Azerbaijan, Iran, Russia create joint energy corridor
Azerbaijan, Iran and Russia are considering the possibility of creating a joint energy corridor, Azerbaijani Economy Minister Shahin Mustafayev, who is on a visit to Tehran, told reporters on March 13.
He said that representatives of the three countries are conducting relevant talks.
"We have a successful cooperation [with Iran] in the energy sector. We are moving from the cooperation in a bilateral format to a trilateral format - Russia, Iran and Azerbaijan," the minister said.
Mustafayev further noted that Azerbaijan and Iran intend to cooperate in the sphere of oil and gas production in the Caspian Sea.
Earlier the Azerbaijani Energy Ministry announced about the possibility of creating an energy corridor "North-South" on a par with the transport corridor of the same name.
"Both countries are working hard in the transport sector. The North-South corridor is being established -- not only transport, but also energy corridor. It envisages the export of electricity from Russia to Azerbaijan and further to Iran. A special working group has been established in this regard. The energy ministers of three countries are working on this issue," the ministry said in a message.
President Aliyev: TANAP to strengthen Azerbaijan-Turkey relations
The Trans-Anatolian Natural Gas Pipeline (TANAP) project will strengthen the relations between Azerbaijan and Turkey, Azerbaijani President Ilham Aliyev said at a meeting with Turkish Prime Minister Binali Yildirim, who is on an official visit to Baku, on March 14.
The head of state noted that the Azerbaijani-Turkish relations of friendship and brotherhood will further develop successfully.
"We are friends, brothers, we stand by each other in all issues, we support each other. This is the case today, and should always be such way. We are bound by very deep relations. We cooperate at a very high level in the political, economic, and all other spheres. Political ties are at the highest level. There are good results in the economic sphere. Trade turnover increased last year. Mutual investments are being made. Turkey invested in Azerbaijan, and Azerbaijan invested over $10 billion in Turkey," the head of state noted.
President Ilham Aliyev stressed that investment making is underway and will reach much greater indicators.
"This year we will jointly mark the commissioning of the TANAP project. This is a historic project that is completing successfully. It will strengthen the relations of our countries and, at the same time, open up new opportunities for the countries using this project. Last year, we solemnly marked the opening of the Baku-Tbilisi-Kars railway. Today, the route is already successfully operating. After Baku-Tbilisi-Ceyhan, TANAP is our third historic project; our countries jointly implemented this project. That is, our cooperation has very good results in all spheres. These results are very important for our peoples, our countries and are of great importance for Eurasia," President Aliyev underlined.
TAP to turn Italy into one of main energy hubs - country manager
The Trans Adriatic Pipeline (TAP) project, which envisages transportation of Azerbaijani gas to Europe, will turn Italy into one of main energy hubs, said Michele Mario Elia, TAP's country manager for Italy
"TAP is considered a strategic project, because it will ensure more competitive prices for gas supplies to Europe. Furthermore, it will strengthen energy independence by ensuring greater security for member states," he told Italian media.
Elia noted that the initial capacity of the pipeline will be 10 billion cubic meters of gas per year, coming from the Caspian Sea, which will meet energy needs of 7 million families.
Thanks to TAP, Italy will become one of the main energy hubs of Europe, as well as the gateway for Azerbaijani gas supplies to the European market, he added.
With the implementation of TAP project, the country will get benefits in terms of economic development, energy sustainability as a result of reduction of carbon dioxide, said Elia.
He pointed out that the Italian state has always supported the implementation of TAP project as a tool to diversify its energy supply.
TAP will fulfill general safety principles throughout the entire construction and operation phase, said the country manager.
The pipeline project is based on high standards and best practices recognized nationally and internationally, he added.
TAP project, worth 4.5 billion euros, is one of the priority energy projects for the European Union (EU). The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.
Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy to connect to the Italian natural gas network.
The project is currently in its construction phase, which started in 2016.
Once built, TAP will offer a direct and cost-effective transportation route opening up the vital Southern Gas Corridor, a 3,500-kilometer long gas value chain stretching from the Caspian Sea to Europe.
TAP shareholders include BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).
SOCAR reveals volume of oil supplies to Ukraine
Azerbaijan's state oil company SOCAR supplied 45,340 tons of Azeri Light oil to the Kremenchug refinery in Ukraine in February 2018, a source in the oil and gas market of Azerbaijan told Trend March 14.
The source said that oil pumping to the Ukrainian refineries (mainly Kremenchug refinery) increased by 44 percent to 142,540 tons in February as compared to February 2017.
"Some 45,340 tons of Azeri Light oil was pumped through the Odessa-Kremenchug pipeline. In the first two months of 2018, the pumping of Azeri Light to the Kremenchug refinery stood at 106,090 tons," the source said.
Azerbaijan exported oil worth $77.587 million to Ukraine in January-February 2018, and Azerbaijan accounted for 96.7 percent of oil supplied to Ukraine.
UkrTransNafta OJSC, the operator of the oil transportation system of Ukraine, resumed the operation of the pipeline from Odessa to Kremenchug from March 10, 2017, and began transporting Azeri Light oil to the Kremenchug refinery. The agreement signed in late 2016 envisaged the transportation of at least 1.3 million tons of Azeri Light oil to the Kremenchug refinery in 2017.
Kremenchug refinery processes Azeri Light oil since December 2016.
Fitch expects Azerbaijan's Southern Gas Corridor CJSC to raise loans
Net financial needs of the Southern Gas Corridor (SGC) CJSC for operations and capital expenditure will be close to $2.2 billion in 2018-2019 taking into account proceeds from the operation of Shah Deniz field and South Caucasus Pipeline, Fitch Ratings, the international rating agency, said in its report.
Fitch expects SGC to raise loans from development institutions and tap debt capital markets for funding in the medium term.
In 2017, SGC also secured direct financing of its stakes in the projects from the following international financial institutions: $0.4 billion from IBRD (International Bank for Reconstruction and Development, part of World Bank group), $0.6 billion from Asian Infrastructure and Investment Bank, $1 billion from Asian Development Bank, $0.5 billion from European Bank for Reconstruction and Development, all of which were fully guaranteed by the Republic of Azerbaijan, according to the report.
The Southern Gas Corridor is one of the priority projects for the EU and provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.
At an initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Shah Deniz Stage 2, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
Для проекта "Южный газовый коридор" может быть привлечено дополнительное финансирование
БАКУ /Trend/ - В 2018-2019 годах ЗАО "Южный газовый коридор" дополнительно понадобиться почти 2,2 миллиарда долларов США на покрытие операционных и капитальных расходов.
Как отмечается, таковы прогнозы менеджмента ЗАО с учетом поступлений доходов в рамках операций на месторождении "Шах Дениз" и Южнокавказского трубопровода.
Международное рейтинговое агентства Fitch ожидает, что в среднесрочной перспективе ЗАО привлечет дополнительные кредиты от финансовых организаций и с рынков капитала.
Отмечается, что в 2017 году "Южный газовый коридор" обеспечил прямое финансирование своих долей в проектах за счет следующих займов: 400 миллионов долларов (Международный банк реконструкции и развития, входит в группу Всемирного банка), 600 миллионов долларов (Азиатский банк инфраструктуры и инвестиций), один миллиард долларов (Азиатский банк развития), 500 миллионов долларов (Европейский банк реконструкции и развития). Все эти кредиты полностью гарантированы правительством Азербайджана.
Проект "Южный газовый коридор", стоимость которого превышает 40 миллиардов долларов, является одним из приоритетных для ЕС проектов и предусматривает транспортировку 10 миллиардов кубометров азербайджанского газа из Каспийского региона через Грузию и Турцию в Европу.
На первоначальном этапе газ, добываемый в рамках второй фазы разработки азербайджанского газоконденсатного месторождения "Шах Дениз", рассматривается в качестве основного источника для проектов "Южного газового коридора". На более позднем этапе к проекту могут быть подключены другие источники.
Газ в рамках второй стадии разработки месторождения будет экспортироваться в Турцию и на европейские рынки путем расширения Южнокавказского газопровода и строительства Трансанатолийского (TANAP) и Трансадриатического (ТАР) трубопроводов.
Azerbaijan completing first stage of assessment at SOCAR Polymer plant
Azerbaijan's Economy Ministry is completing the first stage of assessment at SOCAR Polymer, a polymer plant of Azerbaijan's state oil company SOCAR, in Sumgait city, the country's Deputy Economy Minister Niyazi Safarov said at a conference titled "Public-Private Cooperation in Creating Innovation Clusters: Available Assets and Use of Local Raw Materials" in Baku March 16.
The project will help the facility's products to enter the Azerbaijani market as raw materials for production, he said.
"For this purpose, negotiations with a number of companies are already underway," Safarov said.
He noted that an innovation cluster will be created at the SOCAR Polymer. This work will be implemented with the support of the Economy Ministry and the Research Institute of the Ministry, he added.
Safarov said that a register of state assets, which may be directed to the development of the industry, is being prepared in Azerbaijan.
The SOCAR Polymer project is carried out in Sumgait Chemical Industrial Park.
At the first stage, production capacity of SOCAR Polymer will total 120,000 tons of polyethylene and 180,000 tons of polypropylene. The total capacity may reach 570,000 tons by 2021.
Turkmenistan invited Azerbaijan to participate in TAPI project
Turkmenistan is inviting Azerbaijan to cooperate as part of the TAPI project, Turkmen Ambassador to Azerbaijan Mekan Ishanguliyev said at a briefing in Baku.
He said that this project will contribute to the social and economic development of the region.
The total length of the TAPI gas pipeline will be 1,840 kilometers. Construction of the Turkmen section of the TAPI gas pipeline began in December 2015.
Construction of the Afghan section of the TAPI gas pipeline started Feb. 23, 2018. The pipeline is scheduled to run along the Kandahar-Herat Highway in western Afghanistan, and further through the cities of Quetta and Multan in Pakistan. The pipeline's route will end in the Indian city of Fazilka.
A 205-kilometer section of the pipeline will run through Turkmenistan, an 816-kilometer section will run through Afghanistan and an 819-kilometer section will go through Pakistan.