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Review of Turkmenistan's gas transportation projects for December 2020

Oil&Gas Materials 28 December 2020 09:13 (UTC +04:00)

BAKU, Azerbaijan, December 28

By Jeila Aliyeva - Trend:

Turkmenistan ranks fourth in the world in terms of natural gas reserves after Iran, Russia, and Qatar according to a report by British Petroleum (BP).

The largest resources are concentrated in the Mary region in the east of the country. The reserves of Galkynysh will be reviewed due to the high probability that the field goes beyond the existing boundaries in the North-West and South-East directions.

The area of the field is 4,000 square kilometers, where 40 wells are located, the flow rate of each of which is on average equal to 2 million cubic meters of gas per day.

According to the program for the development of the country's oil and gas industry, gas production is planned to reach 230 billion cubic meters by 2030, most of it for export.

Completed projects:

Commonwealth of the Independent States (CIS)

Central Asia – Center gas pipeline (CAC)

The CAC gas pipeline was put into operation in the late sixties of the last century with a capacity of up to 80 billion cubic meters per year. Over time, its capacity has decreased, estimated to 40-50 billion cubic meters per year, and reconstruction is required.

Until 2016, a major buyer was Gazprom (Russia), which signed a 25-year gas supply agreement with Turkmenistan in 2003. In 2016, the deal was terminated on the initiative of the Russian side, but in 2019 deliveries resumed.

Project status:

Russia's Gazprom increased gas purchases from Turkmenistan-from 1.2 billion cubic meters in 1H2019 to 1.7 billion cubic meters in 1H2020.

In July last year, Gazprom signed a contract for the purchase of natural gas from Turkmengas State Concern for a period of five years (until June 30, 2024).

According to the contract, the volume of gas supplies will be up to 5.5 billion cubic meters per year. The volume of deliveries under the short-term contract from April 15 to June 30, 2019, amounted to 1.2 billion cubic meters of Turkmen gas per year.

Until 2009, Gazprom was the largest buyer of Turkmen gas, buying up to 40-42 billion cubic meters. Subsequently, the volume decreased to 10-11 billion cubic meters per year, and in 2015, the annual volume was more than halved and amounted to 4.0 billion cubic meters.

Gazprom explained the reduction in the volume of purchases by reducing demand in Europe. Due to the fall in gas export prices, which are linked to constantly falling oil prices, the price of Turkmen gas set at $240 per 1,000 cubic meters has ceased to suit the Russian side.

China.

Trans-Asia Gas Pipeline (Turkmenistan-China).

The gas pipeline was put into operation in 2009. The buyer is China National Petroleum Corporation (CNPC).

The total length of the pipeline, which originates from the Malay field and the fields on the right bank of the Amu Darya river, is more than 9,000 kilometers. Of these, 490 kilometers are laid on the territory of Uzbekistan, 1,304 kilometers-Kazakhstan, and more than 7,000 kilometers on the territory of China-to the main industrial centers such as Shanghai, Guangzhou, Hong Kong, from where gas is distributed through other networks.

Turkmenistan is the leader in terms of pipeline gas exports to China. Turkmenistan has increased the supply of pipeline gas to China to 78.3 billion cubic meters per day. Thus, by June of this year, deliveries increased by seven percent in daily terms and exceeded the volume of deliveries in February of this year.

Most of the gas supplied by the Turkmen side to China was extracted from fields operated by Turkmengas State Concern.

Project status

CNPC buys natural fuel in the Central Asian region after the launch of the first two branches of the gas pipeline "A" and "B" from Turkmenistan through the territories of Uzbekistan and Kazakhstan. In May 2014, a third branch line, "C", was put into operation, which also runs along this route, ending in Khorgos, China.

In 2021, the volume of Turkmen natural gas supplied to China annually, according to plans, can be increased to 65 billion cubic meters. In 2019, according to official data of the Turkmen side, it was planned to export 40 billion cubic meters to China.

Iran.

Korpeje–Kordkuy pipeline (Turkmenistan-Iran).

The gas pipeline was opened in December 1995. The capacity is 8 billion cubic meters per year. The buyer of gas is the national gas export company of Iran.

The length of the gas pipeline from the Turkmen Korpeje field to the Iranian city of Kurt Kui is 197 kilometers, of which the length on the territory of Turkmenistan is 132 kilometers.

Official Ashgabat reported that 6.0 billion cubic meters were delivered to Iran in 2017, compared to 7.0 billion cubic meters a year earlier. In January 2017, supplies, as reported by the Turkmen side, were limited due to debts of $1.8 billion.

Dovletabad-Sangbast gas pipeline (Turkmenistan-Iran)

The opening of the gas pipeline took place at the end of December 2009. The length of the Turkmen section of the highway, which originates from the Dauletabad Gas Field in the South-East of Turkmenistan, to settlement Salyr Yap settlement on the border with Iran is 30.5 kilometers.

The capacity is up to 6 billion cubic meters per year. A related branch line in Iran-from Serakhs to the settlement of Sangbast via Hangeran was launched in November 2010.

East-West pipeline.

Project status.

The commissioning of the East-West gas pipeline in December 2015 contributed to the multiplicity of Turkmenistan's export routes.

The 773-kilometer gas transmission system has a capacity of 30 billion cubic meters per year.

The construction was carried out by Turkmengas and Turkmenneftegazstroy State Concerns. The approximate cost of the project is more than $2 billion.

The East-West gas pipeline is designed to transport fuel from the largest fields in the Eastern regions - Galkynysh and Dovletabad - to other gas pipelines in the country, increase the volume and reliability of gas exports, as well as for domestic gas supply.

The construction of this pipeline was carried out from the Shatlyk gas compressor station, located in the Mary velayat (region), to the Belek gas compressor station in the Balkan velayat.

The East-West pipeline can be used in the supply of Turkmen gas to Europe, both along with the traditional route-through Russia and through the Caspian Sea. Experts believe that the best option would be to lay a 300-kilometer gas pipeline through the Caspian Sea to the coast of Azerbaijan, which could become a transit point for Turkmen gas to Turkey, and then to European markets.

The ongoing project of gas pipeline TAPI (Turkmenistan-Afghanistan-Pakistan-India).

The buyers are gas companies from Afghanistan, Pakistan, and India.

The participating states created a consortium TAPI Pipeline Company Limited, the leader of which was elected Turkmengas SC, which secured a controlling stake. Negotiations with potential participants are continuing.

The project is promoted by the Asian Development Bank (ADB), which plays the role of its transactional adviser.

In December 2015, a shareholder agreement was signed between Turkmengaz and the companies Afghan gas Enterprise, Pakistan Interstate gas systems (Private) Limited and Gail (India) Limited.

TAPI's resource base will be Galkynysh, the second-largest gas field in the world (after South Pars in Iran).

A consortium consisting of Japanese JGC, Mitsubishi, Itochu, Chiyoda, Sojitz, and Turkish Chalik Group of Companies, Ronesans Endustri Tesistleri Insaat Sanayi mu Ticaret Anonim Sirketi can be connected to the third stage of development of the gas hearth. However, there were no practical steps afterward.

Project status:

The Turkmen section of TAPI began construction in December 2015.

The total length of the TAPI gas pipeline with a capacity of 33 billion cubic meters of gas per year is estimated to be 1,840 kilometers. The Turkmen section will be 205 kilometers. Then the power bridge will pass through the Afghan cities of Herat and Kandahar - 816 kilometers, on the territory of Pakistan-819 kilometers, through the cities of Quetta and Multan, and reach the settlement of Fazilka in India.

The basic document is the Ashgabat interstate agreement of the participating States signed in 2010 at the beginning of the practical implementation of the TAPI project.

The Turkmen side plans to complete the construction of TAPI on its territory this year, and next year to start construction on the territory of Afghanistan.

Turkmenistan has allocated $1.2 billion for the implementation of projects with the participation of Afghanistan.

Also, Turkmenistan and Afghanistan signed a memorandum of understanding on the selection of land plots on the Afghan part of the TAPI gas pipeline project.

Projects under discussion.

AGRI.

Turkmenistan is showing high-level interest in the project.

AGRI (Azerbaijan-Georgia-Romania Interconnector) - provides for the supply of liquefied Caspian gas through the Black sea coast of Georgia to Romania.

To supply this project with Turkmen gas, as in the case of other projects, it is necessary to build a separate gas pipeline line along the bottom of the Caspian sea to the coast of Azerbaijan or to supply liquefied gas by tankers through the sea.

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Follow the author on Twitter: @JeilaAliyeva

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