Presidents of Russia and Turkey Vladimir Putin and Recep Tayyip Erdogan following the results of negotiations in Sochi, they agreed to pay in rubles for part of the Russian gas exported to Turkey, AFP and Anadolu news agencies report on Saturday, August 6, citing statements by the head of the Turkish state.
“One of the positive results of the negotiations in Sochi was the agreement on the transition to ruble payments (for gas. – Ed.)”, – the agency quotes Erdogan. Anadolu. “The presidents have agreed that we are starting partial gas supplies and paying for them in rubles,” Russian Deputy Prime Minister Alexander Novak confirmed to journalists. None of the parties said what part of gas supplies will now be paid in national currency.
On the eve of Novak, announcing the agreements reached, he said that it was a gradual transition to settlements in national currencies, without specifying the timing. “We are gradually switching to payment in the national currency, part of the supplies will already be paid in Russian rubles. This is really a new stage that opens up new opportunities, including for the development of our monetary and financial relations,” the Russian Deputy Prime Minister noted.
Turkey seeks to maintain foreign exchange reserves
“Since we will conduct this trade in rubles, this, of course, will bring money to Turkey and Russia,” Erdogan stressed. Partial refusal to pay for gas in dollars will help Turkey maintain its dwindling foreign exchange reserves, the AFP agency notes.
The Turkish government has spent tens of billions of dollars in recent years trying to keep the lira from plummeting during the country’s ongoing economic crisis, AFP recalls. The national currency nevertheless lost 55 percent of its value against the dollar in a year, and annual inflation reached 80% in the country.
Russia supplies gas to Turkey through the Blue Stream and Turkish Stream pipelines. At the end of 2021, the volume of supplies amounted to 26 billion cubic meters.
Turkish banks and Russian Mir cards
In addition, Erdogan, following the talks, said that he and Putin had developed a new “road map” to strengthen bilateral relations, which would serve as “a source of strength between Turkey and Russia in financial terms.” The President of the country said that five Turkish banks are working to expand the use of the Russian payment system “Mir”, which, according to him, will facilitate the stay of tourists from the Russian Federation in Turkey.
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The world market of liquefied gas: suppliers and buyers
Tankers headed for Europe
In 2022, the supply of liquefied natural gas to Europe may reach record levels. Many LNG exporters are now sending tankers not to Asia, but to the EU market: after a sharp rise in natural gas prices, its attractiveness has increased significantly. In addition, the Europeans themselves are increasing purchases to reduce dependence on Russia. All the more so as LNG production around the world is rapidly expanding.
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Australia temporarily takes the lead
Australia became the world’s largest LNG supplier in 2021. It overtook Qatar and exported record volumes of gas in the history of the country. On Curtis Island near Gladstone in the east of the country, three large gas liquefaction plants are located next to each other. Investors in these projects are the world’s leading energy companies, including Shell, Total, Petronas, ConocoPhillips, Sinopec.
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The world market of liquefied gas: suppliers and buyers
The United States will become the largest exporter of LNG
In 2022, according to forecasts, the United States will become the largest supplier of LNG to the world market. It is expected that then they will secure this title for at least a few years. One of the centers of gas liquefaction was the city of Corpus Christi in Texas on the coast of the Gulf of Mexico. In its vicinity, Cheniere Energy, a leading American exporter, commissioned the 3rd line of its plant in 2021.
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The world market of liquefied gas: suppliers and buyers
Qatar invests in expanding production
A familiar picture for Qatar: in the port of Ras Laffan, several tankers are simultaneously loaded at once. However, in 2022, the emirate may yield to the US and Australia in terms of exports. But it has every chance to regain its world leadership due to both low production costs and further development of the giant North Field offshore field in two phases: until 2025 and until 2027.
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The world market of liquefied gas: suppliers and buyers
Supplies from the Russian Arctic
Russia is also among the top ten world leaders. At the same time, the Gazprom plant on Sakhalin supplies buyers in Asia, and the Novatek-owned Yamal LNG facility, where these ingeniously designed tanks are located, sends tankers to Europe, especially in winter when the Northern Sea Route freezes. In 2023-2025, Novatek plans to commission three lines of the Arctic LNG 2 plant.
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The world market of liquefied gas: suppliers and buyers
Korean floating plant for Mozambique
Liquefaction technology allows more and more countries to enter the world market. In 2022, the first floating LNG plant in Africa, built at one of the shipyards in South Korea, will start working off the coast of Mozambique. The ceremony of its launch in November 2021 was attended by the presidents of both countries. The Coral-Sul FLNG project involves, in particular, Eni, BP and Korea Gas Corp (KOGAS).
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The world market of liquefied gas: suppliers and buyers
Rotterdam accepts orders from Germany
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The world market of liquefied gas: suppliers and buyers
Spain has a long history
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The world market of liquefied gas: suppliers and buyers
The island of Krk can also supply Ukraine
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The world market of liquefied gas: suppliers and buyers
Gas for Poland and its neighbors
In 2022, Poland ends a long-term contract with Gazprom, which it will not renew. The almost completed Baltic Pipe pipeline for the import of blue fuel from Norway, as well as liquefied gas, is called upon to replace Russian gas supplies. It is accepted by the LNG terminal in Swinoujscie, which has been operating since 2015. From here, gas can also be pumped to neighboring countries – Germany, Lithuania, Ukraine.
Author: Andrey Gurkov
