Gazprom calls for energy efficiency
Russian gas giant Gazprom said gas consumers need to take more responsibility in ensuring energy efficiency and conservation for the security of gas supplies to Europe, Gazprom Deputy Chairman Alexander Medvedev said in Moscow.
"Without the interests of suppliers, adequate responsibility of transit countries and adequate access for producers to a liberalized market in Europe, all of these talks will only benefit journalists, who are trying to frighten Gazprom like little children," Medvedev said.
He sharply criticized the position of European officials, who, in December-January, were ambivalent about the position of Ukraine in the now resolved gas dispute with Russia.
Despite events, Medvedev said Gazprom, the world's largest gas company, would continue to be a guarantor of reliable natural gas supplies to Europe.
But Medvedev expressed disappointment over the recent tendency in the media and some organizations like the International Energy Agency to look for a political aspect to Gazprom's business.
Gazprom expects to earn some $33 billion in export revenue in 2006, while the company's forecast for physical export volumes remains unchanged at 151 billion cubic meters.
Gazprom gets 51 percent in TNK-BP's gas field
Russian-British venture TNK-BP offered Russian gas giant Gazprom a controlling stake in a holding company to develop the large Kovykta gas condensate field, Victor Vekselberg, executive director for gas projects at TNK- BP, said in Moscow.
The Kovykta natural gas field could potentially be the largest in Eastern Siberia and the Far East.
TNK-BP is looking to create a venture holding company formed of four companies. The license to develop the field currently consists of Rusia Petroleum with a 62.4 percent stake; InterRos Holding to own a 25.82 percent stake; and the Irkutsk regional administration at 11.24 percent.
In regards to equity distribution, TNK-BP plans to give its subsidiary, Rusia Petroleum, a controlling stake in the venture, while allowing Gazprom to acquire 100 percent of a transport company that will operate both regional and export pipelines.
Vekselberg said TNK-BP wants "the same distribution as for the holding company, but gas should be exported via an agent agreement with Gazexport."
Under the venture, another company would process gas and third parties are welcome to participate in the company's activities.
TNK-BP would assume a leading position in the company producing Kovykta gas "as we have experience connected with the analysis of geological information for the field, and we think that we will handle this more effectively," Vekselberg said.
Although he did not mention at what price TNK-BP is prepared to offer the Kovykta stake to Gazprom, Vekselberg said Gazprom could acquire this stake for cash, or in exchange for assets.
East Siberian Gas Co. is developing a project to construct a regional gas pipeline from the Kovykta field, while TNK-BP mulls suppliers, which could include China.
Shell, Gazprom to ink Sakhalin-2 deal before July
Russian gas giant Gazprom and Royal Dutch Shell plan to sign a cooperation agreement allowing the Russian company to join the Sakhalin-2 oil and gas project before July, Alexander Medvedev, deputy chairman of Gazprom, told reporters Monday.
Gazprom is also in talks on the Sakhalin-2 project with other participants: Japan's Mitsui and Mitsubishi.
In July 2005, Gazprom and Shell agreed to secure a deal that would give Gazprom a 25 percent plus one share in the Sakhalin-2 project, while the British-Dutch venture would acquire a 50 percent stake in the Neokomskoye deposit of the Zapolyarnoye field, which is located in the Yamalo-Nenets Autonomous District.
Sealing the deal was delayed due to massive project cost overruns as Gazprom learned of the project challenges when it signed off on the swap deal, which was announced July 7, 2005.
"Gazprom was aware ... that there were cost challenges," Shell CEO Jeroen van der Veer said in July 2005 when he learned of the extent of the cost when a six-month review of the project was completed. "However, we were not aware, so we could not make Gazprom aware, that there were such significant further cost overruns,"
Gazprom immediately demanded a renegotiation of the terms of its swap deal with Shell
In late February, the two sides set up a working group on Gazprom entering the Sakhalin-2 project as investments in the second stage of the Sakhalin-2 project are expected to double to $20 billion by 2014, according to an estimate submitted to the Russian government by Sakhalin Energy holding, which is developing the Sakhalin-2 project.
Georgian firm to build natural gas storage facility
Georgian state-controlled Saknaftobi plans to construct a natural gas storage facility, the first in Georgia, Soso Gudushauri, director of Saknaftobi's geology department, told reporters Monday.
Saknaftobi hopes to attract foreign investors to participate in the project, which is expected to cost between $50 million and $60 million.
The gas storage facility will be designed to meet Georgia's consumption for two months "in emergency situations," Gudushauri said.
Following Georgia's gas crisis, a storage facility would help it ameliorate the effects of any future occurrences.
Earlier this year, Gazprom raised the price of gas supplies to Georgia to $110 per 1,000 cubic meters from $64 per 1,000 cubic meters.
Georgia, meanwhile, saw a disruption in its Russian gas imports due to an explosion at a gas pipeline in Russia's constituent republic of North Ossetia-Alania in January. Georgian President Mikhail Saakashvili had accused Russia of deliberately organizing the explosion to put political pressure on Georgia.
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Closing oil prices, March 15, 3 p.m. London
Brent crude oil: $63.82
West Texas Intermediate crude oil: $62.65
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