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İqtisadiyyat Nazirliyi yanında Əmlak Məsələləri Dövlət Xidməti tərəfindən ölkənin tikinti materialları sənayesi sektorunda daha bir müəssisəsinin - “Bakı Alüminium Profil” MMC-nin dövlətə məxsus paylarının satışı üzrə keçirilən investisiya müsabiqəsinin qalibi müəyyənləşib. Caspian Energy Media Əmlak məsələləri dövlət xidmətinə istinadən xəbər verir ki, müsabiqə qalibi 5 milyon 50 min manat həcmində İnvestisiya Proqramının icrasına dair öhdəlik götürüb.

Qeyd edək ki, İnvestisiya Proqramının icrası müəssisədə 100 yeni iş yerinin açılmasına imkan yaradacaq.

Daha ətraflı: https://emlak.gov.az/az/news/view/8722-%E2%80%9CBak%C4%B1-Al%C3%BCminium-Profil%E2%80%9D-MMC-%C3%B6z%C9%99ll%C9%99%C5%9Fdirilib

Kiçik və Orta Biznesin İnkişafı Agentliyinin (KOBİA) təşkilatçılığı ilə “Bakı KOB evi”ndə KOB-ların “yaşıl iqtisadiyyat”a transformasiyası və “yaşıl maliyyələşmə”yə dair seminar keçirilib. 

Caspian Energy Media xəbər verir ki, bu barədə KOBİA-ya istinadən xəbər verir.

Qeyd edək ki, seminar ölkəmizdə elan edilmiş “Yaşıl dünya naminə həmrəylik ili” və bu il Bakıda keçiriləcək COP29 tədbiri ərəfəsində KOB sektoru üzrə maraqlı tərəflərin potensialının artırılması məqsədilə təşkil olunub.

Azərbaycan və Özbəkistan arasında biznes əlaqələri müzakirə edilib.

Caspian Energy Media xəbər verir ki, bu barədə iqtisadiyyat naziri Mikayıl Cabbarov "X" sosial şəbəkəsində öz rəsmi hesabında paylaşım edib.

"Üçüncü Daşkənd Beynəlxalq İnvestisiya Forumu çərçivəsində keçirilən "Uğura doğru birgə yol: Özbəkistan və Azərbaycan" panel sessiyasında ölkələrimiz arasında strateji tərəfdaşlığın perspektivləri, ikitərəfli biznes əlaqələrinin yeni formatı və investisiyaların təşviqinin qarşılıqlı dəstəklənməsi təşəbbüsləri barədə danışdıq", - M. Cabbarov qeyd edib.

Özbəkistan Prezidenti Şavkat Mirziyoyev Azərbaycanın iqtisadiyyat naziri Mikayıl Cabbarovu və energetika naziri Pərviz Şahbazovu qəbul edib.

Caspian Energy Media İqtisadiyyat nazirliyinə istinadən xəbər verir ki, qəbulda Azərbaycan - Özbəkistan strateji tərəfdaşlıq münasibətlərinin dərinləşdirilməsi və iki ölkə prezidentlərinin siyasi iradəsi və dostluq münasibətləri əsasında daha yüksək səviyyəyə çatdırıldığı vurğulanıb.

Caspian Energy (CE):  Presidents of the two countries, Azerbaijan and Turkey, launched the strategic TANAP gas pipeline on November 30.  What is its maximal carrying capacity and which new sources will join the gas pipeline in future?

Parviz Shahbazov, Minister of Energy of Azerbaijan: The key role in implementing the idea of exporting natural gas to Europe from a new source belongs to the Trans-Anatolian Natural Gas Pipeline (TANAP). As the result of the Azerbaijan-Turkey brotherhood and friendship, the TANAP has led to the emergence of a grandiose infrastructure project such as the Southern Gas Corridor. In this sense, completion of the TANAP pipeline section linking with the EU is a landmark event. This project is an achievement of President Ilham Aliyev’s policy aimed at strengthening our country’s position on global issues such as energy security.

One of the advantages of the TANAP is that its transmission capacity and a number of project participants can be increased in future at the request of countries which wish to join the pipeline. The initial annual pipeline transmission capacity makes 16 bcm. About 4 billion cubic meters of gas has been transported via the TANAP to Turkey since July 2018 until the present day. 6 billion cubic meters of gas per year is planned to be delivered to the Turkish market via the TANAP from June 2020. The annual carrying capacity of the pipeline will reach 16 bcm starting from the end of 2021. If required, the carrying capacity of the pipeline can be increased up to 31 bcm in the next stage. There is a big potential for the expansion of TANAP. Which countries shall be sources of gas is to be decided by gas producing countries.

CE: How does the delay in TAP’s construction impact the export policy? What is the size of expenses facing producers? Are you satisfied with the present work speed?

Parviz Shahbazov: At present, the Trans Adriatic Pipeline (TAP) is 91% complete. The project is planned to be delivered on time. The obstacles which may cause the delay have been handled. It is planned to get the pipeline construction completed and transport Shah Deniz-Phase 2 gas to the European markets in the second half of 2020. TAP is a project meeting EU’s goals such as energy security, diversification of sources and environmental protection. This provides a strong political support for the project at the international level. 

CE: How big is the demand for natural gas on the global market  today and how do you assess the competitiveness of the Caspian gas compared to Russian, Norwegian, Algerian gas and other sources, as well as to LNG supplies from Qatar, the USA and Australia? 

Parviz Shahbazov: The global demand for natural gas, as for a low-carbon energy source, has been increasing in recent decades. The share of natural gas in the global energy balance now makes 23%. As the figures of 2019 are not ready yet, I will refer to the development indicators seen in 2018. When it comes to natural gas, 2018 stood out as one of the golden years. Global gas production and consumption totaled around 3.87 trillion cubic meters and 3.85 trillion cubic meters in 2018 respectively. The global demand for gas rose by 5.3%. According to the forecasts, the share of natural gas in the global energy balance will make around 26-27% in 2040.

The process of diversification of supply sources is now running on the European market. Diversification of sources and routes is the main goal of the European energy security policy. For Europe, Caspian gas is a new source, while the TAP is a new route.

Complying fully with energy diversification, Azerbaijani gas is delivered to Europe via the corridor consisting of gas pipelines, which means a stable and long-term supply. On the other hand, 25-year contracts signed with 9 companies from 8 countries guarantee the sale of 10 bcm of Shah Deniz-Phase 2 gas.

It also bears reminding that the Southern Gas Corridor is the first project providing new gas supplies to the South-East Europe. Azerbaijani gas will not only sufficiently meet demand of these countries but also contribute into creation of the supply chain for countries possessing no gas infrastructure.

CE: How does uneasy relationship of Turkey and Greece impact the project?

Parviz Shahbazov: Regional and global significance of the Southern Gas Corridor is capable of neutralizing external impact on the project. Both the Turkish and Greek sides are interested in successful implementation of this project. Agreements on sale of certain volumes of gas have been signed with each of these countries: 6 bcm – with Turkey, about 1 bcm – with Greece. 

Along with gas supply to Turkey and Greece, the Southern Gas Corridor provides conditions for turning these countries into hubs. At present, the operations over the Southern Gas Corridor sections, crossing the territories of both countries, are successfully completed.

CE: There are about 20 gas hubs in Europe and only three of them are of international importance: in Great Britain, the Netherlands and Austria. To what degree is the south gas hub  important, given the new supplies? 

Parviz Shahbazov: It will depend on the number of pipelines to be linked to the Southern Gas Corridor in future, and also on the volumes of transported gas. Construction of the Greek-Bulgarian interconnector (IGB) is currently ongoing in order to have it linked to this corridor. Besides, operations on implementation of the Ionian-Adriatic pipeline (IAP) project are ongoing as well.  Romania is interested in using the Romanian-Bulgarian gas interconnector and the transmission infrastructure of the Bulgaria-Romania-Hungary-Austria (BRUA) pipeline during the expansion phase of the Southern Gas Corridor in the direction of the Balkans and Central Europe.

Hungary is also taking interest in acquiring natural gas via the Southern Gas Corridor. The Southern Gas Corridor has been designed in a way to permanently expand and develop. At the next stage of development the Southern Gas Corridor can extend towards the Central and Western Europe, and turn into a hub.                                      

CE: What stage has the development of the Trans Caspian gas pipeline reached? To what extent is this project urgent for Azerbaijan today?

Parviz Shahbazov: According to the data of BP, Turkmenistan’s gas reserves make 19.5 trillion cubic meters. A total of 61.5 billion cubic meters of gas was produced in 2018. Gas consumption totaled 28.4 bcm.

Diversification of export routes and gaining revenues from natural gas are also important for Turkmenistan. The Trans-Caspian gas pipeline project provides an access for Turkmenistan’s gas into the European market. Turkmenistan and the European Union have the final say in this process. Turkmenistan is interested in considering export routes in the direction of Europe and in delivering energy resources to foreign markets. Discussions with the European Union and Turkey are held on different levels. Turkmenistan has been represented at the meetings of the Southern Gas Corridor Advisory Council for two years in a row. All of it is a positive aspect in development of energy cooperation with the participation of Turkmenistan.

Azerbaijan is holding energy cooperation with Turkmenistan in bilateral and trilateral formats. An example of this is the April meeting held in Ankara last year with the participation of Energy Ministers of Azerbaijan, Turkey and Turkmenistan.

Azerbaijan has an experience bringing benefits to all parties in transportation of Central Asian energy resources, including delivery of Turkmen oil to the world markets. Azerbaijan provides transit opportunities for energy resources of Turkmenistan. Central Asian countries can enjoy all logistics services in future as well.

CE:  What stage has been reached in developing a long-term state strategy on renewable sources of energy? What will be a percentage ratio in the energy balance in coming 10 years?

Parviz Shahbazov: Mapping out of the “Long-term strategy on development of the energy sector of the Azerbaijan Republic” is envisaged in accordance with the Azerbaijan Republic President’s order #1209 “On acceleration of energy sector reforms” dated 29 May, 2019.  The strategy will reflect strategic measures associated with the development of renewable sources of energy. International consulting companies are now attracted, and a relevant work is underway due to this measure.

The goal in the next 10 years is to increase the share of using renewables up to 30% in the total installed capacity. The work on development of the renewable energy sector is currently underway in compliance with the order of the head of the state. Operations on implementation of pilot projects concerning wind and solar sources of energy with the capacity of 440 MW are currently carried out with the assistance of foreign energy companies. After the Law “On use of renewable sources of energy in electricity production” has been passed, it is planned to create additional generation capacities at the expense of private investments attracted via auctions. For this purpose, the project on preparation of auctions is being implemented with the support of the European Bank for Reconstruction and Development, including the work on development of the legal framework regulating tendering processes.

CE: Which types of energy resources are the most competitive in the climate conditions of Azerbaijan?

Parviz Shahbazov: High level use of hydropower resources is practiced in Azerbaijan. Thus, 1,782.2 million kWh was produced out of a 1,134MW capacity in 2018. Nowadays, using of wind and solar energy is of particular significance in the general energy strategy of the Republic. Azerbaijan is attaching big priority to increase of using solar and wind energy. Competitiveness of renewable energy sources in relation to the conventional energy resources comes mainly out of development of renewable energy potential and is directly associated with the technology development in the country. Our observations show that the attention given by the head of the state to the renewables sector, ongoing reforms in the country and development of technologies in the energy sector along with existing electricity wholesale tariffs make it possible to invest. The potential of the renewables sector in our country has reached a sufficiently good level.

 

Thank you for the interview

 

Caspian Energy (CE): Which changes were made in the work of the customs system last year?

Colonel-General Safar Mehdiyev, Chairman of the State Customs Committee: Important measures were taken in 2019 to increase transparency and accountability level, promote legal trade and improve business environment.

Implementation of the Green Corridor gating system was commenced in accordance with the relevant order signed by President Ilham Aliyev late in 2018.

This is a project that changed the customs control  philosophy for the country’s business sector and brought an understanding of the culture of voluntary adherence to our thinking. With this, the customs service has shown that if a business entity is our reliable partner, we, in turn, will create conditions for more intensive and higher cargo traffic, removing all barriers of control.

According to preliminary estimates, millions of funds were saved as a result of sending vehicles of the Green Corridor participants, who became reliable partners of the customs in 2019, directly to cargo warehouses rather than terminals.Thus, a contact with a customs officer was excluded and the right to unload goods was passed to the Green Corridor participants.

The introduction of the Green Corridor in the exports sector was an important step towards facilitating trade in the country’s non-oil sector. In 2019, 62.5% of agricultural and food products exported from the country were shipped by the Green Corridor system, and the time spent on customs clearance often made several minutes, given the fact that they were perishable products.

In this case, a declaration was filled in at an entrepreneur’s office or elsewhere, and submitted to the customs body in electronic format, whereupon customs clearance was completed if everything complied with the risk management system.

According to the rules of using the Green Corridor gating system by foreign trade participants, approved by the Azerbaijan Republic President’s order #427 dated 21 December 2018, 599 foreign trade participants have applied to the Customs Committee. Of them, 530 foreign trade participants have got a permanent access to the Green Corridor system.

CE: Which companies can use the Green Corridor gating system?

Safar Mehdiyev: In accordance with the 2nd part of the Rules approved by the Azerbaijan Republic President’s decree No. 427 dated December 21, 2018, the Green Corridor system can be constantly used by a person who meets all the requirements listed below and belongs to a low risk group for carrying out import and export operations:

For import operations:

- shall have an experience in import operations performed over the last one year;

- shall be able to use electronic services provided by customs authorities, or have an agreement with an authorized person for their provision;

- shall carry out transportation by using vehicles that comply with international transport standards;

- shall use warehouses for storing goods, which meet the requirements set by the Cabinet of Ministers of the Republic of Azerbaijan;

- shall have no criminal record for crimes related to smuggling or evasion of customs payments.

For export operations:

- shall have an experience in export operations performed over the last 1 year;

- shall be able to use electronic services provided by customs authorities, or have an agreement with an authorized person for their provision;

- shall carry out transportation by using vehicles that comply with international transport standards;

- shall have no criminal record for crimes related to smuggling or evasion of customs payments.

The right for permanent use of the Green corridor gating system is terminated in accordance with section 5 of the relevant Rules in the following cases:

-  when a Green corridor system user files an application;

- if documents submitted for permanent use of the Green corridor system are found to be inaccurate;

- in the case of termination of a legal entity or when the court finds an individual as incapacitated or deceased;

- if a regular user of the Green corridor system did not perform import-export operations for 12 months;

- in case of committing a crime related to smuggling or evasion of customs payments;

- if causes for stopping a permanent use of the Green corridor system are not eliminated within the period specified in paragraph 5.2 of these Rules.

CE: Could you please tell about the performance results of the customs bodies for the period of 2019? What are the performance indicators?

Safar Mehdiyev: As in previous years, the trend of increasing the budget revenues continued in 2019 as well.

During 2019, the State Customs Committee transferred 4 billion 408 million 620 thousand manats to the state budget with a budget commitment of 3 billion 702 million manats, which is 706 million 620 thousand manats above the forecast. So, the forecast objective was fulfilled by 119.1%. Thus, the State Customs Committee has shown record fiscal indicators since its creation, and the sum it transferred into the state budget over the past two years was 2 billion manats higher than the budget forecast.

Imports totaled $13 billion 668 million in 2019, which means an increase by $2 billion 202 million or 19.2 percent vs. the same period of 2018. The volume of export operations amounted to 19 billion 635 million US dollars and increased by 146 million 620 thousand US dollars or 0.8 percent compared to 2018.

In the structure of imported goods, the base for value added tax was 63.89% the share of privileges was 36.11%, the base for taxation on customs payments was 34.97%, and the share of privileges for customs duties was 65.03%.

Further acceleration of movement of goods and vehicles across the customs border, simplification of operational procedures and operations, minimization of additional time losses at customs control, as well as reduction of costs for foreign trade participants in import and export of goods were achieved thanks to the «one inspector – one vehicle» principle of the «single window», which was applied to the registration of goods and vehicles at customs and border checkpoints where cargo vehicles were moving in different directions.

In addition, the green corridor service windows were opened at customs and border checkpoints in accordance with the «single window» principle in order to prioritize the registration of goods belonging to foreign trade participants who are granted permanent access to the Green corridor system.

In addition, the number of drugs, psychotropic substances or their precursors detected and seized over the past two years as a result of increased measures to combat customs offences has reached record 3 tons 168 kg.

For comparison, the total number of drugs detected over the previous 10 years totaled 3 tons 59 kilograms. At the same time, as a result of operational search measures, an illegal import of medicines into the country worth more than 3 million manats was prevented.

The State Customs Committee, which held one of the leading positions in the field of electronic services in the country, provided more than 4,500,000 different services to foreign trade participants in 2019, which is 55% more than in 2018.

The most important innovation in the international cooperation through 2019 was election of Azerbaijan’s customs for a two year period (2019-2021) with the support of all European countries as the Vice-Chair of the WCO Customs Cooperation Council, and the Chair for the European Region during  the WCO’s Heads of Customs Conference.

CE: How is the radiation background of goods, imported to Azerbaijan, being controlled? How is the transit of chemical or highly dangerous goods carried out?

Safar Mehdiyev: Primary radiation control is carried out by the State Border Service using stationary radiation monitoring systems to detect radioactive materials spread on vehicles entering the state border, and at entry points.

Customs officers use radiometric spectrometers and gamma spectrometers to determine equivalent doses and types of isotopes of radioactive materials distributed in the zone of additional and detailed radiation control at border points in accordance with the radiation safety category. The Ministry of Health and the Ministry of Ecology and Natural Resources are taking appropriate measures. 

CE: How will the Brexit affect the transit of the European goods across Azerbaijan? Will there be changes in the rules in regard to the British producers?

Safar Mehdiyev: First of all, it should be noted that the transit of goods is carried out within the framework of international transit systems regulated by customs transit procedures and interstate agreements in accordance with the requirements of the national legislation.

The Azerbaijan Republic’s customs code based on the EU Customs code, of which the United Kingdom is also a member within the national transit system, forms the basis of the national transit in the national legislation which contains rules regulating the Union’s transit procedure.

Meanwhile, the Republic of Azerbaijan is currently a party to the Customs Convention on the international transport of goods (TIR Convention, 1975), which has 76 members, and the transit is carried out in accordance with the requirements of the Convention within the framework of the above-mentioned international transit system. 

As is known, an adaptation of the national legislation was set to accelerate an introduction of the European new computerized transit system (NCTS) and measures were taken to establish a system of transit guarantee in accordance with the clause 7.2.1.1 of the plan of actions meant for implementing the Azerbaijan Republic President’s order dated July 13, 2016 No. 2199 «On additional measures to be taken to improve the business environment in the Azerbaijan Republic and ensure further advancement of the country in the international ratings», approved by the No. 2947 decree of the President of Azerbaijan Republic on June 2, 2017.

In order to join the 1987 Convention on the common transit procedure which covers 35 countries that are members of the European Union, as well as Switzerland, Norway, Iceland and Liechtenstein, Turkey, Macedonia and Serbia, the State Customs Committee held relevant activities and received an observer status in the working structures of the Convention in 2017. While joining the Convention, significant steps will be taken to facilitate transit transport between the European countries (including the UK) and Azerbaijan.

One of the key issues discussed in the working bodies of the Convention after the start of the Brexit process was determining the status of the common transit procedure of the United Kingdom of Great Britain and Northern Ireland. Thus, the UK automatically joined the transit system as a member state of the Union. A separate accession process is required for the country’s participation in the transit system after the Brexit process ends.

On the 28th of May 2018 the United Kingdom announced its intention to join the Convention as a separate country. In accordance with the decision made at the meeting of the Joint Committee of the Convention in Skopje (Northern Macedonia) on 4 December 2019, the mentioned country will be invited to join the common transit system as a third country. There are anyway temporary measures foreseen, making it possible to carry out transit transport without delays during the accession process.

Thus, regardless of the results of the Brexit process, as well as the completion of measures for the accession of the Republic of Azerbaijan, transit operations between the UK and Azerbaijan will start running under the new unified system. This will allow, first of all, delivering goods produced in Azerbaijan to the British market and the British products to the Azerbaijani market, proceeding from minimum costs and minimum documentation. The «New agreement between the Republic of Azerbaijan and the European Union» project is currently under development.

The «Trade» section of this project will also be the subject of comprehensive regulation of customs and trade issues in general. If the agreement is signed, the bilateral agreements on the customs issues, which will be included into the draft text, will be applied to the United Kingdom of Great Britain and Northern Ireland as a member of the European Union.

Given that the UK is the main trading partner for the Republic of Azerbaijan both as a member of the European Union and as a separate Brexit process, the trade between the two countries, including imports, exports and transit of goods, will be regulated by bilateral documents.

In addition, on 7 July 1997 the government of the Republic of Azerbaijan and the government of the United Kingdom of Great Britain and Northern Ireland signed a memorandum of understanding on mutual administrative assistance to customs authorities.

Meanwhile, on February 19, 2019, the State Customs Committee of the Republic of Azerbaijan and the State Secretariat of the Ministry of Internal Affairs, acting on behalf of the British border troops, signed a joint statement on continuation of cooperation in the customs field.

CE: With which countries do you plan to cooperate this year?

Safar Mehdiyev: The State Customs Committee is constantly developing an international cooperation, and lines of cooperation are being defined and developed. To date, about 120 international documents were signed with 53 countries and 9 international organizations to create a legal framework.

An international anti-drug conference, organized jointly by the State Commission on Fighting Drug Addiction and Illicit Drug Trafficking and the U.S. Department of Justice, was held in April 2019 with the participation of more than 500 representatives from 115 countries.

In June, the World Customs Organization held a conference and exhibition of information technologies and technological innovations with the support of the Korean Customs Service at the Heydar Aliyev Center. It was one of the most important events of the World Customs Organization.

We will continue our cooperation with neighboring countries, and issues arising in the field of customs will be solved.

Cooperation with other countries in the field of customs will also be continued within the framework of relevant international organizations.

CE: What are the privileges for products exported under the “Made in Azerbaijan” brand? Do they enjoy a special status when crossing the border?

Safar Mehdiyev: Determined were the privileges associated with the export of goods (including those produced in the Republic of Azerbaijan) for foreign trade participants who received the right to use, and the requirements for acquiring the right to use the Green Corridor.

The mentioned privileges envisage submitting a customs declaration, including information about goods and vehicles, to customs authorities in electronic format without entering a customs office, also sending foreign trade participants directly from warehouses to customs checkpoints, as well as crossing a customs border with minimal physical inspection and first registration. This, in turn, is of great importance for entrepreneurs engaged in export of local products, and in addition to stimulation of export of such goods it also increases competitiveness of Azerbaijani products in foreign markets.

CE: Which countries use preferential conditions when trading with Azerbaijan? What are the preferential regimes in the country’s customs system today? Are there any restrictions or barriers for certain types of products?

Safar Mehdiyev: To date, Russia, Ukraine, Belarus, Georgia, Moldova, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan have signed free trade agreements. According to these agreements, the import customs duty is not applied to goods imported directly into the customs territory of the Republic of Azerbaijan, and a certificate of origin ST-1 is issued in case if a contract with a resident of this country exists.

Preferences cover all product categories, and there are no barriers or restrictions in this area.

CE: What do you think about shifting to a fully automated mode of operation without taking a human factor into account? It is possible technically?

Safar Mehdiyev: Currently, our IT resources are aimed at minimizing contacts between officials and foreign trade participants through the integrated system of customs management over customs services, introduced in 2009.

In fact, the use of the «Green corridor» and the simplified customs clearance system implies further improvement of the e-declaration and the shift to automated passage systems.

This includes full automation of complex operations performed at all stages of customs clearance, using the single automated management system (SAMS). Many of the services provided by customs authorities have already been introduced electronically, and new electronic services are introduced every year.

As I have already said, the use of e-services increased by 61% last year vs. 2018. This shows how well the single automated management system (SAMS) can work. At the same time, the process of transferring electronic services from customs services into the Smart Customs mobile app has already begun. So, the electronic services we provide will also be available via mobile phones.

However, it is impossible to refuse the engagement of human resources at all stages of control, given the fact that customs control is complex and multi-faceted. But information technologies are developing at a rapid pace, which means that in the future there will be «artificial intelligence», «computer-based learning», robots, and so on. The use of such technologies perhaps will make it possible to switch to a fully automated mode of operation without taking the human factor into account.

 

Thank you for the interview

 

 

 

Caspian Energy (CE): Mr. Freiberg, the number of Norwegian companies abandoning an oil-gas business in favour of industrial production and innovations is getting more and more. In particular, Norsk Hydro, Equinor are cutting oil production. Does it mean that the oil-gas sector is not a priority for the Norwegian economy anymore? What’s in store for Europe in this case?

Kjell-Børge Freiberg, Member of the Norwegian Parliament, former Minister of Petroleum and Energy of Norway: The oil and gas sector is by far Norway’s largest measured in terms of value added, government revenues, investments and export value. The sector therefore plays a vital role in the Norwegian economy and the financing of the Norwegian welfare state. The activity level on the Norwegian continental shelf is expected to increase in the years to come. The operators and the service and supply industry have managed to reduce costs and increase efficiency over the last few years, resulting in profitable projects even at low oil prices. Norway continues to lead an active exploration policy. We have made significant acreage available for exploration and we are encouraged by the interest shown by the industry to continue to explore on the Norwegian shelf. We are seeing exciting new oil and gas projects on the Norwegian Continental Shelf. For example, in October of 2019 the oil field Johan Sverdrup was brought on stream. It is the third largest oil field ever on the Norwegian Continental Shelf.

 

CE: Norway is not an EU member but is a main supplier of energy resources to the markets of Great Britain, the Netherlands and the Baltic states. How will Brexit impact the supplies? Will the prices for energy resources increase in the EU and Great Britain, thereby lowering industrial competitiveness of these countries?

Kjell-Børge Freiberg: The UK is one of Norway’s largest trading partners. The UK is our main export market and oil and gas are of course the main exports. Norway will continue to be a close trading partner with the UK and remain a major supplier of oil and gas to the UK, also in the future. Norway attaches great importance to ensuring long-term secure supplies of oil and natural gas to our friends in Europe and will be an important source of oil and gas for Europe for the long term. There are substantial oil and gas resources remaining on the Norwegian Continental Shelf.

 

CE: Why has the Government given up the national plan on wind energy development in 13 regions? How do windmills affect onshore and offshore fauna?

Kjell-Børge Freiberg:  In Norway, there is a large public debate on wind power onshore. The arguments against wind power are mostly due to the consequences for the environment and landscape. Several wind power projects are under construction. The Ministry proposed a tool to control where to build new wind power projects onshore – a national framework for wind power. After a public consultation, the government decided not to designate specific areas as suitable for wind power production.  The government is now in process to further develop the licensing system i.a. to improve local acceptance and to deal with environmental issues. As part of this process, the knowledge base has been considerably improved. When establishing wind power plants, birds are in particularly prone to collision and disturbance. Other challenges onshore are related to landscape, outdoor life, noise, reindeer husbandry and biodiversity more generally.

 

CE: Does Norway benefit from the European Commission’s control (regulation) over the domestic market or it is a free market which is seen as a priority? To what extent do LNG supplies from the USA and Canada sound promising? 

Kjell-Børge Freiberg: Norway is not dependent on gas imports. We use very little gas domestically and almost all of Norway’s gas output is exported. This is why we are the third largest exporter of gas in the world. Most of Norway’s gas is exported to Europe via pipeline, but we also have one LNG-plant in the high north which can supply a global market. Norway is Europe’s second largest supplier of gas, and last year our gas covered about one quarter of the gas demand in the EU.

Norway supports competitive energy markets with efficient pricing of greenhouse gas emissions.

CE: Do you consider the Southern Gas Corridor as your competitor, such as Gazprom for instance?  What is the way of competition which shall be in the European market? Do you consider the EU’s gas market monopolization (by any side) as a problem? How is this problem addressed in Norway?

Kjell-Børge Freiberg: Establishing an efficient gas market supported with enough infrastructure is, in my view, the best way to secure security of supplies. Europe has done much to create such a market over the last decades. The European gas network has been strengthened with the expansion of gas infrastructure such as new storage capacities, new pipeline interconnections and new LNG import facilities. The EU has also added new gas market regulations aimed at greater monitoring, coordination and cooperation and this has improved security of supply, preparedness and transparency in the European gas market. European gas consumers have never had more sources of gas supply than they have now. Norwegian gas has been and will for a long time be one of the most important of these.

 

CE: How will the climate change affect the energy security of Norway and energy security of its partners?

Kjell-Børge Freiberg: The Norwegian electricity production is based on hydropower which can be stored in reservoirs, and is almost 100 percent renewable. Thus, we do not currently face the challenges of intermittency in our electricity sector. In many years, Norway is a net exporter of renewable electricity. Electricity is widely used in many sectors – such as transport, industry and households. Natural gas has a key role to play in both energy security and the energy transition. Stable access to reliable and affordable energy is key to both social and economic development. People and businesses depend on gas every day. Gas is inexpensive, available and enables emission cuts from energy use, without compromising security of supply.

Gas is therefore an important part of the world’s and Europe’s energy mix today – and going forward. Gas has a lot to offer in the transition to a low carbon energy system. By replacing coal, natural gas can significantly reduce emissions with near immediate effect. By being a flexible partner for intermittent renewable energy, natural gas can enable the growth in wind and solar power. In the longer term, natural gas can be decarbonised, for example by conversion to hydrogen with carbon capture and storage.

 

CE: Which incentives are introduced in Norway to develop energy efficient technologies, renewable energy sector and energy saving?

Kjell-Børge Freiberg: The Norwegian government is committed to support research and development in the energy industries and we do this in different ways. We have specific research programmes covering all stages of innovation, from basic research to projects that are close to market introduction. We are also funding research centres that conduct long-term research of high international calibre in order to solve specific challenges in the energy sector. Additionally, we have a tax incentive scheme designed to stimulate research and development as well as a venture fund called “Nysnø” that is set up to invest in promising companies that provide smart and potentially profitable solutions to the challenges of climate change.

 

Thank you for the interview

 

 

 

Caspian Energy (CE): Mr. Hatzidakis, what role will the Southern Gas Corridor play in the gas balance of the country?

Kostis Hatzidakis, Minister of Environment and Energy of the Hellenic Republic: Greece was and remains instrumental in the implementation of the EU’s Southern Gas Corridor. It is the most important EU transit country for the transportation of Azeri gas to both Italy and Bulgaria, and an important consumer of Azeri gas in its own right.

CE: How did the delay of SCP’s (South Caucasus Pipeline) launch impact on the Greek consumers and on the EU’s gas market in general?

Kostis Hatzidakis: It did not have a significant impact since DEPA’s (Greek Public Gas Corporation) existing import contract with BOTAS remains active, so we did not have any supply shortages, if this is what you mean.

CE: What will be the gas policy of Greece for coming years?

Kostis Hatzidakis: Our policy is based on the premise of supply diversification of both import sources and import routes. At the same time the full operation of a third tank in our regasification terminal in Revythousa as well as the prospective construction of an Underground Gas Storage facility in the old South Kavala Gas field will markedly increase our strategic storage options and capabilities. We are also planning to provide additional incentives for the expansion of gas distribution networks throughout the country and the privatization of DEPA’s commercial and trading operations as our domestic demand is set to increase in the decade to come.

CE: Do you plan to shift economy to renewable sources of energy? What policy will Greece implement in terms of use of coal at power plants? Do you support plans on shifting these power plants to natural gas?

Kostis Hatzidakis: In our 10-year Energy and Climate Plan we are pursuing a policy of rapid decommissioning of our existing coal-fired electricity plants which we expect to completely phase out by 2028. We are implementing an ambitious policy of expanding the use of RES in our electricity sector in order to get more than 60% of our electricity generation from renewable energy resources by 2030. Our plan foresees that a significant part of our transition to a lower carbon electricity mix will be covered by additional gas demand that would expand our current consumption rate by 30%-40%.

CE: What are the plans in regard to the East Med gas pipeline? Isn’t it a very challenging project?

Kostis Hatzidakis: We are fully aware of the project’s many challenges, but we are optimistic that the East Med Gas Pipeline will emerge as a strategic game changer for the region and the EU’s energy security, as it offers to the EU simultaneous diversification of gas import sources and routes. The Intergovernmental Agreement that we signed in early January will be ratified from the Greek Parliament in the coming months and then we will continue with the implementation of the main feasibility study. East Med is certainly a very ambitious project, but the commitment of the EU, Greece, Cyprus and Israel to promote our cooperation is strong and stable. The signature of the Agreement was not just a political move. It will be followed by business initiatives in order for the pipeline to proceed by committing new gas supplies to be transported via the pipeline and by mobilizing the necessary resources to finance and carry out its Front End Engineering and Design study that is 50% financed by the European Commission.

CE: Do you plan to import liquefied gas from the USA?

Kostis Hatzidakis: There have been occasional imports of American LNG by DEPA last year but let me clarify that the Ministry does not “plan”, the private gas companies decide whether or not to import US, Qatari or Algerian LNG on the commercial merits of each individual transaction and the prices decided by international markets. From a geopolitical point of view we would more than welcome US LNG supplies because they offer a flexible and reliable tool to diversify our gas import portfolio.

 

Thank you for the interview

 

 

 

Caspian Energy (CE): Madame Minister, the parliament approved the new staff of the European Commission.  Which differences between the former and the new staff have you seen and what hopes do you place on the work of the new staff of the Commission in coming 5 years?

Marie Christine Marghem, Minister of Energy, Environment and Sustainable Development of Belgium: The biggest difference we’re seeing in comparison with the former European staff is the will to implement the Green Deal and to achieve the Paris agreement. Therefore the new commissioner Kadri Simson has a very important role to play and fortunately, she’s highly aware of the matter. Minister Marghem has a very good relationship with her. We also consider that the new staff wants to go further in the way of EU energy independence. We are also pride as the Belgians for the nomination of commissioner Didier Reynders who has a very long experience too.

CE: Which economic sectors of the EU and Belgium are in need of investments and subsidies today?

Marie Christine Marghem: The two topics essentials on the European scale are digitalization and innovation. First of all, innovation remains a key factor for the future. It is the same in Belgium, so we have to improve some infrastructure: gas or electricity network for example. It’s the reason why I approved Elia’s (electricity network administrator) development plan until 2030. We will reinforce some electric lines to support the renewable energy flow.

CE: How do you assess the energy security situation? Don’t you think it is in danger due to lower gas prices, which does not stimulate gas supply from new sources, while the European sources are getting exhausted?

Marie Christine Marghem:  The most important is to diversify our sources of supply to avoid an excessive dependence on only one type of energy. We consider gas as a transitional energy source. To succeed the nuclear phase out the Parliament approved in April of 2019 the “CRM (capacity remuneration mechanism) law” which will allow the construction of new gas production units in Belgium. On this matter we can see how much innovation is important to reduce the carbon emissions of gas units.

CE: Do you consider it possible to stop an operation of two nuclear reactors in Belgium after 2025? 

Marie Christine Marghem:  The 2003’s law provides the nuclear phase out in 2025. This nuclear phase out was one of the main concerns of the minister’s cabinet: we developed an Energy Pact with the Regional Ministers until 2030-2050. Furthermore, we will notify the Belgian National Energy and Climate Plan to the European Commission before the end of this year. If the next government wants to change this law it will have to find a new majority.

CE: Does Belgium plan to fully abandon internal combustion engines in favor of electric motors?

Marie Christine Marghem:  Belgian long term strategy for 2050 is not achieved yet. We are completing its development. We are working on the Belgian electricity network to enable and increase more electric vehicles. We also have other possibilities such as liquid gas, hydrogen and more.

CE: Isn’t the production of lithium-ion batteries more harmful than petrol production? What solution would you suggest?

Marie Christine Marghem:  The two aspects are completely different. You have to consider the whole production process of lithium-ion batteries and evaluate the impact on the environment. We are working on sustainable solutions, recycling included. For instance we have a “Transition Funds”. These Funds are aimed to promote new ways of energy production. It also financially counterbalances the prolongation of two nuclear power stations (Doel 1 and 2) that is 200 million Euros for 10 years.

Petrol sources are limited and we have to find new sources of energy to succeed energy transition.

CE: Which sources of energy are the most efficient in the EU and Belgium?

Marie Christine Marghem: Offshore energy is a real success for Belgium. Offshore wind turbines are more efficient than onshore wind turbines because of the wind’s strength at sea. We have now an installed capacity of 1.5 GW and we will reach the 4 GW in 2030. We have developed an expertise on this field and we now export our technology abroad. On the European ranking, we are on the third place and on the fifth place in the world.

 

Thank you for the interview

 

 

Tuesday, 02 June 2020 11:15

Зачем рынку ОПЕК?

Не секрет, что коронавирусная инфекция COVID19, получившая довольно широкое освещение в мировых СМИ, кроме рекордного падения цен на энергоносители, также послужила своеобразным катализатором осознания «энергетической системы координат», в которой мы все находимся и которой так не хватало для понимания необходимости реформирования того, что мы привыкли называть энергетической безопасностью.

Нефть из самого ликвидного в XX веке товара все более усиленными темпами превращается в товар – изгой,  экологически чистые энергоресурсы все более наступают ей на пятки. При этом не важно, что ветровая энергетика не стабильна и не менее убийственна для флоры и фауны, чем нефть, а солнечная энергетика помимо капризов погоды также занимает огромные территории и не имеет технологий хранения и транспортировки на дальние дистанции. Кроме того, на производство литиевых батарей для электромобилей требуется энергоемкость на 30% превышающая производство традиционного топлива, при этом его «углеродный след» оказался на 20-60% выше, чем при производстве двигателей внутреннего сгорания.

В погоне за сохранением «привычного распорядка вещей», мы продолжаем терять 65% популяции пчел, которые ответственны за жизнь 80% растительности на Земле, никто больше не хочет дышать продуктами жизнедеятельности организмов, почивших в мир иной 5 миллионов лет назад, наши океаны задыхаются от мусора и через каких то 30 лет на планете просто не останется чистой питьевой воды, а также ее флоры и фауны.  Что мы имеем, это локальные рынки возобновляемых энергоресурсов, которые при всей своей эффективности все же  носят сезонный характер.  Это одна из причин, почему нефть держится за счет искусственного регулирования, хотя в последнее время все больше уступает эту ведущую роль природному газу и его жидким фракциям. Газ сегодня воспринимается инвесторами, аналитиками и маркетологами как естественный переходный энергоноситель, призванный ликвидировать зависимость от угля и нефти.

Роль природного газа в Евросоюзе должна серьезно сократиться к середине века, сказала глава генерального директората Еврокомиссии (ЕК) по энергетике Дитте Юуул Йоргенсен в ходе онлайн-конференции Атлантического совета. Однако в наборе используемых Евросоюзом энергоресурсов (так называемом энергомиксе),  природный газ играет «очень-очень большую роль», на него приходится более трети энергопотребления, и в обозримом будущем газ останется важным источником энергии для Евросоюза.

«Я думаю, важно посмотреть на роль газа в нашем энергомиксе в долгосрочной перспективе. Ясно, что при приближении к 2050 году, к климатической нейтральности нашей экономики роль газа будет намного меньше, чем сейчас. Но это - через 30 лет», - сказала она.

Еврокомиссия хотела бы, чтобы использование природного газа в Евросоюзе было заменено более «чистыми» источниками энергии, отметил замглавы этого директората Клаус-Дитер Борхардт ранее на той же конференции. Однако сделать это можно, когда и если у ЕС будут альтернативные виды энергии в объёмах, в которых нуждается его энергосистема, подчеркнул он.

Саммит глав государств Евросоюза в декабре договорился о переходе к так называемой климатической нейтральности к 2050 году. В начале марта Еврокомиссия предложила документ, который должен обязать ЕС стать климатически нейтральным к середине века. Речь идет о законопроекте, который устанавливает обязательную для исполнения цель – итоговый объем выбросов парниковых газов в атмосферу в союзе должен стать нулевым к 2050 году.

Между тем европейский рынок становится все более глобальным, в марте этого года украинская Нафтогаз подписала с американской  Louisiana Natural Gas Exports договор  о закупках около 5,5 миллиарда кубометров американского сырья в течение двадцати лет. В пакете идут еще два контракта: на хранение заокеанского топлива в газовых хранилищах Украины и на строительство и эксплуатацию газотранспортной инфраструктуры между Польшей и Украиной.

LNG стирает границы, снижая зависимость газа от нефтяных котировок, чем больше объемы торговли спотовым газом,  тем больше вероятность что в ближайшее время газ вырвется в свободное ценообразование, тогда партии LNG как на европейских, так и азиатских биржах, столкнутся в конкурентной борьбе с трубопроводным газом, стимулируя инвестиции в газовый upstream и стабильный рост газового баланса, что и требуется стратегическому инвестору.

У газа есть свой плюс – у него  нет регулятора наподобие ОПЕК, что не помешало ему естественным путем контролировать поставки соответственно спросу во время кризиса.

ОАПЕК

Вся история нефти XX века это фактически ее использование в качестве экономического «оружия», что напоминает о  нефтяных эмбарго, например,  введенное в октябре 1973 года. США за всю свою историю установила количество эмбарго на нефть, больше чем любое другое государство, включая введение нефтяного эмбарго в течение двух десятилетий на Японию до начала II Мировой Войны, на Советский Союз в 1960 году, на Северную Африку, Бирму, Сербию, Гаити, Ливию, Ирак, Иран и Судан.

Некоторые Арабские государства производители нефти вводили эмбарго в 1956, 1967 и 1973 годы  на государства, являющимися сторонниками США и западных стран.  Они тем самым, в  1967 и 1973 гг. хотели заставить страны, поддерживающие Израиль поменять свою политику, оказать на него давление во время войны  1967 года.

Самым важным итогом эмбарго, введенного в 1967 году, стало возникновение Организации Арабских стран-экспортеров нефти (ОАПЕК) впоследствии  соответственно - Организацией стран-экспортеров нефти (ОПЕК).

Когда в 1974 году цены на сырую нефть резко поднялись, некоторые члены ОАПЕК,  посчитали их слишком высокими. Саудовская Аравия начала беспокоиться, что высокие цены на нефть могут разрушить экономику западной Европы, тем самым усилиться коммунистический блок, альтернативные технологии, что может в будущем привести к отсутствию необходимости в потребности нефти и тем самым ОАПЕК как организация может прекратить свое существование.

В январе 1974 года министры нефти дали добро на увеличение добычи на 10% вместо запланированного увеличения на 5%. Введенное эмбарго по мнению официальных лиц США закончилось 18 марта 1974, а в отношении Нидерландов - 11 июля 1974 года.

ОПЕК +++..

Сегодня ОПЕК потеряла прежнюю политическую роль, количество ее участников расширилось  и ее основная функция – поддержание значимости роли нефти как основного мирового энергоресурса во время последнего кризиса, оказалась провальной. ОПЕК   влияет на рынки все меньше. Поэтому природный газ, который является наиболее экологически чистым энергоносителем, все больше нуждается в отвязке от нефтяных котировок, а ОПЕК в возможном прекращении деятельности. 

ОПЕК ухудшило прогноз снижения мирового спроса на нефть из-за пандемии коронавируса: во втором квартале 2020 года ожидается падение спроса до уровня 81,3 млн баррелей в сутки. А 12 апреля 2020 года Саудовская Аравия, Россия и другие нефтедобывающие страны, входящие в ОПЕК+ договорились сократить добычу нефти на 9,7 млн баррелей в сутки в мае и июне или на 23% относительно исходного уровня, затем в июле - декабре 2020 года это ограничение будет смягчено до 7,7 млн баррелей в сутки, или 18%, а в период с января 2021 до апреля 2022 года уровень ограничений составит 5,8 млн баррелей в сутки, или 14% от базового уровня.

Предыдущая сделка действовала три года — с начала 2017-го до 31 марта 2020 года. В 2009 году ОПЕК сокращал добычу нефти для целей восстановления роста цен только на 3 млн б/с, а в 1999 году — на 4 млн б/с.

Современный ОПЕК это громоздкий формат, состоящий из 23 стран, получил новое название «ОПЕК+++». И это беспрецедентное сокращение в истории ОПЕК и всего нефтяного рынка не помогло, цены продолжили падение. На настроение трейдеров больше влияли данные о хранилищах нефти в США или ситуация с очередным коронавирусным локдауном, чем сокращения в рамках ОПЕК+++. На фоне данных о нарушениях договоренностей со стороны некоторых членов организации, а также огромных убытков нефтегазовых majors, актуальность ОПЕК c точки зрения свободного рынка и дальнейшей инвестиционной привлекательности нефтегазовой отрасли, требующей стабильности, а не искусственного регулирования, все больше ставится под большой вопрос.

Как известно, уже 22 апреля стоимость эталонной марки в моменте опускалась ниже 16-ти долларовой отметки. В оставшиеся дни апреля европейская нефть торговалась в коридоре 20-24 доллара за баррель. А в последний день месяца котировки повысились до 26 долларов и выше, что стало реакцией на данные Минэнерго США по запасам нефти и нефтепродуктов, а также, возможно, ожиданий участников рынка стимулирующих мер от ФРС США.

Еще более драматично развивались события на американском рынке, 20 апреля на торгах Нью-Йоркской товарной биржи цена майских фьючерсов на североамериканскую нефть WTI сначала упала до нуля за баррель, а затем ее котировки ушли в минус – впервые в истории! Цена нефти в моменте обваливалась до минус 40 долларов за баррель, продавцы контрактов доплачивали покупателям. Главной причиной, как отмечалось в СМИ, стало падение спроса на нефть из-за антикоронавирусного простоя мировой экономики и существенного сокращения резервных мощностей для хранения нефти.

Нуждается ли сегодня мировая экономика в искусственном поддержании жизнеобеспечения нефтяных котировок, развивая «голландский синдром» мировой экономики, что может привести к очередным кризисам,  или ОПЕК как  «лошадь сдохла и с нее пора слезать», как метко выразился один из российских олигархов.

NEWS