(no subject)
Thursday, 4 December 2014 21:05The story may not be over yet. Putin announced the beneficiary of the EU’s obstinacy will be Turkey, who could be home to a major Russian natural gas pipeline. Putin even offered Turkey a discount on future natural gas deliveries, no doubt a move intended to be a rebuke to the EU.
Nevertheless, as a Reuters report notes, the ultimate construction of a South Stream-style pipeline to Turkey looks just as uncertain. For one, the discount would make a project that was economically questionable look even worse. Moreover, the pipeline capacity could far exceed Turkey’s annual natural gas demand, raising the question of whether the excess volumes would need to be diverted to Europe after all. If that were the case, the pipeline to Turkey hardly makes more sense than South Stream.
At this point, there are more questions than answers, but Russia seems to be flailing about. Putin’s decision to scrap a project he once heavily pushed underscores Russia’s floundering economic position.
http://oilprice.com/Energy/Natural-Gas/Scrapping-South-Stream-Underscores-Russias-Weakness.html
Much attention has been given to recent agreements by Russia to supply China with roughly 30 billion cubic meters (bcm) of natural gas a year. According to Nomura Holdings, the estimated $284 billion deal, along with the $400 billion gas agreement signed in May to supply 38 bcm of natural gas annually for thirty years, could account for roughly 19 percent of China’s total gas consumption in 2020.
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China has imported gas from neighboring Turkmenistan since 2009. Today, Turkmenistan supplies almost half of China’s gas imports. Behind Russia, Iran, and Qatar, Turkmenistan holds the fourth largest reserves of natural gas. Nearly all gas exports to China come from the Samantepe gas field.
In an effort to improve its energy security, China has continually committed to receive larger amounts of gas from state-owned Turkmengaz. With an initial pact in 2007 to import 30 bcm per year of natural gas by 2020, China and Turkmenistan recently agreed to increase and accelerate imports to 65 bcm/year by 2016.
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Wherever China’s natural gas comes from in the future, the government wants to have a multitude of supply options. Europe’s vulnerability from an over reliance on Russian gas has led to China placing a premium on a diversified supply of natural gas.
http://oilprice.com/Energy/Natural-Gas/China-Will-Not-Repeat-Europes-Natural-Gas-Mistake.html
Nevertheless, as a Reuters report notes, the ultimate construction of a South Stream-style pipeline to Turkey looks just as uncertain. For one, the discount would make a project that was economically questionable look even worse. Moreover, the pipeline capacity could far exceed Turkey’s annual natural gas demand, raising the question of whether the excess volumes would need to be diverted to Europe after all. If that were the case, the pipeline to Turkey hardly makes more sense than South Stream.
At this point, there are more questions than answers, but Russia seems to be flailing about. Putin’s decision to scrap a project he once heavily pushed underscores Russia’s floundering economic position.
http://oilprice.com/Energy/Natural-Gas/Scrapping-South-Stream-Underscores-Russias-Weakness.html
Much attention has been given to recent agreements by Russia to supply China with roughly 30 billion cubic meters (bcm) of natural gas a year. According to Nomura Holdings, the estimated $284 billion deal, along with the $400 billion gas agreement signed in May to supply 38 bcm of natural gas annually for thirty years, could account for roughly 19 percent of China’s total gas consumption in 2020.
---
China has imported gas from neighboring Turkmenistan since 2009. Today, Turkmenistan supplies almost half of China’s gas imports. Behind Russia, Iran, and Qatar, Turkmenistan holds the fourth largest reserves of natural gas. Nearly all gas exports to China come from the Samantepe gas field.
In an effort to improve its energy security, China has continually committed to receive larger amounts of gas from state-owned Turkmengaz. With an initial pact in 2007 to import 30 bcm per year of natural gas by 2020, China and Turkmenistan recently agreed to increase and accelerate imports to 65 bcm/year by 2016.
---
Wherever China’s natural gas comes from in the future, the government wants to have a multitude of supply options. Europe’s vulnerability from an over reliance on Russian gas has led to China placing a premium on a diversified supply of natural gas.
http://oilprice.com/Energy/Natural-Gas/China-Will-Not-Repeat-Europes-Natural-Gas-Mistake.html