The prospect of Sino-Russian gas cooperation could be very broad and more importantly decades of negotiation, joint projects and interactions have laid the foundation for future cooperation.
In 2015, LUKOIL Group total hydrocarbon production increased by 2.8 % y-o-y and reached 2.379 million boe per day. Crude oil production* increased by 3.6 % y-o-y to 100.7 million tons.
“Today, we signed a number of important documents aimed at further advancing the dialogue with our strategic partner OMV. Our relationship is no longer limited to business. By consistently enhancing our cooperation, we are moving toward our ambitious goals – increasing the supplies of Russian oil and gas to Europe and developing the scientific and technical potential of our companies.”
Natural gas consumption in the 28-nation European Union grew by some 4% last year to 426.3bn m3, according to latest estimates from Eurogas, the trade association representing 43 gas wholesale and distribution companies.
The deal, which resolves arbitration proceedings between E.ON and Gazprom, will lead to a positive one-off effect of about 380 million euros ($425 million) on E.ON's core earnings (EBITDA) in the first quarter of 2016.
“The company continues to improve its efficiency responding to the challenges of the global market. In Q4 2015 upstream operating expenses per boe and maintenance expense of the Russian refinery in RUB terms slightly increased in comparison with Q4 2014, despite of the growth in industry prices by 10.7%. Increase in earnings before interests, tax and depreciation by 17.8% in 2015, in terms of significant decline in RUB and USD denominated oil prices show an effective control over operating costs that allowed the Company to reduce its debt burden considerably, significantly increasing the sustainability of the business in challenging macroeconomic environment”
It says that two thirds of the gas will flow towards the Central European Gas Hub in Baumgarten, Austria. “This hub offers ideal connectivity and can handle large flows to central, east, southeast and south European countries, boosting their gas markets to comparable levels of liquidity and competiveness as in northwest Europe.”
Turkey has for the first time imported liquefied natural gas (LNG) from the US in 2016, said the message from Turkey’s Energy Market Regulatory Authority (EMRA).
Rosneft set a new record, having increased hydrocarbon production up to 254.2 mmtoe (5.16 mmboed). Development drilling meterage increased by 36% and reached 6.9 mln meters. More than 1.8 thousand of new wells were commissioned.
The parties addressed strategic bilateral cooperation. It was noted that the collaboration between Gazprom and Chinese energy companies and financial institutions was consistently developing.
India is replacing China as the center of the world’s oil demand growth as its economy expands faster than any other major country and Prime Minister Narendra Modi has made energy security a priority for the nation, which imports 80 percent of its oil requirements.
In 2015, the total overdue debt increased by 19.8 per cent, from RUB 127 billion to RUB 152.1 billion; the gas payment rate decreased by 1.4 per cent to 96.2 per cent. The debt is held mainly by the population, heating companies, and electric power enterprises. Over 80 per cent of the debt is borne by the consumers of the North Caucasian Federal District (RUB 48.6 billion or 81.4 per cent of the total consumer debt in Russia as of January 1, 2016).
“The US has sought to work with Europe to lessen Europe's dependence on Russian energy and, particularly, gas supplies to weaken Russian leverage to use that gas supply for political purposes and has enjoyed some success, and this has been a cooperative venture. Three administrations working in the same direction, many of the same assumptions and people.”
This supply growth, with ebbs and flows, is likely to continue. The Russian medium- to long-term optimism is that gas will be a growth fuel – a clean, adaptable C02-light fuel that could replace coal across the world into the 2020s.
China's total oil imports rose about 20 percent on year to the highest ever on a daily basis in February, when near 10-year low global oil prices drove buying from a group of new importers and for state and commercial stockpiling.