SFGate: On Conflict In Georgia Follow The Pipeline

[Dover]

On Conflict in Georgia
Follow the pipeline
Mark David Iden

The war in Georgia and the inadequacy of the West's response points again to the power of the Russian energy monopoly.

Europe fears protesting too much, as this might induce Russia to reduce the flow of natural gas to the continent this coming winter (Russia presently supplies 50 percent of Europe's natural gas).

Whether or not Russia marches on to Tibilisi, its assault on Georgia has further strengthened Russia's hold on Europe: Financiers are unlikely to back new proposed pipeline systems bringing Caspian oil and gas to the United States and Europe via Georgia...>

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/13/EDCD12A1TQ.DTL&feed=rss.opinion

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Conflict in Georgia narrows oil options for West

When the main pipeline that carries oil through Georgia was completed in 2005, it was hailed as a major success in the United States policy to diversify its energy supply. Not only did the pipeline transport oil produced in Central Asia, helping move the West away from its dependence on the Middle East, but it also accomplished another American goal: it bypassed Russia.

American policy makers hoped that diverting oil around Russia would keep the country from reasserting control over Central Asia and its enormous oil and gas wealth and would provide a safer alternative to Moscow's control over export routes that it had inherited from Soviet days. The tug-of-war with Moscow was the latest version of the Great Game, the 19th-century contest for dominance in the region.

A bumper sticker that American diplomats distributed around Central Asia in the 1990s as the United States was working hard to make friends there summed up Washington's strategic thinking: "Happiness is multiple pipelines."

Now energy experts say that the hostilities between Russia and Georgia could threaten American plans to gain access to more of Central Asia's energy resources at a time when booming demand in Asia and tight supplies helped push the price of oil to record highs.

"It is hard to see through the fog of this war another pipeline through Georgia," said Cliff Kupchan, a political risk analyst at Eurasia Group and a State Department official during the Clinton administration. "Moving forward, multinationals and Central Asian and Caspian governments may think twice about building new lines through this corridor. It may even call into question the reliability of moving existing volumes through that corridor."...>

http://www.iht.com/articles/2008/08/14/europe/14oil.php

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Nabucco Pipeline Highly Unlikely - Metropol
The agreement between Gazprom (GAZP.RS) and Turkmenistan to construct the Pri-Caspian gas pipeline, with a 30 billion cubic meter throughput a year, makes realization of the EU-backed Nabucco pipeline unlikely, says Metropol. 'The construction of this pipeline means that all Turkmen gas exported to EU will pass through Gazprom's income statement. The agreement implies that realization of the Nabucco pipeline seems highly unlikely,' says Alexei Kokin...cont'd

http://c.moreover.com/click/here.pl?z1530027270&z=950240583

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Analysis: Turkmenistan and Gazprom

July 31, 2008

Eurocrats perturbed by Gazprom's growing dominance of Europe's natural gas market and its hardball capitalist tactics, take heart -- several days ago Gazprom's mighty CEO Alexei Miller was humbled by Turkmen President Gurbanguly Berdimuhamedov. In tough negotiations Berdimuhamedov forced Miller to agree to pay "market rates" for future long-term deliveries of Turkmen gas, according to a brief Gazprom news release.
Only seven months ago Gazprom was paying Turkmenistan $130 per 1,000 cubic meters. Miller subsequently stated that deliveries to Eastern and Central Europe could rise as high as $400 to $500 per tcm by the end of the year. Only seven months ago Gazprom was paying Turkmenistan $130 per tcm.

How was Berdimuhamedov able to pull off his capitalist coup? The answer is simple: competition, most notably by waving competing Chinese and American interests in Miller's face. While the United States has been marginalized in Turkmenistan for a number of reasons, China has not. Since the 1991 implosion of communism, Berdimuhamedov's predecessor, "President for life" Saparmurat "Turkmenbashi" Niyazov, chafed as Gazprom paid a fraction of world market prices for Turkmen gas. Niyazov was stymied in that the former Soviet pipeline network monopoly was his sole access to the global market. When Niyazov died in December 2006, Berdimuhamedov was immediately courted by flocks of foreign energy companies eager to exploit the Caspian's last great frontier, and he decided to play some hardball with Gazprom himself.

The prize is not insubstantial: Turkmenistan's government estimates its onshore hydrocarbon reserves to be 21 billion tons of oil and an astounding 25 trillion cubic meters of natural gas; its Caspian offshore reserves are estimated to be 12 billion tons of oil and 5 trillion cubic meters of gas.

cont'd

http://www.spacedaily.com/reports/Analysis_Turkmenistan_and_Gazprom_999.html


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Turkey, Russia Energy Links Thaw

Thursday, 24th July 2008 - 00:00CET

Energy - Turkey-Russia energy links thaw
Reuters

Turkey wants to boost cooperation with its top gas supplier Russia, ending a frosty period marked by differences over the Nabucco pipeline to Europe, an official and analysts said.

Turkey gets most of its gas - 68 per cent of 2008 demand of 38 billion cubic metres (bcm) - from Russia's Gazprom under three long-term deals.

Nato member Turkey and Russia had a decade-long lull in economic relations after Ankara blamed Moscow for selling gas to Ankara at more expensive rates than to other buyers.

They were also at loggerheads after Turkey backed four European countries on the €7.9-billion Nabucco pipeline project planned to carry gas from the Caspian and Iran to Europe from 2013 to lessen Europe's dependence on Russia.

But a senior Turkish energy ministry source said the two countries were now talking again.

"A path has now been opened to doing business on several critical projects," the source, who asked for anonymity, told Reuters.

Russia had said any pipeline project without its gas was doomed to fail and challenged Nabucco by broaching the South Stream project, which plans a pipeline to Bulgaria and Italy from Russia via the Black Sea. The source said the two countries agreed during Gazprom's deputy CEO Alexander Medvedev's visit to Ankara last week to set up a joint company to run Turkey's urban gas grids...cont'd

http://www.timesofmalta.com/business/view/20080724/general/energy-turkey-russia-energy-links-thaw

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Turkey and Russia renew gas negotiations
July 24, 2008

Turkey wishes to strengthen cooperation with the largest supplier of gas, Russia, and to put an end to the period of the uneasy mutual relations saddened by disagreements concerning gas pipeline Nabucco, reports Reuters referring to Turkish sources.
Russia in the past declared, that any pipeline project is doomed to failure without its gas and has initiated gas pipeline buildings "the Southern stream" which should pass from the Russian Federation to Bulgaria and Italy through Black sea and it is considered competitor Nabucco

The source has informed, that during visit of the vice-president of board of Gazprom of Alexander Medvedev to Ankara last week Russia and Turkey have agreed to create joint venture which will operate urban gazoraspredelitelnyimi networks of Turkey. Besides, they have agreed about building of underground storehouse of gas in the central part of Turkey and carried on negotiations on resumption of the gas contract expiring in 2011.

//snip//

Gazprom offer also includes extension of gas pipeline Blue Stream to Israel. Pipeline Blue Stream in length of 1.200 kilometres is laid through Black sea from Russia to Ankara, its designed capacity makes 16 billion cubic metre of gas a year.

The source in a Department of Energy has informed, that besides extension of pipeline Blue Stream to Israel Gazprom also will consider possibility of that its petroleum division Gazpromneft delivered petroleum for the pipeline Samsun-Dzhejhan between Black and Mediterranean by the seas which project have offered Turkish Calik and Italian Eni...cont'd

http://fin-forex.com/turkey-and-russia-renew-gas-negotiations/


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Tuesday, July 22, 2008

TEHRAN (PIN) - The recent cooperation agreement signed between Russia"s Gazprom and Iran is causing Israel concern as it could prevent deals between Israel and the gas giant, Israel energy industry sources said July 16.

Under Israel law, local companies are barred from having business contacts with companies or institutions with substantial interests with Iran or Iranian companies.

On July 13, Gazprom signed a general cooperation agreement to set up a joint energy company to explore investment opportunities in Iran.

Iran and Gazprom agreed to cooperate in exploration and development of oil and gas fields in Iran, Russia and other countries as well as to jointly build transportation and processing facilities in the Middle Eastern country.

Under the agreement signed in Tehran, Gazprom also is expected to cooperate with Iran for the development of the giant North Azadegan oil field, as well as in a proposed $7bn pipeline project to ship Iranian gas to Pakistan and India, the so-called IPI project.

Last month, National Infrastructure Minister Benjamin Ben-Eliezer held talks in Moscow with Gazprom officials including CEO Alexei Miller...cont'd

http://www.shana.ir/132493-en.html


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Gazprom to fill Iran’s investment vacuum
July 21, 2008

Gazprom goes where no company has gone before... Well, notreally. But the Russian gas monopoly has signed a memorandumon cooperation in oil and gas production and transportationwith the National Iranian Oil Company (NIOC), whichmany companies in the world refuse to work with. Gazpromwill thus have the chance to strengthen its position in Iran,which has the world’s second largest gas reserves after – youguessed it – Russia.“Historically, they (Russians) have had much better relationswith that part of the world than the US and the West so it couldbe a natural vacuum that Russia could be looking to fill businesswise,” Ron Smith, chief strategist at Moscow’s AlfaBank, told New Europe, following media reports that Totalplanned to quit Iran.The French energy giant did not say outright that it was abandoningIran’s South Pars gas condensate field, but indicatedthat it was suspending investment. South Pars is one of thebiggest gas fields in the world, which is expected to producemore than 750 million cubic metres of natural gas a day whencompleted by 2014.

“We were associated for South Pars (Phase)11 in the upstream phase with Petronas, a Malaysian company,and in the downstream phase with Petronas and the NationalIranian Oil Company,” Total spokeswoman Lisa Wyler toldNew Europe. “Iran remains a key country for Total’s strategy, butright now it would be really too risky to invest there. We still thinkthat National Iranian Oil Company is a long-term partnership andwe hope that political relations will get better so that we can investonce they do, but right now it’s not possible,” she said, which ismusic to Washington’s ears.However, Gazprom has no problem increasing its investmentin the Iranian oil and gas sector right now...cont'd


http://www.neurope.eu/articles/88908.php


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Gazprom Shifts Position On

Saturday, July 19, 2008


The vice president of Russian gas and oil giant Gazprom said he had not ruled out the possibility of cooperating with Turkey on the Samsun-Ceyhan oil pipeline, which Russia has long opposed, following a meeting with Energy Minister Hilmi Güler late Thursday. Aleksei Medvedev also said the Russia-led Southstream project did not conflict with the European Union's Nabucco pipeline because Europe needs both pipelines

Evaluating Russia and Turkey's mutual energy projects, Güler said Gazprom's subsidiary company, Gazpromneft, is interested in supplying oil to the Samsun-Ceyhan oil pipeline. He also announced that Russia favors renewing the natural gas agreement with Turkey while negotiations on the main principles still continue. The agreement on the transfer of natural gas between Russia and Turkey through the western pipeline expires in 2011.

He noted that it is still not clear whether the state-run Turkish pipeline company, BOTAŞ, or the private sector will import natural gas from energy-rich Russia...cont'd


http://www.turkishdailynews.com.tr/article.php?enewsid=110221

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Gazprom Keeps the Heat on Europe by Pressing Libya
Posted by Matt in July 13th, 2008

This is example of Russian energy mercantilism. Russia locks up energy resources from other countries and takes it off the world market. Russia gains power at the expense of other countries.

OAO Gazprom, Russia’s state- sponsored gas monopoly, is offering to buy all of Libya’s oil and gas exports in a bid to increase its dominance over Europe’s gas market and enhance Russia’s political clout throughout the region.

Alexei Miller, Gazprom’s chief executive, made the offer on July 9th at a meeting with Libya’s head of state, Muammer Gaddafi.

Read More…

http://www.1913intel.com/2008/07/13/gazprom-keeps-the-heat-on-europe-by-pressing-libya/

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Russian Oil/Gas Website
http://russogasoil.blogspot.com/