HIGH TIME TO REANIMATE THE GAS SECTOR

A total of $1bn is required for the rehabilitation of the gas complex in Azerbaijan, as the government sources urge. The countrys gas sector, which has not been renewed since the collapse of the Soviet regime. Today the gas reservoirs, main gas pipelines, gas distribution network, including Garadagh gas refiner plant are in need of reconstruction. It is also necessary to resolve a problem with collection of low-pressure associated gas, which makes negative impact on the transportation system, results on the corrosion and finally impacts on the quality. As a result provision of full collection it will be possible to obtain a doubled volume of gas for countrys internal demand. This gas could be transferred to the gas refinery plant, and partially fulfill the gas pipeline in Sangachall

Taking into consideration the current state in the world markets the issue becomes an urgent task. The resolution of the problem with the collection of gas would eliminate the necessity of Russian gas import, which is sold at $110 per 1000 cu m at present with strong suppositions of rise in future. Iran is nor considered a reliable partner as well.

Due to losses of gas at present only 30% of gas is refined at the gas refinery plants. Numerous efforts to privatize the plant every time ended in failure. The government now thinks it would be more expedient first to reconstruct the plant, including the gas distribution network, and then transfer it t private ownership at more favorable terms.

With a strong will to assist Azerbaijan in the reconstruction of the gas sector, the World Bank presented to the Ministry of Industry and Energy a program which envisages repair of main gas pipelines and improvement of the existing technical networks, expansion of gas reservoirs. Different projects included in it comprised $1bn. However, the bank itself can finance, or participate in the syndication of financing of projects and can allot only $50-100m out of funds of the International Bank for Reconstruction and Development, which is not favorable for Azerbaijan at all. In this respect the utilization of internal resources is also expected efficient, where the operator of Shah Deniz are expected to be the most interested investors.

There are two gas reservoirs used today in Azerbaijan Garadagh and Kalmaz gasholders. This total capacity is up to 1.1bn cubic meters of gas. Following extension, capacity of Garadagh gasholder is raised to 2.2bn cubic meters and that of Kalmaz to 1.2bn 1.03bn cubic meters of gas. The conversations on financing the extension project are conducted at the moment. World Bank is interested in financing this project. Preliminary cost of the project is $120mln. Azerbaijan may issue some part of funds to execute the project.

The World Bank is ready to finance a project on collection of law-pressure gas on the shallow water Guneshli field and transport to the sea shore through constriction of gas compressor station in the vacant part of the Guneshli-4 platform Last year the ank approved a $481,250 grant in this respect.

Around 1.6m cu m of low-pressure gas is wasted on shallow water Guneshli and around 800,000 cu m on the Chirag field.

The construction of gas compressor station on free part of the Guneshli-4 platform will allow to extract 4.9bn cu m of gas per year from the Guneshli field by 2010. At present the figure is equal to 2.2bn cu m of gas. The gas transportation pipeline should be built for delivery of gas to Oil Rocks and onwards to the coast.

Thus, we have perspective plans for future. As to present, work on improvement of gas delivery to outskirts of Baku is underway. 28m manats are expected to be spent on gas supply of regions. 20m manats of the total sum will be granted by the Azerbaijani public budget and 8m manats at the expenses of Azerigass private funds. The project will cover the villages and settlements of Baku. Under the project to end in 2007 it is planned to build gas compression stations for increase of pressures of delivered gas, main pipelines, as well as necessary control equipment. At present gas supply of these villages is too poor.

This year it is planned to implement a program on gas supply of Azerbaijani regions. At present they number four Lerik, Yardimly, Agjabadi and Beylagan. Work here will start in mid 2006 and end late 2007. Azerigas also carries out the development of feasibility study on gas supply to villages in 49 districts of the country. First of all, the gas delivery will be implemented at the expense of village where it was sod earlier.

The reanimation of the countrys gas sector will be held along with the project in the sphere of carbon financing. Over the subsequent 3-5 years Azerbaijan will more opportunities for obtaining carbon incomes in million dollars through strengthening the energy sector, in the sphere of returns, woods and agriculture. The office of the World Bank asserts it can be achieved through the implementation of project on increase on emission of gas making a heat effect. Member-countries of the Organization for Economic Cooperation and Development (OECD) can buy 0.5-0.8 billion ton of gas, which was utilized, by means of investing in these projects. As a result of implementation of commitments on Kiot agreement till 2012 these projects are intended to decrease gas emission with the market estimation of from 20-25 billion to 3 billion tons. Today 97% of returns in Azerbaijan are implemented in the energy sector.

Oxford Institute for Energy Research talks options for Turkmen gas sector's development
Oxford Institute for Energy Research talks options for Turkmen gas sector's development
Microsoft earnings in spotlight for signs of business recovery, Xbox growth
Microsoft earnings in spotlight for signs of business recovery, Xbox growth
"Great Responsibility" At Republic Day Parade: Bangladesh Contingent Chief
"Great Responsibility" At Republic Day Parade: Bangladesh Contingent Chief
Loading Bars
Latest
Volume of overdue loans up in Georgia
Kazakhstan Development Bank eyes supporting several modernization projects in 2021
Iranian Energy Exchange announces products to be on sale on January 27
Azerbaijan International Telecom company signs contract to buy software
In upward revision, IMF sees Turkey growing at 6% in 2021
Kyrgyzstan's Institute of Business Ombudsman, Economy Ministry sign memorandum of cooperation
Georgian Foreign Minister tests positive for Covid-19
Iran's foreign trade balance hits $59 billion in 10 months
Cities, villages to be established in liberated areas should be based on concept of “smart-city”, “smart-village" - President of Azerbaijan
War has shown many what Azerbaijan's potential is - President Aliyev
Internet in Azerbaijan is free – there is no censorship, no restrictions - President Aliyev
Reforms going on everywhere, reforms are inevitable, country faces new challenges - President of Azerbaijan
Government agencies, ministries and state-owned companies must follow my instructions to end - President Aliyev
We must always build our policy in such way that Azerbaijan's military potential and defense capabilities are always at high level - President Aliyev
We must create conditions for our talented young people to work in Azerbaijan - President Aliyev
When we launched satellites into orbit, some people asked why this was necessary - President Aliyev
Azerbaijan plays central role in region in field of communications and high technologies - President Aliyev
Heydar Aliyev International Airport in Baku is five-star airport - President of Azerbaijan
PACE rejects Armenia’s request on progress of monitoring procedure
We have largest fleet in Caspian Sea - President of Azerbaijan
As result of measures taken, Azerbaijan today is one of world's leading countries in field of transport - President Aliyev
Russia's Charge d'Affaires in Azerbaijan summoned to Azerbaijani MFA
Azerbaijan's Ecology Ministry talks development of entrepreneurship
FAO to start developing agriculture in liberated Azerbaijani lands soon
Demining of Azerbaijan's liberated lands continues (VIDEO)
Russia to directly participate in efforts to unblock economic, transport ties in S. Caucasus - Lavrov
Economy minister discloses share of non-oil sector in Azerbaijan's GDP
Azerbaijan starts preparation work on laying gas lines to liberated lands
Azerbaijan shows footage from Gubadly district's Damirchilar village (PHOTO/VIDEO)
Iran welcomes interaction with Saudi Arabia
Iran can increase oil and gas extraction - National Iranian Oil Company
Bahar Azadi gold coin price continues to fall in Iran
Oxford Institute for Energy Research names ways to improve oil, gas sector in Turkmenistan
Azerbaijani, Turkish FMs discuss regional co-op issues
Bulk of Kazakhstan’s imports of green vegetables falls on Uzbekistan
Georgia sees decline in COVID-19 cases since imposing restrictions
Uzbekistan, Kazakhstan plan to start construction of high-speed railroad
Ukrainian air company returns on Georgia's aviation market
Ministry discloses number of mines neutralized by Azerbaijani, Russian sappers in Karabakh (VIDEO)
Uzbekistan’s GDP per capita down in 2020
Oxford Institute for Energy Research talks options for Turkmen gas sector's development
Uzbekneftegaz reveals number of investment projects on increasing production efficiency
Kazakhstan’s QAZAQ AIR airline launching flights on one more route
Georgian aviation plant working on creation of military drone
Uzbek-Korean JV announces tender for installation and assembly services
GGF deepens its engagement with Georgian financial institutions
Number of passengers using railway transport in Azerbaijan increasing after eased quarantine
Kazakhstan to continue decreasing import dependence in food industry
Azerbaijani business entities modernize digital financial services amid COVID-19 pandemic
Lending to Azerbaijan’s Nakhchivan Autonomous Republic increases
Iranian trucks start cargo transportation to Azerbaijan without transshipment
Azerbaijan confirms 551 more COVID-19 recoveries
Kazakhstan taking targeted measures to enhance investment competitiveness
Iran and Russia sign memorandum of cooperation on cybersecurity
Azerbaijan reveals volume of electricity generation from renewable energy sources in 2020
Russia and Iran open to discuss Karabakh issue
Number of bank accounts in Azerbaijan’s Nakhchivan increased in 2020
Microsoft earnings in spotlight for signs of business recovery, Xbox growth
French engineering company involved in replacing Uzbekistan’s standards in electricity field
UNDP implements new grant program in Georgia
Azerbaijan's former minister of transport appointed to new position - Decree
Company of Turkmenistan’s SC announces volume of oil produced last year
Iran's South Pars gas production increases
Johnson & Johnson promises vaccine data "soon"
Azerbaijan discloses number of servicemen of engineering troops martyred in second Karabakh war
Kazakhstan to continue work on fishing industry development
Iran plans to use domestic ship building capacities
Iranian minister suggests parliament merge Energy and Oil Ministries into one
Azerbaijani delegation to participate in Iran Plast exhibition in Tehran
Clearing of mines, unexploded ordnance continuing in Azerbaijan's liberated Fuzuli district (PHOTO/VİDEO)
Iran's Rouhani opposes any changes to budget bill
"Great Responsibility" At Republic Day Parade: Bangladesh Contingent Chief
Direct air routes between Cambodia, India on the cards
`Vaccine Maitri' helps strengthen bilateral ties with Myanmar, says Indian envoy
COVID-19 vaccine developer CureVac plans five million share sale
EU exec to propose vaccine export registration by end of week
Azerbaijani ministry talks on nanotechnological innovations
Meeting of the Foreign Ministers of Russia and Iran being held
Rates for some excisable goods increasing in Azerbaijan
All tobacco products may be included in list of excisable goods in Azerbaijan
Tax exemptions on wheat imports, sales may be extended in Azerbaijan
Colonel talks restored and built roads in liberated lands of Azerbaijan
FIG cancels holding Artistic Gymnastics World Cup in Azerbaijan’s Baku
Thousands of hectares of cultivatable lands demined in Azerbaijan's liberated districts
Azerbaijani banks buy more foreign currency at CBA's auction
Iran reveals COVID-19 data for January 26
Sale of gold, silver in Azerbaijan may become tax-free
Azerbaijan Airlines increases flights number on Baku-Nakhchivan route
Access Bank eyes creating bank branches in Azerbaijani lands liberated from occupation
Azerbaijan's Nakhchivan discloses revenues from 2020 agricultural export
Azerbaijani Nakhchivan's revenues from communication services rise
President Aliyev receives French Minister of State attached to Minister for Europe and Foreign Affairs (PHOTO)
Uzbekistan’s largest flow of tourists falls on Kyrgyzstan
Georgia sees increase in Domestic Producer Price Index for Industrial Products
Armenian Armed Forces blew up bridges, destroyed roads retreating during second Karabakh War
Gold price increases in Azerbaijan
Scientist of UNEC elected expert on world's second largest online economic platform
Iran wants establishment of six-party cooperation union – Zarif
Kazakhstan's Altynalmas gold processing company introduces digital technologies to boost output
Volume of shrimp grown in Iran announced
All news