing competitiveness of LNG supplies, the construction of such a system as Nord Stream-2 becomes meaningless, RIA Novosti reports.

In addition, Brussels has promised to continue to support the transit of Russian gas through Ukraine.

The day before the EC agreed upon the proposals on amendments to the EU Gas Directive, according to which the key principles of the EU energy legislation will apply equally to all existing and future gas pipelines. ---0

Ukraine Getting Ready for Life without Gazprom

Baku/10.11.17/ Turan: Ukraine and Romania are actively preparing for the transition to direct interaction between the gas transport systems (GTS) operators after the completion in 2019 of the contract between Naftogaz and Gazprom on the transit of gas through Ukraine. This is reported by the press service of Ukrtransgaz.

Ukrtransgaz noted that the transition to direct cooperation is also possible after the conditions of this contract have been brought into line with the requirements of the European energy legislation.

"Unfortunately, today Gazprom, referring to the provisions of the current contract, artificially blocks the introduction of European practices and approaches at the junction points of the Ukrainian and European GTS. The solution of this problem is one of the requirements of the Ukrainian side in the case of Stockholm arbitration between Naftogaz Ukraine and JSC Gazprom," it was reported.

In July-August, the operators of the GTS of Ukraine and Romania held consultations with market participants on business rules according to the draft direct agreement on interaction at the point of connection between the Ukrainian and Romanian GTS - Mediash Aurit / Tekovo.

"Responses have been received from five companies working or planning to work in the natural gas markets of Ukraine and Romania, who welcome the prospect of introducing European rules at this junction point," Ukrtransgaz added. -0-

China and Alaska Sign Agreement on LNG Projects for $ 43 Billion

Baku/10.11.17/ Turan: Three state corporations of the People"s Republic of China (P.R.C.) yesterday signed an agreement with the authorities of Alaska and the company Alaska Gas Line Development Corp. (AGDC) on the implementation of projects for the liquefaction of natural gas for $ 43 billion in Alaska.

On the Chinese side, China Petrochemical Corp. (Sinopec), the state fund of China Investment Corp. (CIC) and the Bank of China are involved in the agreement, the government of Alaska said.

Over the past decade, gas consumption in the P.R.C. has more than quadrupled, and it has taken the third place in the world in terms of its imports. Gas consumption since the beginning of 2017 is 18% higher than the level for the same period last year. The main gas suppliers to the P.R.C. are Qatar and Australia, and work is under way to supply Russian gas through pipelines.

The US has natural gas reserves of 330 trillion cubic feet, but the country still lacks export capacity, especially on the Pacific coast. -0