Further Gazprom Discounts?

9:56 AM Reporter: Baris Sanli 0 Responses
"The representatives of "Gazprom" has recently stated that they could reduce by 7-10 per cent of the price of gas to EU countries"

" It is reported that representatives of the Russian gas monopoly at the meeting spoke about the ongoing negotiations to reduce the price of gas from companies such as RWE, Shell Energy Europe, E.ON, Eni, GWH Gashandel, Centrex, EGL, GasTerra, Dong and Polish PGNiG."

" In 2011 "Gazprom" has exported to Europe about 150 billion cubic meters of gas at an average price of 384 dollars per thousand cubic meters. According to experts of the company, this year the average price of gas will be about $ 415"

http://novostimira.com/novosti_mira_15510.html

Read more...

Turkmenistan's gas price to China and Gazprom

11:03 AM Reporter: Baris Sanli 0 Responses
As of 13 February 2012
Turkmenistan gas price to
  • China is : 192 $ / 1000 m3 (5.48 $/mmbtu)
  • Gazprom is: 240 $ / 1000 m3 (6.85 $/mmbtu
Prior to 2009. revenues from the sale of natural gas accounted for about 70% of the gross national product. In better times, in 2008. Turkmenistan Gazprom sold about 50 billion cubic meters. meters of natural gas valued at approximately $ 7 billion.
2010, volume of purchases fell to an annual 11 billion cubic meters
Gas exports to Iran is limited to 8 billion cubic meters.


izvestia.ru, as reported www.centrasia.ru.
http://www.oilru.com/news/303286/
http://top.rbc.ru/politics/01/02/2012/635866.shtml

Read more...

Iran's record gas consumption

9:30 AM Reporter: Baris Sanli 0 Responses
Iran's production: 554 million m3 (mcm/day)
28 out of 31 regions in Iran is experiencing freezing colds.
Iran's daily demand hit a record 551 million m3/day (mcm/day).
Trend.az claims a new record of 556 mcm/day
Iran also exports 30 mcm/day to Turkey.
Iran Turkmenistan pipeline capacity is 50 mcm/day.
Turkmenistan has cut natural gas to Iran from 20 to 10 mcm/day.

References:
http://en.trend.az/regions/iran/1990080.html
http://www.panarmenian.net/rus/news/92297/

Read more...

Iraq's Electricity Problems

3:37 PM Reporter: Baris Sanli 0 Responses
Wikipedia
As of December 2011, the output of electricity sector in Iraq averages more than 8,500 MW, while the demand is typically more than 14,000 MW

There is a growing problem of electricity shortage in Iraq. If you check the Brooking's index for Iraq, you will see "Average hours of electricity/day" progress.
But the story does not start here.... It was chronic for such a long time
In February of last year(2011)'s popular demonstrations took place in Baghdad and the various provinces demanding better services in the forefront of electricity and asked Prime Minister Nuri al-Maliki's Hundred Days give him a chance to address these problems, most notably the electricity (average hours served) and the electricity crisis has aggravated rather than lessened.
According to Darel Hayat:
that the rate of the highest level of production of electricity for any month in the history of the Ministry of Electricity of Iraq was about 5,500 MW and that was in August (August 2011) ,When you add electricity imported by Iraq from outside its system (Iran and commercial stations in Kurdistan and commercial vessels in the Shatt al-Arab) the rate of supply of electricity in August 2011 is about 7900 MW which is also higher by about 26 percent than it was in ent of what it was in the same month of 2010 (4800 MW)
Iraq seems to depended on imports of electricity to a very large extent
Currently it is worse but will be worse by Summer of 2012, Mubasher claims:
Problems are:
1. Transmission sistem is old and needs rehab
2. Technical flaws in distribution network
3. Power plants to be built

It is expected that the Iraqi demand will hit 16000 MW, not even this capacity with imports will be enough...
Mubasher also claims the supply and demand is unmatched by 10000 MW.
Iraq needs a capacity of 18000 MW and you see lots of new contracts signed in the news


Ref:
http://www.brookings.edu/~/media/Files/Centers/Saban/Iraq%20Index/index.pdf
http://international.daralhayat.com/internationalarticle/358483
Wikipedia
http://www.mubasher.info/portal/ISX/getDetailsStory.html?goToHomePageParam=true&siteLanguage=ar&storyId=2007257

Read more...

Effects of Cold Weather for Gas Supplies in Europe and Middle East

11:02 AM Reporter: Baris Sanli 0 Responses
According to Lenta.ru
Turkmenistan has cut gas to Iran from 20 million m3 to 10 million m3. Even to 6 million m3
Iran-Turkmenistan pipeline capacity 50 million m3 (mcm)
Iran reduced gas to Turkey to 30 million m3(?)
Kommersant claims Gazprom has not fulfilled its duties to Europe
%10 incomplete delivery to Europe
Gazprom" for the first time recognizes that fail to meet the peak load
With Nordstream Gazprom's export capacity hit 210 bcm(billion cubic meters), but article claims it can not export 180 bcm
Poland, Slovakia, Austria, Hungary, Bulgaria, Romania, Greece and Italy. The most serious deficiency - in Austria (30%), Italy (24%) and Poland (8%)
Turkey is supplied more than 8 mcm/day than contracted(?),
Poland received 38 mcm/day instead of 40 mcm/day
Italy claims short supply of 10-20 mcm/day (95.7 mcm/day received instead of 108.3)

Reason:
Cold weather
Reduced imports from Turkmenistan (from 40 bcm to 10 bcm)
Ukraine is claimed to be taking more than contracted (150-170 mcm/day instead of 130 mcm)



Read more...

Turkey's record Natural Gas and Electricity consumption

10:27 AM Reporter: Baris Sanli 0 Responses
According to TEİAŞ, Turkish electricity system produced a record
  • 35446.1 MWe (Momentarily) - 16th Jan
  • 34971 MWe (hourly average) - 16 th Jan
  • 0.71 TWh maximum daily consumption in 12th Jan 2012
The previous record and alltime high maximum peak production happened on
28th July 2011 - 36112.4 MWe at 14:30 local time

Sabah newspaper also claims, maximum daily consumption has occured as
- 180 million m3 /day
- 170 million m3/day

This is due to extreme cold affecting Anatolia and Tracia...

Read more...

Energy Security question from a Russian Perspective

3:45 PM Reporter: Baris Sanli 0 Responses
NG.ru has a comprehensive review of "Energy Security Question from a Russian Perspective"

Here are some of the parts:

"Already, in some regions of Russia there is a shortage of natural gas."
"An even greater threat will be a reduction in export volumes of fuel, when and if it coincides with a decrease in world prices for oil and gas"
"Change of average world oil prices at $ 1 per barrel will result in additional lost revenue or budget of the Russian Federation in the amount of 55-58 billion rubles (1.8 billion $)"

"Federal budget for 2012 with an estimated deficit of 1.5% of GDP is calculated based on the average price of Urals crude at $ 100 per barrel. Deficit budget in 2012 is possible at 117 dollars per barrel"

"Average distance delivery of raw materials is more than 3000 km (from Libya - 600 km, Norway - a thousand km) "

"The main contradiction: for the development of new oil production of the Arctic Region is required to invest a minimum of 70-120 billion dollars at partial guarantee of success"

This part is especially important since it lists a bunch of possible disturbances to Russian energy security question:

"The situation is exacerbated by the fact that in recent years formed the world market for gas:
  • liquefied natural gas (LNG) has been actively competes with the natural gas,
  • in Europe served the Norwegian North Sea gas,
  • the U.S. actively developing shale gas deposits.
  • European natural gas consumption has decreased while because of competition from LNG.
  • The gas pricing is increasingly moving away from contract prices to spot, as a result of this purchase price of Russian gas is reduced."

link: http://www.ng.ru/energy/2012-01-17/9_fuel.html

Read more...

Iranian gas usage figures

2:12 PM Reporter: Baris Sanli 0 Responses
From oilru.com
A summary of Iranian gas usage from a Russian website:

"Today, about 53% rural and 95% of the urban population of Iran, a total of about 75% of the population throughout the country, provided with cooking gas""this year in Iran came early cold, which was not observed for the past 43 years"" the maximum daily gas consumption in the industry is fixed at around 92 million cubic meters/day. Last year the figure was 72 million cubic meters/day, reports Iran News."


Read more...

Why South Stream can be more expensive than Nord Stream?

12:04 PM Reporter: Baris Sanli 0 Responses
Answer : "corrosive hydrogen sulfide environment"

Nord vs South Stream are undersea pipelines. But there are different costs. Reason is below

Nord Stream: 1220 km ... 9 billion €
South Stream: 900 km depth 2150 ms ... expected cost with cost overruns 10 billion €
From Jamestown:
"As planned, South Stream’s seabed pipeline is shorter but more expensive than the Nord Stream One pipeline on the Baltic seabed. That Baltic line, completed in November 2011, runs 1,220 kilometers; and it has cost some 9 billion Euros ($11.4 billion) to build, rather than the 6 billion Euros ($7.6 billion) declared at the start in 2006. In light of that experience, cost overruns on South Stream must be anticipated, and the 10 billion Euros ($12.7 billion) initial estimate questioned accordingly"

From NG:
this is due to "corrosive hydrogen sulfide environment"

Ref:
Алексей Давыдович Хайтун, http://www.ng.ru/energy/2012-01-17/9_fuel.html



Read more...