Russia’s dominance in global gas markets in absence of Iran

Russia’s dominance in global gas markets in absence of Iran

By Dalga Khatinoglu

Iran's Deputy Oil Minister Hamidreza Araqi announced on November 19 that Shoorijeh gas storage facility, located in the northeastern province of Khorasan, will not come on stream in the current Iranian calendar year (to end March 20, 2014).

This means that the country still remains highly dependent to gas imports from Turkmenistan. But while Iran still needs to import gas from neighboring countries to meet its domestic demands, Russia which has less gas reserves compared to Tehran, is developing its dominance in the global gas markets.

The Mehr News Agency reported on November 19 that the Shoorijeh gas storage facility will not come on stream in the coming winter.

According to the latest report released by United States' Energy Information Administration (EIA), Iran's gross gas output in 2011 was around 224 billion cubic metres. Some 67 percent of the mentioned amount was turned into dry natural gas, while 16 percent was injected to the oil wells, and some 17 percent was burned.

The British Petroleum Company also said in its latest report that Iran's dry natural gas output in the previous year was around 160.5 billion cubic meters.

In general Iran's dry natural gas output plus the amount injected to the oil wells stand at 570 million cubic meters per day.

It is while the Mehr News Agency has reported that based on the data collected by Iran's Oil Ministry, the country needs over 700 million cubic meters of gas per day in the coming winter.

Iran's gas consumption in the warm months is low. So the country could have stored some considerable amount of gas in its storage facilities for the cold months. But currently just the Sarajeh gas storage facility with 3.3 billion cubic meters capacity is operational, which can only supply enough gas for 5 days of consumption at the mentioned rate.

In the calendar year of 1390 (which ended on March 20, 2012), Tehran imported 12 billion cubic meters of gas from Turkmenistan. But Ashgabat reduced its exports to Iran to 4.5 billion cubic meters and the trend still continues. It is while based on the signed contract, Iran is obliged to export 10 billion cubic meters of gas to Turkey each year.

Russia's dominance in global gas markets

Iran has the world's biggest gas reserves equal to 33.6 trillion cubic meters, but has no surplus gas to export. However, unlike Iran, Russia is rapidly developing its gas dominance in the global markets.

According to a report published by BP, Russia with 592.3 billion cubic meters was the world's second largest gas producer in 2012, next to the United States with 681.4 billion cubic meters. Moscow exported over 170 billion cubic meters of the mentioned amount. The country annually buys around 30 billion cubic meters of gas from Kazakhstan, Turkmenistan, and Azerbaijan in order to export the gas to other countries. By purchasing gas from the mentioned countries, Russia ensures its monopoly in exporting gas to the western countries.

The Russian government totally exported 130 billion cubic meters of gas to the European countries in the previous year. Moscow also exported 56 billion cubic meters of gas to Belarus, Ukraine, and Armenia. The country's liquid gas exports also stood at 14.8 billion cubic meters in 2012. China, Japan, and South Korea were the main destinations for Russia's liquid gas exports.

By exporting gas to over 20 members of the European Union, Russia supplies 25 percent of the block's total gas need. It is while Moscow is gradually increasing its gas exports to EU's eastern and central members. Except for Romania, which has its own gas reserves, other central European countries meet averagely 70 percent of their gas needs by importing from Russia.

According to the EU's latest official report for 2013, Russia increased its gas exports to the block by 10 percent in the first half of the current fiscal year compared to the same period of time previous year.

Russian gas pipelines towards East & West

Russia exports gas to Europe (plus Turkey) through Yamal, Blue Stream and North Stream pipelines, however in details, the number of fine and coarse pipelines transferring Russian gas towards West (passing from Ukraine, Belarus and beyond them) is 22 pipelines in framework of 13 projects.

Russian Gazprom has a monopoly on gas exports.

According the official statistics published both on GASPROM website and BP report, The mentioned pipelines total gas export capacity is above 250 billion cm p/a.

However, Russia has some other pipeline construction projects, including North Stream 1 and 2 as well as South Stream pipelines. After implementation of these projects the country's total gas export capacity via pipelines to Europe would reached to above 380 billion cm p/a until 2025.

Russia also decided to realize an east route pipeline within the framework of the Eastern Gas Program, aimed at exporting 30 billion cm p/a of gas to China until 2015 as well as supplying gas to other Asia-Pacific markets.

Despite the fact that Iran holds greater gas reserves than Russia, it does not supply the European Union. Iran has even fallen short of fulfilling its obligation to export 10 billion cm p/a to Turkey. Yet the country could supply only 7.5 billion cm to Turkey in 2012, according to BP annual report.

Iran also has been abandoned from the TAP project, which would be connected to Turkey's TANAP project, aimed at exporting Caspian Sea and Middle East gas to Europe.

The EU has accelerated installing liquid natural gas (LNG) terminals to strengthen diversification of imports. However, all of Iran's LNG production plans have been halted due to sanctions and the country hasn't any LNG production to export.

However, Qatar, Iran's partner in joint giant field South Pars, exports 19.2 bcm of natural gas and 105.4 bcm of LNG annually.

According to the BP report, Qatar exported 33.1 bcm and 66 bcm of LNG to Europe and Asia-Pacific respectively during 2012.

Iran who holds 18 percent of the world's total gas reserves had no share in 1.033 trillion cubic meters exported gas on the international markets in 2012 and yet has to import Turkmenistan gas to make it through the winter.


Dalga Khatinoglu is Iran News Service head of Trend Agency

Subscribe to Trend in Google News! Subscribe
Georgia becomes member of UN World Tourism Organization Executive Board
Georgia becomes member of UN World Tourism Organization Executive Board
Azerbaijan records growth in prices for hotel services - Hotels & Restaurants Association
Azerbaijan records growth in prices for hotel services - Hotels & Restaurants Association
Iran updates COVID-19 protocols for international travelers
Iran updates COVID-19 protocols for international travelers
Loading Bars
Japan PM Kishida likely to cancel U.S. visit due to Omicron
Militants kill at least 31 in central Mali, say local authorities
Tunisia confirms 1st case of Omicron variant infection
Turkey confirms 21,495 daily COVID-19 cases
France announces new travel restrictions
IMF chief says Omicron could dent global economic growth
France evacuates more than 300 people from Afghanistan
UK records more than 50,000 new coronavirus cases
Italy's economy projected to grow 6.3 pct this year
Kazakhstan decreases petroleum gas export to Hungary amid global pandemic
Militants kill 7 soldiers in Nigeria's northeastern Borno state
Iran nuclear talks adjourn, resume next week
South Africa hit by fourth COVID wave driven by Omicron
Budget for social rehabilitation and childcare to reach 52 mln GEL next year, Georgian PM says
Putin informs Erdogan on main results of Sochi trilateral meeting
Turkey introduces action plan to improve lives of the disabled
Construction of 50MW solar power plant underway in Kazakhstan
Azerbaijani FM, OSCE rep exchange views on OSCE Charter (PHOTO)
Human remains discovered in Caspian Sea and recovered - SOCAR
Iran highlights need for more customs cooperation with Pakistan
bp discloses investments in construction of power plant in liberated Azerbaijani lands
Turkmen gas may be supplied to Europe via Caspian Connector project - ambassador
Turkish, Russian Presidents hold phone talks
Azerbaijan’s Pasha Holding talks about development strategy
Azerbaijan's Heydar Aliyev Foundation, UNICEF sign another memorandum of understanding (PHOTO)
Azerbaijan shares data on number of vaccinated citizens
Azerbaijani, Turkish military pilots conduct joint training flights in Baku (PHOTO/VIDEO)
Azerbaijan confirms 1,703 more COVID-19 cases, 2,180 recoveries
Turkmenistan can supply natural gas to European market until 2050 - ambassador
Azerbaijan discloses export volume of petroleum coke
Azerbaijan's Finance Ministry to auction gov't bonds via Baku Stock Exchange
SOCAR begins testing of new mobile diving complex
Israeli co Fireblocks raising $400m at $8b valuation
Croatia remains one of Russia’s key partners in EU
Value of goods transported via road increases in Azerbaijan
U.S. job growth misses expectations in Nov.
Policy and Management Consulting Group shares data on Georgia’s economic outlook
Georgia, Qatar discuss favorable investment climate
Price indexes of financial, trade sectors at Uzbek stock exchange fall
Uzbekneftegaz obtains new industrial gas flow from Kulbeshkak field
Uzbek Statistics Committee shares data on imports of meat for 10M2021
Georgia’s economic climate remains stable – PMC
Uzbekistan reveals volume of bank loans allocated to various sectors of economy
Iran, Turkmenistan and Azerbaijan gas swap - win-win deal, says Iranian analyst
FMs of Azerbaijan, Poland hold meeting within OSCE Ministerial Council
Co-op between Turkmenistan, EU to focus on improving business climate till 2027
Azerbaijan's food import volume down for 10M2021
Zones free from animal diseases being created in Azerbaijan’s Karabakh, East Zangazur
Azerbaijan considers opening Indonesian Chamber of Commerce
Azerbaijan increases chemical production volume for 10M2021
Azerbaijan, Turkey begin work on establishing joint university - minister
Azerbaijan’s liberated territories have several types of renewable energy sources– RES agency
Azerbaijani parliament adopts amendment to servicemen insurance law
Azerbaijan may exempt sale of electric cars from VAT
Azerbaijan introduces excise taxes on electronic cigarettes, shisha
Concept for creation of "green energy" zone in Azerbaijan’s liberated territories prepared
Transaction to sell Chinese oil company’s stake in Azerbaijan closed
Output volume at Azerbaijan’s Kursangi, Garabagli fields revealed
Austrian interior minister becomes candidate for country’s next chancellor
Azerbaijan begins geological exploration at Tutkhun gold deposit in Kalbajar
Iran to import hay from Russia
Uzbek home appliance manufacturer Artel joins United Nations Global Compact
Economic stability - framework of Iran`s next year budget
BioNTech CEO confident of quickly adapting vaccine for Omicron
Situation is still fragile in South Caucasus - OSCE Chairperson-in-Office
Azerbaijan to strengthen social protection of population in 2022 – PM
Azerbaijan may exempt import of books and paper from VAT
Iran reveals its non-oil trade in 7 months
Iran aims to build new oil, gas refineries amid growing consumption
Uzbek Central Bank shares data on leading banks in terms of loans
Azerbaijani PM talks on measures to curb price increase
Iran seeks to establish joint banking network with Syria
Azerbaijan to expand agriculture dev’t in Karabakh in 2020 – minister
Demining of water basins in Azerbaijan's liberated Fuzuli, Aghdam underway - ministry
Azerbaijan removes electronic bracelets from 134 convicts within amnesty act
India seeks strong ties with EU, cooperation in transition to clean energy
Dubai's DP World pulls out of Haifa port privatisation bid
Azerbaijani Artillery Units hold live-fire exercises (PHOTO/VIDEO)
Azerbaijan to change state duties on issuing registration plates of road vehicles
Georgian business sector sees average monthly salary increase
Cementing ties with France, UAE places $19 bln order for warplanes, helicopters
Azerbaijan preparing development strategy for Karabakh - Karabakh Revival Fund (PHOTO)
Man of Armenian origin who attacked Azerbaijani soldier neutralized – MoD
Azerbaijan releases 14 prisoners from correctional institution № 16 as part of amnesty act (PHOTO)
Azerbaijan releases 122 prisoners from correctional institution within amnesty act (PHOTO)
Australia calls on Azerbaijan, Armenia to delimit and demarcate state borders
Azerbaijan sees growth of trading via Baku Stock Exchange
Azerbaijan to release 65 female prisoners within act of amnesty
Georgia’s domestic supply of natural gas slightly decreases
Azerbaijan clears almost half of "Araz Valley Economic Zone" Industrial Park of mines - minister
Azerbaijan releases seven prisoners within act of amnesty (PHOTO)
Azernews newspaper selected as media partner of ECO from Azerbaijan (PHOTO)
bp is first company to use flexible approach in management of energy resources during pandemic
Turkey’s fuel exports to Georgia plummet
EU firms in infrastructure sector spent higher share of their investment on energy efficiency
Azerbaijan to strengthen control over allocation of subsidies
Share of EU firms investing in improving energy efficiency falls
Partnered with Azerbaijani banks, VISA actively developing technologies for issuing digital cards
Azerbaijan expands list of goods not covered by VAT refund
Georgia’s electricity exports triple
All news