• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 45 mins Emissions Need To Be Halved To Avoid 3C Warming
  • 4 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 13 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 2 hours Solar Panels at 26 cents per watt
  • 4 hours Coal Boom in Asia is Real and a Long Trend
  • 8 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 14 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 7 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 12 hours Trudeau approves Trans Mountain Pipeline
  • 14 hours The Plastics Problem
  • 7 hours US to become net oil exporter in November: EIA
  • 4 hours US Shale Drilling lacks regulatory body.
  • 5 hours Huge UK Gas Discovery
  • 5 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
Why The Oklahoma Shale Boom Isn’t Taking Off

Why The Oklahoma Shale Boom Isn’t Taking Off

Major geological challenges and relatively…

Why Gazprom Just Resumed Purchases Of Turkmen Gas

pipelines

Gazprom has begun buying natural gas from Turkmenistan after a three-year pause, under a 25-year contract signed in 2003 and suspended in 2016.

Until 2010, Russia’s gas giant was the biggest buyer of Turkmen gas, Reuters recalls in its report on the story, adding that this was the year when Turkmenistan began exporting gas to China. This must not have sat well with Gazprom, for whom China is a major target market, so the company began reducing its intake of Turkmen gas.

However, the exports to China were not the biggest problem. In 2015, Turkmengaz, Gazprom’s counterpart in Turkmenistan, accused the Russian company of owing payments for gas deliveries. It even declared Gazprom insolvent, to which the Russian major responded with a lawsuit, in which it insisted that the prices it paid for Turkmen gas be reviewed. It also demanded a compensation of US$5 billion alleging it had overpaid for the gas.

A year later, Gazprom completely stopped buying Turkmen gas and switched to Uzbekistan as gas supplier instead.

As of 2010, Gazprom imported between 40 and 50 billion cubic meters of gas from Turkmenistan. To date, the Central Asian country produces around 70 billion cubic meters, of which 40 billion cubic meters are exported to China.

Turkmenistan has natural gas reserves estimated at 265 trillion cu ft, according to the U.S. Energy Information Administration. This makes it the sixth-largest gas reserves holder globally. However, Turkmenistan has yet to reap the full benefits of its oil wealth. The country lacks the transport infrastructure that would make it a player to reckon with on international markets.

Still, investments are on the rise and besides the Turkmenistan-China gas pipeline, which is the largest gas export pipeline in Central Asia, the country is also part of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project. The pipeline is scheduled to start operating next year at a rate of 33 billion cubic meters annually.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News