SCPX project: construction complete at majority of facilities in Georgia - TREND NEWS AGENCY

30 December 2017 10:04 (UTC+04:00)

Construction work has been completed at majority of facilities as part of the South Caucasus Pipeline Expansion (SCPX) project in Georgia, Trend learned from Georgia’s Ministry of Economy and Sustainable Development.

"SCPX compressor stations’ construction is progressing. The first compressor station (CSG1), as well as pressure reduction station at Georgian-Turkish border (Area 81), the 62-kilometer SCPX pipeline extension, including connection with TANAP at the Turkish border is completed," said the source in the ministry.

The construction of the second compressor station (CSG2) is 90 percent complete, added the source.

"The expansion of South Caucasus pipeline is one of the most important developments in terms of energy security of Georgia and larger region, said the source.

Russian Gas in the Southern Gas Corridor Could Undermine the EU’s Diversification Plans - CACI ANALYST

MONDAY, 27 MARCH 2017
Ilgar Gurbanov

Gazprom has officially declared its willingness to use the Trans-Adriatic Pipeline (TAP) as a route to deliver gas to Europe. TAP is an integral part of the Southern Gas Corridor (SGC) which is one of the priority energy projects for the EU to ensure the continent’s security of supply from a non-Russian source. Although technical and legal possibilities exist for Gazprom’s use of TAP’s expanded capacity, the long-term contracts securing the pipeline’s initial capacity for Azerbaijani gas together with EU legislation makes this option less likely. Nevertheless, the possibility of a Russian bid for TAP could hamper the EU’s diversification plans and block future gas supplies from other non-Shah-Deniz sources.

SOFAZ allocated over $1B for Southern Gas Corridor - TREND NEWS AGENCY

9 March 2017 08:30 (UTC+04:00)
Baku, Azerbaijan, Maksim Tsurkov

The State Oil Fund of Azerbaijan (SOFAZ) allocated more than $1.23 billion or 1.53 million Azerbaijani manats for the Southern Gas Corridor (SGC) project in 2014-2016, says a report on the activity of Azerbaijan’s Cabinet of Ministers in 2016.

The report says that in 2016, in order to finance the Azerbaijani government’s share in the Southern Gas Corridor CJSC, SOFAZ transferred 797.4 million manats ($495.2 million) to the country’s Economy Ministry.

Expenditures for this purpose accounted for 33.9 percent of SOFAZ’s planned budget.

EU's Move to Kill South Stream Cost Southeastern Europe Future Energy Security - SPUTNIK NEWS

28.02.201, updated 10:16

The countries of Southeastern Europe saw their future access to energy imperiled when EU bureaucrats decided to block the South Stream project, Srbijagas CEO Dusan Bajatovic told Sputnik Serbia; he stressed the importance of the Balkan region obtaining access to Russian gas via the Turkish Stream gas pipeline.

In an interview with Sputnik Serbia, Srbijagas chief executive Dusan Bajatovic said that EU bureaucrats' decision to block the South Stream project had cost Southeastern Europe its future access to energy.

He also underscored the significance of the Russian gas reaching the Balkan region via the Turkish Stream gas pipeline.

World Bank, Azerbaijan sign TANAP loan - NATURAL GAS WORLD

Source: TANAP

January 16th, 20172:20pmAzerbaijan desk 

World Bank and the the government of Azerbaijan January 16 signed a $400mn loan agreement funding the TransAnatolian gas pipeline (Tanap) that will deliver Caspian gas to Turkey and Europe.

Tanap, part of the southern gas corridor project (SGC), will transport natural gas from the Shah Deniz field in Azerbaijan to and across Turkey, and further to Europe, aiming to diversify Azerbaijan’s gas export markets and improve the security of the energy supply in Turkey and southeastern Europe, the bank said.

Besides Tanap it includes the development of the Shah Deniz 2 field; an expansion of the South Caucasus pipeline across Azerbaijan and Georgia to Turkey; and the TransAdriatic pipeline (TAP), which carries the gas through Greece and Albania and under the Adriatic Sea to southern Italy.

Azerbaijan increases gas supply to Turkey - TREND NEWS AGENCY

3 January 2017 12:20 (UTC+04:00)
Baku, Azerbaijan
Maksim Tsurkov

Azerbaijan supplied 5.31 billion cubic meters (bcm) of gas to Turkey in January-October 2016 as compared to 5 bcm in the same period of 2015, Turkey's Energy Market Regulatory Authority said in a report on its website Jan. 3.

Azerbaijan supplied 6.17 bcm of natural gas to Turkey in 2015 as compared to 6.07 bcm in 2014.

The report said that in January-October 2016, Turkey imported 36.42 bcm of gas, of which 30.62 bcm were supplied via pipelines, while 5.8 bcm accounted for the import of liquefied natural gas (LNG).

AIIB Approves $600Mln Loan to Azerbaijan for TANAP Gas Pipeline Construction - SPUTNIK NEWS

21.12.2016,18:19

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) approved Wednesday the allocation of $600 million to Azerbaijan for the construction of the Trans-Anatolian Natural Gas Pipeline (TANAP), the bank said in a press release.

The loan is the biggest ever approved by the AIIB, according to the press release, in which it was added that the investment in TANAP contributed to the integration of Azerbaijan into new markets and to the increase of Turkish energy security. It is also to be beneficial for Europe. 

Earlier in the day, the World Bank approved a $400-million loan to Azerbaijan and a $400-million loan to Turkey for the TANAP construction. 

TANAP to be 55% complete by the end of 2016 - WORLD PIPELINES

Wednesday, 09 November 2016 14:41
Anna Nicklin, Editorial Assistant 

Construction of the Trans Anatolian gas pipeline project (TANAP) has begun and is expected to be 55% complete by the end of the year, according to Turkey’s Minister of Energy and Natural Resources, Berat Albayrak. The pipeline is expected to serve as a new alternative for energy supplies to Europe, which, alongside TurkStream, will allow Turkey to become gas trade centre.

The minister also noted that Turkey, being located close to the energy-rich regions, such as the Caspian Sea region, the Middle East and Central Asia, is moving in the direction of becoming an energy hub and diversifying its energy sources.

East Med offers huge opportunities in energy: Leading US expert - HURRIYET DAILY NEWS

November/07/2016
Merve Erdil

There are huge energy opportunities in the Eastern Mediterranean that will create huge benefits for many countries, said Richard L. Morningstar, the founding director and chairman of the Global Energy Center at the Atlantic Council and the secretary of state’s former special envoy for Eurasian energy.

Morningstar said he did not know of another situation with so many opportunities that would benefit so many countries yet also have so many political difficulties.

“So to take advantage of those opportunities is a good thing. That is not to say there will be an agreement on projects; there certainly won’t be one tomorrow. But it is a start and I think it creates real opportunities,” added the former U.S. ambassador to Azerbaijan.

Greece, Bulgaria extend gas interconnector capacity bids to end-November - PLATTS

London (Platts)--2 Nov 2016 1040 am EDT/1440 GMT
By Stuart Elliott, edited by Alisdair Bowles

Greece and Bulgaria have agreed to extend to the end of November the deadline for binding bids for capacity in the planned Interconnector Greece-Bulgaria designed to improve gas connectivity in southeast Europe.

The deadline for binding offers had been set for October 31, but the pipeline operator said it had extended the deadline "at the request of participants in the first phase."

A total of nine non-binding expressions of interest for a total of 5.3 Bcm/year of capacity were submitted in the first phase earlier this year.

EU energy security tops discussions at World Congress in Istanbul - AZER NEWS

11 October 2016 15:32

By Nigar Abbasova

Relations of Turkey and Azerbaijan, which are determined by historical, cultural, ethnic and religious connections, are gaining even more momentum due to mutually beneficial and successful cooperation of the two countries in the energy sector.

The 23rd World Energy Congress, grandiose event of colossal importance that brought together more than 10,000 top world leaders in the field of energy, became an additional evidence of the fact that successful cooperation between the countries may become a guarantee of energy security in a whole Europe.

Azerbaijan’s President Ilham Aliyev, speaking at the congress said that energy projects, jointly implemented by Azerbaijan and Turkey are of great significance for the world, mentioning that the role of the two countries in the issue of energy security can not be overestimated. The president emphasized that today the Southern Gas Corridor is among the largest energy projects all over the world.

Southern Corridor gas pipeline is on schedule, BP official says - OIL & GAS JOURNAL

WASHINGTON, DC, 09/22/2016, By Nick Snow, OGJ Washington Editor

The Southern Corridor natural gas pipeline system, which aims to transport gas 2,175 miles from the Caspian Sea to southern Europe, is on schedule and expected to come in under budget, a BP PLC official told an Atlantic Council forum on Sept. 21.

“There still are potential technical delays that remain for this project,” said Joe Murphy, Southern Corridor vice-president for BP’s Azerbaijan-Georgia-Turkey operations. “This economic environment is different from when the partners signed the contracts, but if we can continue meeting deadlines on time, the project will be economic.”

Its three main challenges are getting regional permits in Italy, acquiring land in Greece and Albania, and potential technical delays, he said during a discussion of the project which actually involves three pipelines:

Russia extends sympathy to potential energy partner Turkey - UPI

Vladimir Putin keeping close tabs on government stability in Turkey.
Photo courtesy of Russian Ministry of Defence

Energy company Gazprom had proposed a string of gas pipelines through Turkish territory.

By Daniel J. Graeber

MOSCOW, July 18 2016 (UPI) -- The Russian government views an attempt to undermine the government of its key energy trading partner Turkey as unacceptable, President Vladimir Putin said.

Turkish President Recep Tayyip Erdogan vowed revenge late Sunday during mourning for the 290 people left dead after last week's failed coup attempt. At least 6,000 people, including more than a dozen of the country's top military generals, were arrested in connection with the putsch.

Putin said in a statement he was expecting to meet personally with the Turkish president to discuss bilateral affairs.

"He expressed words of sympathy to President Erdogan over the numerous deaths, both among civilians and law enforcement officers who stood against the plotters, and expressed his hope that constitutional order and stability will be restored in Turkey as soon as possible," a statement from the president's office read.

Turkey backs Southern Gas Corridor project: Energy Min. - ANADOLU AGENCY

Berat Albayrak

Turkey will support Southern Gas Corridor project politically, financially and technically: Turkey's Energy Minister

29.02.2016
BAKU, Azerbaijan

Turkey's Energy and Natural Resources Minister declared the country's support for the Southern Gas corridor on Monday to carry Caucasian natural gas to Europe via Turkey.

During his visit to the second Southern Gas Corridor Advisory Council Meeting, which started in Baku on Feb. 29, Berat Albayrak said that Turkey will support the Southern Gas Corridor concept financially, technically and politically to ensure the country's supply security.

Southern Gas Corridor remains priority for EU - TREND NEWS AGENCY

Baku, Azerbaijan, Feb. 27, 2016
By Elena Kosolapova

The Southern Gas Corridor project remains a priority for the European Union, a European Commission energy spokeswoman told New Europe.

“The immediate priority for the region remains the completion of the Southern Gas Corridor, including TANAP, the Greece-Italy Trans-Adriatic Pipeline and the Greece-Bulgaria IGB interconnector,” said the spokeswoman.

She noted that the Southern Corridor is successfully being put in place to supply gas from Azerbaijan to the EU by 2020.

The corridor also offers the potential, in the future, to facilitate the entry of other gas sources into the EU from the Eastern Mediterranean, the Caspian, and the Middle East, according to the spokeswoman.

The Southern Gas Corridor takes precedence over an agreement signed by Russia’s Gazprom, Italy’s Edison and Greece’s DEPA on February 24 to develop a natural gas pipeline between Greece and Italy to transport Russian gas to Europe, the EC spokeswoman added.

Gazprom, DEPA and Edison sign Memorandum of Understanding - GAZPROM

Alexey Miller, Marc Benayoun and Theodoros Kitsakos

February 24, 2016

Alexey Miller, Chairman of the Gazprom Management Committee, Marc Benayoun, CEO of Edison SpA, and Theodoros Kitsakos, CEO of DEPA SA, signed today the Memorandum of Understanding on natural gas deliveries across the Black Sea from Russia via third countries to Greece and from Greece to Italy in order to establish a southern route to deliver Russian natural gas to Europe.

The signing ceremony took place after the meeting held today in Rome between Alexey Miller and Federica Guidi, Italian Minister of Economic Development. The ceremony was attended by Giorgos Tsipras, Greek Foreign Ministry's Secretary General for International Economic Relations.

TAP likely to bring more Caspian gas to European markets, Managing Director says | Trend News Agency

19 JANUARY 2016, Baku, Azerbaijan

The onshore construction activities of the Trans Adriatic Pipeline (TAP) will begin in all countries mid-2016, with the offshore scope starting in the winter of 2017/2018, Ian Bradshaw, Managing Director at TAP AG said in an interview to AzerNews.

“TAP’s progress continues to be in line with the project schedule, which ensures we will be ready to transport Shah Deniz II gas to Europe early 2020,” Bradshaw said.

TAP effectively started construction in Albania in June 2015 with the rehabilitation of access roads and bridges, and marked the occasion with a ceremony attended by Albanian Prime Minister Edi Rama and Energy and Industry Minister Damian Gjiknuri.

All the pipes to be used in TANAP already delivered | News.Az

Fri 15 January 2016 

Works on Trans-Anatolian gas pipeline – TANAP, which will transport gas from "Shah Deniz-2" field in Azerbaijan sector of the Caspian Sea to Europe via Turkey, are continuing apace. All of the 850 kilometers of pipes to be used in the project have already been handed over.

20 percent of the transferred 850-kilometer pipes, was produced in China, while the rest in Turkey.

Within the Project, two exit stations, connected by a network of natural gas recovery, will be installed in Eskisehir and Thrace within the borders of Turkey. TANAP length (19 km through the Marmara Sea) will be 850 kilometers, AzerTag reports.

TANAP will run from the Turkish border with Georgia, beginning in the Turkish village of Türkgözü in the Posof district of Ardahan, will run through 21 provinces, until it ends at the Greek border in the İpsala district of Edirne. it is planned to supply 6 billion cubic meters of gas to Turkey and 10 billion cubic meters — to Europe. By 2023, TANAP's capacity will rise to 23 bcm per year and then to 31 bcm by 2026.

Since the beginning of 2020, TANAP will take gas from the South Caucasus Pipeline to Greece, Albania and to Europe via Italy, by joining the TAP pipeline.

TANAP shareholders share in the project is as follows: "South" Corridor "Closed Joint Stock Company (JSC) - 58 percent," Botas "- 30 percent and BP - 12 per cent.
News.Az
SOURCE

Turkey hopes to catch up with Azeri gas by 2017: REPORT

January 13th, 2016

Turkish state importer Botas hopes to receive more gas from the Shah Deniz Phase 1 project by the end of 2017 to compensate for lower intake in the past, Zaman newspaper reported on January 12.

Botas pays before delivery from the Shah Deniz consortium, set at 6.6bn m³/yr. Over the past years, Azerbaijan has exported less than this volume owing to a lack of pipeline capacity inside Turkey. A gas compressor station was only installed in Erzurum in 2014.

The report says that the terms of the take or pay clause mean the total debt due to Azerbaijan for gas that Botas did not take – but had agreed to – was TL205.6mn lira ($114.9mn) as of the end of 2012 and TL687 million by the the end of 2013. This had risen further to TL892.9mn by the end of 2014.

The report added that Botas has until 2017 to even out its contractual offtake with its actual offtake.

In the first 11 months of last year Azerbaijan exported 6bn m³ of Shah Deniz gas, about 1.6% more than in the same period in 2014, operator BP told Natural Gas Europe December 25. The year before, exports from the field were 6.5bn m³.

The minimum annual volume of gas, which Turkey has to buy as a part of the agreement, is 5.2bn m³. Turkey has to pay $45/’000m³ for the gas it was contracted to take delivery of, but could not do so owing to the lack of capacity.

SOURCE

Analysis: Turkey Balances on Brink of Gas Supply Crisis | Platts

Istanbul (Platts) -- 21 Dec 2015 824

* Existing entry point capacity is 193 million cu m/d
* Peak Turkish demand could reach 215 million cu m/d
* More cuts of supply to CCGT plants expected 

All eyes in the Turkish gas market have been focused on the possibility of a cut in supplies from Russia in the wake of the November downing of a Russian fighter jet.

But even if all Turkey's gas suppliers fulfill their contracts, the country still faces serious problems.

Turkey's gas consumption last year reached 48.72 Bcm, 7.74% up on the 45.2 Bcm reported in 2013.

This year it was expected to exceed 50 Bcm, perilously close to Turkey's total import portfolio of 52.05 Bcm/year.

While that portfolio was last month boosted by a deal with Qatar for an unspecified number of spot LNG cargoes, that extra supply would only help cover any shortage caused if any of Turkey's other suppliers fail to deliver necessary volumes.

It could not overcome the limitations of Turkey's gas infrastructure, mostly operated by state gas importer and transit operator Botas.

Such is the fine balance between Turkey's potential daily maximum gas demand and the technical limitations of the country's gas infrastructure that all it would take to trigger a shortage is a particularly cold period.

Given the unpredictability of Turkish winters, that could happen any time between now and the end of February, or not all.

And given that any new pipeline gas will only arrive in Turkey at the end of 2018 at the earliest when first Shah Deniz gas arrives via the TANAP link, the tight supply/demand balance is likely to be an issue for the next three, possibly four, winters.

DAILY CAPACITY

In August 2014, Platts reported daily demand for gas could reach 215 million cu m/day, while Turkey's existing gas delivery infrastructure could supply a maximum of 193 million cu m/d.

The problem was confirmed the following month by then energy minister Taner Yildiz who said gas demand could exceed the system's ability to supply during the following winter if the country experienced extremely cold weather. Since then little has changed and therein lies the problem.

The capacity of the entry points to Botas grid remain unchanged: Four major pipeline entry points, two of which carry gas from Russia, one from Iran and one from Azerbaijan; two LNG terminals one on the Sea of Marmara operated by Botas and a privately operated facility at Aliaga on Turkey's Aegean coast; and one underground storage facility under the Marmara and some limited local production, itself in decline.

The only new addition to Botas's system is a new loop line across the Sea of Marmara that will not increase entry capacity but will allow flexibility transferring gas arriving from the south and east, northwest to Turkey's main demand center Istanbul.

As it happened, last winter proved mild by Turkish standards though the country still suffered a limited shortage when plummeting January temperatures caused gas demand to rise above supply.

'CURTAILMENT PROCEDURE'

A major crisis was avoided when the ministry implemented its 'curtailment procedure', a process of consultation involving state and private sector bodies.

The first stage sees state gas-fired power plants switching to fuel oil from gas.

A second stage sees major private CCGT plant ordered to cut gas burn by 50%, and a third sees those same plants being forced to burn fuel oil alone.

The procedure was implemented to stage three twice during January and February this year with nine major CCGT plants totaling 10 GW told to switch fuel.

That procedure has already been implemented to stage two once this winter, with operators of CCGT plant of over 500 MW instructed to cut gas burn by 50% from December 10-14.

That cut was made in the wake of a 50% cut in supply from Iran for 36 hours on December 8-10.

While private plants were given the go ahead to return to normal consumption, and private generators have told Platts that Botas has assured them that all of Turkey's gas suppliers are supplying at normal volumes, it was unclear whether the four state-owned gas fired plant totaling 3.78 GW have also been cleared to burn gas again.

CUT RISK

With Turkey's gas infrastructure unable to meet peak demand in cold weather, further cuts in supply and requests for fuel substitution were inevitable, an official from one private generator told Platts.

And that is not taking into account possible cuts from suppliers such as Iran and Russia.

These, he said, were a real possibility with Russia and Turkey still at loggerheads over the downed plane. If Gazprom were to supply only the minimum contracted gas volumes needed to meet its legal commitments, that would leave Turkey suffering a major shortage.

Although clearly a risk, such fears were not universally held.

Another official from Turkey's private power sector said that because Russia was facing financial difficulties, it would be wary of cutting existing revenue streams.

Any reduction, however limited, could prove serious.

While only 29% of Turkey's 72.5 GW installed capacity is gas-fired, this capacity generates anything up to 51% of the power consumed in a given month.

The variation depends on water levels in Turkey's hydro dams, which account for 35% of capacity.

With most of Turkey having experienced a particularly dry period at the end of November, state grid operator TEIAS said the dams held a total 2.528 trillion cubic meters (tcm) of water, down 20% on the volume anticipated in Turkey's 2015 generating program and 16% below the long-term average for November.

More worryingly, it was also down 13% on levels reported at the end of December 2014, only days prior to Turkey implementing its curtailment procedure and forcing private CCGT plant to switch to fuel oil.

So, while the winter remains mild, Turkey may escape without suffering any real hardship.

But it still seems under-prepared for significant shortages until TANAP begins pumping gas.

--David O'Byrne, newsdesk@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com

SOURCE