JAN. 4 2016, TBILISI (The Conway Bulletin) — Amid low energy prices and economic strains, Russia’s state- owned Gazprom is reshaping its gas relations with countries in the South Caucasus and Central Asia.
It is effectively buying gas from Central Asia to sell on to Europe, China and, partly, to the South Caucasus.
Gazprom confirmed it will stop gas imports from Turkmenistan and, at the same time increase purchases from neighbouring Uzbekistan to 3.1b cubic metres.
“The basis for this decision is the changed situation on the international gas market, as well as certain economic and financial issues arising from the Gazprom’s exports,” it said in a statement.
Gazprom didn’t release price details with either Turkmenistan or Uzbekistan but its statement did confirm shifting alliances in Central Asia. Previously, Russia had imported heavily from Turkmenistan. This flow, though, has fallen as relations between the two countries grew increasingly strained. Turkmenistan wants to supply Europe with gas, via Azerbaijan and Turkey, putting it in direct competition with Russia.
Last year, Turkmenistan effectively signalled that Russia had stopped paying for its gas.
But Gazprom needs to buy Central Asian gas to honour its deals with China and Europe, as well as making new deals in the South Caucasus.
Gazprom already supplies Armenia with gas and is negotiating export deals with Georgia and Azerbaijan who both need to meet domestic power consumption.
Rovnag Abdullayev, president of Azerbaijan’s state-owned energy company SOCAR, met with Alexei Miller, Gazprom’s CEO, in December to discuss 2016 volumes.
“The possibility of increasing [Russian gas] supplies taking into account the prospects for growth in natural gas consumption in the country was considered,” SOCAR said in a statement.
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(News report from Issue No. 262, published on Jan. 8 2016)
