GAZPROM GROWS STRONGER
Price adjustments in the gas markets caused by a drop in oil quotations hadn't affected the dominant position of Asia-Pacific as a driver of growing global gas consumption. Following the expert reviews, by 2025 the region's demand for imported gas might grow 1.5 times from present 280 billion cubic meters to over 400 billion cubic meters a year.
Meanwhile, cheaper oil made the contractual prices linked to gas indexes, for instance, to Henry Hub, less appealing. Under the current conditions, oil linkage is becoming more attractive for customers, since its advantages include predictability and protection from other players' manipulations.
By gradually diversifying its geographic footprint, Gazprom is running the project for gas supply to China via the eastern route. The talks are well underway on exporting Russian gas to China via the western route. The possibility is being considered for supplying gas to China from Russia's Far East.
The Company's pipeline projects are backed up by LNG business, the main market for which is Asia-Pacific. During the last ten years the Company sold 60 per cent of LNG products there. The major customers are Japan and South Korea. Great attention is given to expanding the sales market and the scope of work at niche and new regional markets in Asia, Latin America and the Middle East.
Currently the Company's long-term portfolio is mostly represented by supplies from Sakhalin II. Today the project operator is getting ready for developing the project documentation for the third process train of the plant.
"Sakhalin II allows for a partnership with global energy majors and proximity to the key markets of Asia-Pacific. It means a five-year success of Russia's first ever and world's most efficient LNG project," stressed Alexander Medvedev.
In order to increase liquidity, Gazprom actively expands its LNG portfolio due to new long- mid- and short-term deals as well as spot gas supplies. In the near future the Company's portfolio will be supplemented by receipts from the Yamal LNG project. Contracts for LNG purchase were signed with Nigeria and Malaysia. As a result, in the last two years Gazprom doubled its LNG portfolio. The bulk of these volumes will be delivered to Asia-Pacific.
"Despite certain economic crisis phenomena, Gazprom owns sufficient resources and goes on consistently advancing its East-oriented activities.
We are sure that under the current market conditions the Company will considerably strengthen its presence in the Asia-Pacific market," said Alexander Medvedev in the end.
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WNA - Apart from adding capacity, utilisation of existing plants has improved markedly since 2000. In the 1990s capacity factors averaged around 60%, but they have steadily improved since and in 2010, 2011 and 2014 were above 81%. Balakovo was the best plant in 2011 with 92.5%, and again in 2014 with 85.1%.
WNA - India has a flourishing and largely indigenous nuclear power programme and expects to have 14.6 GWe nuclear capacity on line by 2024 and 63 GWe by 2032. It aims to supply 25% of electricity from nuclear power by 2050.
WNA - Mainland China has 38 nuclear power reactors in operation, about 20 under construction, and more about to start construction. The reactors under construction include some of the world's most advanced, to give a 70% increase of nuclear capacity to 58 GWe by 2020-21. Plans are for up to 150 GWe by 2030, and much more by 2050.
PLATTS - "The domestic uranium mining industry needs US government assistance to survive the foreign onslaught -- particularly from Russia and Kazakhstan -- that has undermined the US uranium industry while new players -- particularly China -- will soon make the situation worse," Energy Fuels and Ur-Energy said in a petition they jointly filed with the department.