Released March 20, 2014 | ISTANBUL
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Russia's state-owned gas giant Gazprom (PINK:OGZPY) (Moscow) has applied to develop Crimea's oil and gas sector. According to a report by the RIA Novosti news agency, Crimean First Deputy Prime Minister Rustam Temirgaliev said that Gazprom approached the country with a proposal.
The Crimean Parliament declared independence from Ukraine after a disputed referendum on Sunday, and applied to join Russia early this week. Also, Russian President Vladimir Putin, defying Ukrainian protests and Western sanctions, told the Russian Parliament that Russia will move forward to annex Ukraine's Crimean region. Last week, Temirgaliev said that the local authorities may sell the energy firm Chornomornaftohaz (ChMNG) to a Russian company "such as Gazprom," following annexation. The firm is now part of a Ukrainian state energy company.
Also, Ukraine warned it would seek compensation for the confiscation of ChMNG assets in Crimea by targeting the assets of Gazprom.
Most of Ukraine's gas is produced from its mainland fields, but some is generated from its offshore fields in the Crimea region. Ukraine's offshore fields, operated by ChMNG, a subsidiary of state-owned energy company Naftogaz Ukrayiny, last year increased gas production more than 40% to 1.65 billion cubic meters (bcm). ChMNG is targeting 3 bcm of annual gas output in 2015.
Naftogaz Ukrayiny, including ChMNG, produced 3.086 bcm in January and February, up 1.6% from 3.036 bcm a year earlier, according to Ukrainian Energy Ministry data. Ukraine's total gas output in January and February rose to 3.543 bcm, up 5.9% from the 3.346 bcm produced a year ago, according to the ministry.
"Over 50% of ChMNG's planned 2015 gas output will be sold domestically [in Crimea] at a relatively low price," said Evgeny Solovyov, an energy analyst at Societe Generale, based in London. "The region currently consumes 1.5 bcm of gas a year. We think the balance could be sold to Ukraine, where prices for Russian imports are currently at a par with the European Union's prevailing long-term contract prices."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The Crimean Parliament declared independence from Ukraine after a disputed referendum on Sunday, and applied to join Russia early this week. Also, Russian President Vladimir Putin, defying Ukrainian protests and Western sanctions, told the Russian Parliament that Russia will move forward to annex Ukraine's Crimean region. Last week, Temirgaliev said that the local authorities may sell the energy firm Chornomornaftohaz (ChMNG) to a Russian company "such as Gazprom," following annexation. The firm is now part of a Ukrainian state energy company.
Also, Ukraine warned it would seek compensation for the confiscation of ChMNG assets in Crimea by targeting the assets of Gazprom.
Most of Ukraine's gas is produced from its mainland fields, but some is generated from its offshore fields in the Crimea region. Ukraine's offshore fields, operated by ChMNG, a subsidiary of state-owned energy company Naftogaz Ukrayiny, last year increased gas production more than 40% to 1.65 billion cubic meters (bcm). ChMNG is targeting 3 bcm of annual gas output in 2015.
Naftogaz Ukrayiny, including ChMNG, produced 3.086 bcm in January and February, up 1.6% from 3.036 bcm a year earlier, according to Ukrainian Energy Ministry data. Ukraine's total gas output in January and February rose to 3.543 bcm, up 5.9% from the 3.346 bcm produced a year ago, according to the ministry.
"Over 50% of ChMNG's planned 2015 gas output will be sold domestically [in Crimea] at a relatively low price," said Evgeny Solovyov, an energy analyst at Societe Generale, based in London. "The region currently consumes 1.5 bcm of gas a year. We think the balance could be sold to Ukraine, where prices for Russian imports are currently at a par with the European Union's prevailing long-term contract prices."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
