Greater Caspian Region Weekly Overview - August 23rd
Iran
Iran wants to increase share in largest Azerbaijani gas project
Iran intends to increase its stake in the largest Azerbaijani gas project Shah Deniz, Mahmoud Vaezi, minister of communications and information technology of Iran, co-chairman of the intergovernmental commission said in an exclusive interview with Trend.
He said that negotiations on this issue are already underway with the Azerbaijani side.
“The Iranian company NICO owns equity in the Shah Deniz project, and we have held talks to increase its stake in the project,” said Vaezi.
NICO owns a 10 percent stake in the Shah Deniz project.
As part of the implementation of the Shah Deniz project, the annual gas production volume will increase from 9 billion cubic meters (within the first phase) by additional 16 billion cubic meters in the second phase. As part of the second stage of the field’s development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
Iran to launch new gas compressor close to Turkey border
Iran is preparing to launch a new gas compressor in Tabriz to increase the gas delivery capacity to Turkey from 24 million cubic meters per day (mcm/d) to 65 mcm/d next week.
According to a report, released by Shana on August 23, launching the compressor is aimed to increase the gas pumping to the north-western regions as well as Armenia and the Nakhchivan Autonomous Republic.
Iran swaps 300 mcm per annum (mcm/a) of gas with Azerbaijan as well as barters 350 mcm/a of gas with Armenian power. Iran also exports 9.6 bcm/a of gas to Turkey.
South Pars phase 12 become fully operational
The biggest phase of South Pars became fully operational on August 23th. The capacity of gas production of this field is 84 mcm/d of row gas, of which some 75 mcm/d of sweet gas is produced.
The refined gas from phase 12 is pumped to the 6th cross-country pipeline, aimed to deliver South Pars gas to western regions and Iraq.
Iran has an agreement with Iraq to supply 25 mcm/d of gas to Baghdad’s power plants.
The first and second sections of this pipeline totalling 611 km in length have been completed and 600 km of piping is to reach Iraqi borders.
The capacity of 6th cross-country pipeline is transferring 110 mcm/d.
Iran also connected the South Pars phases 13, 14, 19, and 22&24 to 6th cross-country pipeline, Shana reported on August 23th.
Iran plans to produce 20 million tons of methanol by 2020
Iran would produce 20 million tons per annum (MT/a) of methanol in next five years, Mohammd Hossein Peivandi, the deputy head of the National Iranian Petrochemical Company announced on August 22.
He said that the letter of credit has been opened by China to finance Iranian methanol plants and we hope that a part of produced methanol would be used to produce methylethylene (Propene) to be export.
Iran's methanol output stands at 5 million metric tons per year.
Iran produces 44.5 million tons and exports about 18 million tons of petrochemicals per annum. The country is to increase this volume to 50 MT in current fiscal year, started on March 21th.
Iran also planned to increase the share of EU in Iran’s petrochemicals export to 30 percent after the elimination of sanctions, expected to start in late 2015.
Azerbaijan
TAP gas project to sign large contracts
Trans Adriatic Pipeline AG (TAP) will conclude several large contracts this year, including onshore and offshore pipeline construction, compressor stations, line pipes, Lisa Givert, TAP head of Communications told Trend August 18.
Givert said that currently TAP is in early discussions with several lenders.
“TAP expects to secure funding from a number of multilateral institutions, such as the European Bank for Reconstruction and Development and the European Investment Bank, as well as Export Credit Guarantee Agencies of a number of OECD countries involved in the supply of goods and services,” Givert said.
“In addition, TAP’s financing is foreseen to include commercial lenders,” she said, adding that it is too early to comment on any further details.
She also noted that TAP is part of the $45 billion Southern Gas Corridor value chain.
The delivery capacity of TAP to double
Trans Adriatic Pipeline project will increase its capacity to 20 billion cubic meters, says project’s managing director
The Trans Adriatic Pipeline (TAP) will transport 10 billion cubic meters of gas annually from the Shah Deniz phase II field in the initial operational phase in early 2020 and is designed to double its capacity, the manager director of the project said Tuesday.
“TAP is designed to double its capacity to 20 billion cubic meters by installing additional compressor units and stations. It also has reverse flow capability which can provide alternative gas supplies as well as ensuring gas flows in the event of an emergency or potential cut off further upstream,” Ian Bradshaw, TAP’s managing director told Anadolu Agency.
TAP is the European leg of the Southern Gas Corridor (SGC) which is considered as one of the most complex gas value chains being developed in the world. The project aims to bring Caspian resources to European energy markets for the very first time. Natural gas from the Shah Deniz field, the largest natural gas field in Azerbaijan, will make a 3,500 kilometer journey from the Caspian Sea to Europe.
Kazakhstan
China to provide $2.5 billion loan for Kazakh gas pipeline
Kazakhstan’s national gas supply company KazTransGas has signed contracts with China Development Bank Corporation and Bank of China an agreement on a syndicated loan worth $2.5 billion for the period until 2028. The loan will be used to finance the construction of the Beyneu-Bozoi-Shymkent gas pipeline, the press service of KazTransGas said on August 19.