• 4 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 13 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 minutes Iran in the world market
  • 18 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 48 mins USA Wants Iran War -- Shooty Shooty More
  • 37 mins Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 hour USA : Attack came from 'Iranian soil'. Pompeo to release 'evidence'.
  • 7 hours Never Bring A Rapier To A Gun Fight
  • 10 hours Bahrain - U.S.: Signed Deal To Buy Patriot Missiles
  • 1 hour Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 10 hours Trump Will Win In 2020 And Beyond..?
  • 12 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 12 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 7 hours Aramco Production
  • 10 hours Democrats and Gun Views
A Fracking Ban Will Never Happen

A Fracking Ban Will Never Happen

Democratic candidates are ramping up…

China Just Got Handed The Oil Deal Of A Lifetime

China Just Got Handed The Oil Deal Of A Lifetime

China and Russia are sewing…

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
Download on the App Store Get it on Google Play