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6 Pages

The new reality for Central Asian gas


The new reality for Central Asian gas

Report summary

In 2014, more Central Asian gas was delivered to China than to Gazprom for the first time. With Gazprom cutting its purchases, the dependence on the Chinese market could already be of concern. Slower Chinese demand growth is compounding this anxiety. Moreover, in the current low oil price, supplies are struggling to compete with LNG in coastal China.

Central Asian gas production will grow over the next decade, but regional governments are under pressure to find alternative monetisation options.

What's included?

This report includes 2 file(s)

  • The new reality for Central Asian gas PDF - 307.44 KB 6 Pages, 0 Tables, 6 Figures
  • 2015 04 central asia gas insight.xls XLS - 137.00 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • Gazprom cuts Central Asia’s most reliable export revenues
  • China is the key export market, but near-term growth is under threat
  • Spot LNG more attractive than China’s piped imports at US$60/bbl...
  • …while oil price fall is now working through to LNG contracts with lagged indexation
  • Reduced Gazprom purchases hit Turkmenistan and Uzbekistan state revenues
  • Key upstream developments must re-evaluate
    • Turkmenistan
    • Uzbekistan
  • Alternatives? Domestic monetisation easier than export diversification

In this report there are 6 tables or charts, including:

  • Gazprom cuts Central Asia’s most reliable export revenues
    • Central Asian gas production: 2005-2025
    • Central Asian gas production: 2005-2025, by market
  • China is the key export market, but near-term growth is under threat
    • China gas demand and growth rate (2011-2019)
  • Spot LNG more attractive than China’s piped imports at US$60/bbl...
    • 2015 delivered cost comparison at US$60/bbl Brent (Shanghai, US$/mmbtu)
  • …while oil price fall is now working through to LNG contracts with lagged indexation
    • Piped gas and LNG price competitiveness (Shanghai-delivered): 2014–2015
    • Existing and new LNG contracts to China: 2015-2019
  • Reduced Gazprom purchases hit Turkmenistan and Uzbekistan state revenues
  • Key upstream developments must re-evaluate
  • Alternatives? Domestic monetisation easier than export diversification
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