RUSSIA - GEORGIA TRANSIT
NGW - The Georgian government has agreed with Gazprom proposals over gas transits via Georgia's territory and will sign a deal for 2017 and 2018, its energy minister Kakha Kaladze told reporters in Tbilisi. Gazprom Export will now pay a transit fee in cash, rather than in the form of gas supplies, as in the past.
"Today, at a cabinet meeting, we discussed the the latest Gazprom Export proposals on terms for the transit of natural gas to Armenia", Kaladze told reporters January 11 following a meeting with Gazprom Export head Elena Burmistrova in Minsk January 10.
According to Kaladze, after "several rounds of negotiations Georgia [the government] got the best offer and decided to execute the contract," Interfax reported. "Also, we have the opportunity to meet the seasonal needs if necessary and to receive additional volumes of natural gas at a discounted price – of $185 per '000m3 instead of $215", the minister said.
The proposed contract will be signed for two years and in 2017 Georgia will receive a transit fee partly by natural gas, said Kaladze, adding: "It was the best solution, given the current situation."
Kaladze did not give details of amount of transit payment, pointing out simply that it will be adequate with what the country had before.
The new agreement will not increase of Georgia's dependence on Russian energy resources. "We will change only the form of payment for transit. As for the fee, it will be compatible with the European countries," sources in Georgia energy ministry told NGW.
Gazprom Export made a package proposal to Georgia on the transit of Russian gas to Armenia and gas supplies to Georgia, the company said in a statement.
"Gazprom Export made a package proposal on the mutually beneficial conditions, which will guarantee Georgia income from gas transportation services and increase security of the country energy supply," Burmistrova was quoted saying in the statement.
Annual gas consumption in Georgia is around 2.5bn m3 with a large chunk of that supplied by neighboring Azerbaijan.
Georgia also receives 10% of the total volume transited across its territory of Russian gas transited to Armenia.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.