LNG

Gazprom, the Russian natural gas company impacted by sanctions after the invasion of Ukraine in 2022, is trying to rebuild its business by signing deals for gas transportation exits via the three Central Asian former Soviet states of Kazakhstan, Uzbekistan and Kyrgyzstan as well as its neighbour across the Black Sea, Turkey.

Gazprom has just signed contracts with Kazakhstan for gas transit to Uzbekistan and Kyrgyzstan.

The documents were signed at the St. Petersburg International Economic Forum held by the Russians.

Gazprom has ambitious plans to ramp up gas supplies to Central Asia and Turkey.

The company aims to deliver significantly larger volumes via the Central Asia-China Pipeline for 15 years starting in 2025. 

The Central Asia-China pipeline is a network of natural gas pipelines that transport natural gas from Turkmenistan, Kazakhstan, and Uzbekistan into China.

With a 55 billion cubic metres capacity, the same as the now defunct Nord Stream 1 pipeline from Russia to Germany, the 1,833-kilometres (1,140 miles) Central Asia-China Pipeline presently comprises three sections (Lines A, B, and C), running from Turkmenistan through Uzbekistan and Kazakhstan to China’s Uygur Xinjiang Autonomous Region.

From there, the pipeline links up with the West-to-East Gas Pipeline in China, underscoring its significance in regional energy dynamics.

Gazprom added that it had also signed a contract for the supply of gas to the north and south of Kyrgyzstan.

Larger volumes

In addition, Gazprom and Kazakhstan signed an action plan to prepare gas facilities in Central Asia to increase the transportation of Russian gas to Uzbekistan.

In June 2023, Uzbekistan concluded a two-year gas purchase agreement with Gazprom.

The daily supply volume is 9 million cubic metres and the annual volume is almost 2.8 billion cubic metres and deliveries started in October 2023.

From November 2025, Gazprom said it planned to begin supplying “significantly larger volumes” covered by 15-year contracts with Kyrgyzstan, Kazakhstan and Uzbekistan.

In February 2024, it was reported that the government of Uzbekistan intends to upgrade the republic’s main gas system in order to increase gas imports from the Russian Federation by 3.5 times from 9 million cubic metres per day to 32 mcm per day.

BOTAŞ venture

Turkish Energy Minister Alparslan Bayraktar was also at the Russian Forum and said the Turkish Petroleum Pipeline Corporation (BOTAŞ) planned to set up a joint venture company with Gazprom as part of a plan to establish a hub in Turkey for selling natural gas.

“Significant work has been done in recent years to establish a natural gas trading centre in Turkey,” said Bayraktar.

“We are now planning to establish an operating company in partnership with BOTAŞ and Gazprom in Istanbul,” he added.

“In the coming months, we would like to carry out concrete work and realise the gas hub project,” stated Bayraktar.

Gazprom, the Russian natural gas company supplying pipeline gas to Europe and China in competition to LNG, posted much higher first-half profits as volume sales of gas increased by 18 percent with the start of the partial global economic recovery.

Nord Stream AG, the natural gas pipeline company for the Russia-to-Germany Nord Steam I Pipeline, one of the main competitors to LNG, will temporarily shut down both lines of its system for routine maintenance for 10 days, starting today.

The European Commission has approved EU funding of the new floating liquefied natural gas import terminal for Greece and the Balkans being developed offshore the port of Alexandroupolis by Greek company Gastrade.

The project using a floating storage and regasification unit (FSRU) will have an overall delivery capacity of around 4 million tonnes per annum of LNG.

The subsea and onshore sections of the gas transmission pipeline will transmit LNG from the floating unit to the Greek natural gas network and onwards to third countries in the Balkans.

“The EU State aid will amount to €166.7 million ($200M) as the FLNG project contributes to the security and diversification of energy supplies in Greece and, more generally, in the region of Southeast Europe, without unduly distorting competition,” said the Commission statement.

Executive Vice-President Margrethe Vestager, in charge of EU competition policy, stated that the new LNG terminal in Alexandroupolis would improve regional gas supply and infrastructure.

“This will contribute to achievement of the EU's goals in terms of security and diversification of energy supply,” added Vestager.

“The Greek support measure limits the aid to what is necessary to make the project happen and sufficient safeguards will be in place to ensure that potential competition distortions are minimised,” declared the Commissioner

Greece had notified the Commission of its plans to support the construction of the Alexandroupolis terminal, also consisting of offshore installations such as a mooring system and risers as well as subsea and onshore gas transmission pipelines.

“Given its strategic importance for the diversification of natural gas supplies into the Southeast European region, the LNG terminal in Alexandroupolis has been included in the list of European Projects of Common Interest in the energy sector,” said the Commission.

“The terminal is expected to improve security of supply not only for Greece, but also for Bulgaria and for the wider European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria,” it added.

The project will be financed by the Greek state using European Structural and Investment Funds (ESIF), notably funds directly controlled and managed by Greece under the 2014-2020 partnership agreement for the development.

“The beneficiary of the aid is Gastrade SA, a company in which the Greek gas incumbent (DEPA) and the Bulgarian gas Transmission System Operator (Bulgartransgaz EAD) hold a participation,” it added.

Russian natural gas giant Gazprom has set up a subsidiary to develop a pipeline across the land-locked Asian country of Mongolia as Russia’s second “Power of Siberia” supply line to China in competition to LNG and with capacity of one-third more than the existing pipeline.

Gassco, the Norwegian natural gas pipeline operator and one of the main competitors to LNG in Europe, said it transported record gas volumes to Germany in 2020.
The company said pipeline gas from the Norwegian Continental Shelf (NCS) played an important role in Europe’s energy supply.