Russia signals price cut
Güncelleme Tarihi:
by Barçın Yinanç
Oluşturulma Tarihi: Kasım 12, 2008 00:00
Ä°STANBUL - As Turkey struggles with the recent price hike on natural gas, Gazprom heralds good news. According to an official the price of natural gas that Russia sells to Turkey will fall 20 percent next year if oil prices remain at their current levels. He says Russia does not see Nabucco as a rival project
The price of Russian natural gas sold to Turkey will fall 20 percent in 2009 if oil prices remain at current levels, an official from Russia’s gas giant Gazprom said late Monday.Â
Turkey relies almost exclusively on imported energy and is Gazprom's second largest client after Germany. A hefty natural gas price hike earlier this month angered Turkish consumers and businesses.
"With the unprecedented volatility of oil prices this year, we can only make projections. In the fourth quarter this year, price levels will reach a maximum. From January, prices will go down," said Sergei Komlev, director of Gazprom's export arm, Gazpromezport.
Under fierce criticism from European countries for using energy sources as a political tool, Gazprom has launched a public relations campaign in response.
Earlier this year Gazprom informed Azerbaijan, Turkmenistan, Uzbekistan and Kazakhstan that it was ready to pay more than European market prices for their gas. This offer was perceived as an attempt by Russia to control oil and gas supplies to Europe from the Caspian basin and central Asia. It was also seen as stripping away much of the economic rationale for the proposed United States and European Union backed Nabucco pipeline that if built, would transport gas to Europe from the Caspian via Turkey.
Nabucco not a competitor
"We do not consider Nabucco a rival project," said Komlev, adding, "According to forecasts of the International Energy Agency, by 2020 Europe will need about 100 [billion cubic meters] of additional natural gas, transported by pipeline. All projected pipelines will be required in order to meet energy demands."
Komlev said Gazprom had not received an offer to participate in Nabucco, but it would consider an offer if there was an official invitation. "We have read statements of certain officials in Turkey and Hungary that it would be good (to have Gazprom in the project) as this would increase the security of supply," said Komlev, adding some people in the EU and the United States believed Gazprom’s participation was contradictory to the reasoning behind the pipeline project. Both the EU and the United States support Nabucco as they want to reduce their dependence on Russian energy supplies.
"As far as Turkmenistan is concerned, we are interested in keeping it in our portfolio. It is important for our supply and demand balance. We cannot replace it, so we increased the price we offered to them. It is only natural," said Komlev. As for Azerbaijan, Komlev said Baku does not have lucrative agreements with Georgia and Turkey.
"There is a pipeline with a capacity of five to six billion cubic-meters per year along the Caspian Sea which is not operational. We offered to buy Azerbaijani gas, to service customers in the Caucasian republics," said Komlev, adding that with the deal, Azerbaijan would have the means to develop its fields to provide gas to the Nabucco pipeline.
Turkey has the final say
on Second Blue Stream
The volume of gas flowing from Russia to Turkey through the Blue Stream pipeline under the Black Sea will increase to 14 billion cubic-meters in 2009 and 16 billion in 2010, from a current level of 10 billion, he said.
A second Blue Stream pipeline could be constructed between Turkey and Russia after the existing pipeline reaches its 16 billion cubic metres capacity, Komlev said, adding, Turkey would have the final say on the issue.
Turkey relies almost exclusively on imported energy and is Gazprom's second largest client after Germany. A hefty natural gas price hike earlier this month angered Turkish consumers and businesses.
"With the unprecedented volatility of oil prices this year, we can only make projections. In the fourth quarter this year, price levels will reach a maximum. From January, prices will go down," said Sergei Komlev, director of Gazprom's export arm, Gazpromezport.
Under fierce criticism from European countries for using energy sources as a political tool, Gazprom has launched a public relations campaign in response.
Earlier this year Gazprom informed Azerbaijan, Turkmenistan, Uzbekistan and Kazakhstan that it was ready to pay more than European market prices for their gas. This offer was perceived as an attempt by Russia to control oil and gas supplies to Europe from the Caspian basin and central Asia. It was also seen as stripping away much of the economic rationale for the proposed United States and European Union backed Nabucco pipeline that if built, would transport gas to Europe from the Caspian via Turkey.
Nabucco not a competitor
"We do not consider Nabucco a rival project," said Komlev, adding, "According to forecasts of the International Energy Agency, by 2020 Europe will need about 100 [billion cubic meters] of additional natural gas, transported by pipeline. All projected pipelines will be required in order to meet energy demands."
Komlev said Gazprom had not received an offer to participate in Nabucco, but it would consider an offer if there was an official invitation. "We have read statements of certain officials in Turkey and Hungary that it would be good (to have Gazprom in the project) as this would increase the security of supply," said Komlev, adding some people in the EU and the United States believed Gazprom’s participation was contradictory to the reasoning behind the pipeline project. Both the EU and the United States support Nabucco as they want to reduce their dependence on Russian energy supplies.
"As far as Turkmenistan is concerned, we are interested in keeping it in our portfolio. It is important for our supply and demand balance. We cannot replace it, so we increased the price we offered to them. It is only natural," said Komlev. As for Azerbaijan, Komlev said Baku does not have lucrative agreements with Georgia and Turkey.
"There is a pipeline with a capacity of five to six billion cubic-meters per year along the Caspian Sea which is not operational. We offered to buy Azerbaijani gas, to service customers in the Caucasian republics," said Komlev, adding that with the deal, Azerbaijan would have the means to develop its fields to provide gas to the Nabucco pipeline.
Turkey has the final say
on Second Blue Stream
The volume of gas flowing from Russia to Turkey through the Blue Stream pipeline under the Black Sea will increase to 14 billion cubic-meters in 2009 and 16 billion in 2010, from a current level of 10 billion, he said.
A second Blue Stream pipeline could be constructed between Turkey and Russia after the existing pipeline reaches its 16 billion cubic metres capacity, Komlev said, adding, Turkey would have the final say on the issue.