Gazprom to buy 0.5 bcm of Azerbaijani gas annually from 2010

(GAZPROM, AZERBAIJAN, MILLER, RUSSIAN, AZERBAIJANI, SUPPLIES)

BAKU, June 29 (RIA Novosti) - Gazprom will buy 500 million cubic meters of natural gas from Azerbaijan annually from January 1, 2010, CEO Alexei Miller said on Monday.
The Russian energy giant, which has not so far bought Azerbaijani gas, signed an agreement with the State Oil Company of Azerbaijan Republic (SOCAR) earlier in the day.
"Gazprom will buy Azerbaijani gas from January 1, 2010. Initially we will buy 500 million cubic meters of Azerbaijani gas," Miller said, without disclosing either the price or the pricing formula.
"The agreement signed today fixes a basic price that is commercially attractive to our Azerbaijani partners," the Russian businessman said.
The agreed volume of deliveries from SOCAR is less than one tenth of one percent of the 549.7 billion cubic meters of gas Gazprom itself produced last year.
Azerbaijan plans eventually to increase gas supplies to Russia, Azerbaijani President Ilham Aliyev said.
"We plan in the future to increase supplies as the volume of Azerbaijani natural gas production goes up," Aliyev said on Monday after talks with Russian President Dmitry Medvedev in Baku.
According to the Gazprom CEO, Azerbaijani gas to be pumped via a pipeline running between the two countries will be used in south Russian territories. He also pledged that similar volumes of gas would be reserved for European consumers.
Miller added that Gazprom was listed as a potential buyer of gas from the Shakh Deniz field with some privileges reserved for the company.
"We are confident that Gazprom has very good negotiating positions regarding long-term cooperation in the purchase of Azerbaijani gas," he said.
Speaking in early June at an oil conference in Azerbaijan`s capital, Baku, U.S. Deputy Assistant Secretary of State for European Affairs Matthew Bryza said that in 2012-2015 Azerbaijan would supply Europe with 12 billion cu m of gas from its Shakh Deniz field alone, raising supplies to 15 billion by 2015, and increasing them further by 2015-2020.
 
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Medvedev to discuss energy, trade during Azerbaijan visit

Russia to raise oil export duty to $212.6 per ton from July 1

(EXPORT, CURRENT, GLOBAL, GOVERNMENT, PRODUCTS, PRICE)

MOSCOW, June 29 (RIA Novosti) - Russia will increase oil export duty from the current $152.8 to $212.6 per metric ton from July 1, following trends on global oil markets, the Russian government said on its website on Monday.
The decree was signed by Russian Prime Minister Vladimir Putin on June 26.
As of July 1, the duty on light petroleum products will rise to $155.5 from the current $115.2 per ton and for heavy petroleum products to $83.8 from the current $62.1 per ton.
Last year, the government abandoned its previously accepted bimonthly adjustments of export duties based on the price of the Urals blend on global oil markets, and from December 1 switched to setting duties for oil and oil products on a monthly basis to respond more swiftly to changes in world oil prices.
The global financial crisis has forced Russia, which receives a large part of its revenues from oil exports, to gradually devalue the ruble amid capital flight and a fall in global oil prices, which declined from their peak of $147 per barrel in July 2008 to around $40 per barrel in early 2009, before climbing back to about $70.
 
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Medvedev to discuss energy, trade during Azerbaijan visit

(AZERBAIJAN, TRADE, ECONOMIC, COOPERATION, SOURCE, NATURAL)

Top plays of the World Cup 2010 qualifier Russia vs. Azerbaijan
MOSCOW, June 29 (RIA Novosti) - Russian President Dmitry Medvedev will visit Azerbaijan on Monday to discuss trade and economic cooperation, including in the energy sector, a Kremlin source said.
"Talks between the leaders of the two countries will focus on the development of trade and economic ties, including effective cooperation during the global economic crisis," the source said.
According to the source, bilateral trade grew by 39.3% to $2.4 billion in 2008, but decreased by 16.9% in the first quarter of 2009 year-on-year due to the global financial crunch.
One of the key areas of cooperation to be discussed during the visit is the supply of natural gas from Azerbaijan to Russia.
Azerbaijan has proven natural gas reserves of some 1.5 trillion cubic meters. The South Caucasus country annually consumes 14 billion cubic meters of gas.
Gazprom`s CEO Alexei Miller said last Friday the Russian energy giant was planning to sign an agreement with Azerbaijan`s state oil and gas company on natural gas supplies from Shah Deniz, the country`s largest gas field. Azerbaijani President Ilkham Aliyev has said Baku sees no obstacles to the gas deal.
 
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House passes landmark climate change bill

By Richard Cowan
WASHINGTON (Reuters) - President Barack Obama scored a major victory on Friday when the U.S. House of Representatives passed legislation to slash industrial pollution that is blamed for global warming.
The House passed the climate change bill, a top priority for Obama, by a vote of 219-212. As has become routine on major bills in Congress this year, the vote was a partisan one, with only eight Republicans joining Democrats for the bill.
The Senate is expected to try to write its own version of a climate change bill, but prospects for this year were uncertain.
The House-passed bill requires that large U.S. companies, including utilities, oil refiners, manufacturers and others, reduce emissions of carbon dioxide and other gases associated with global warming by 17 percent by 2020 and 83 percent by 2050, from 2005 levels.
They would do so by phasing in the use of cleaner alternative energy than high-polluting oil and coal.
"The scientists are telling us there`s an overwhelming consensus ... global warming is real and it`s moving very rapidly," said House Energy and Commerce Committee Chairman Henry Waxman, the chief sponsor of the legislation.
In urging passage, Waxman also said the legislation would create jobs and help move the United States from its reliance on foreign oil.
But Republicans said the bill was a behemoth that would neither effectively help the environment nor improve an economy reeling from a deep recession.
`BIGGEST JOB-KILLING BILL`
House Republican leader John Boehner called the measure "the biggest job-killing bill that has ever been on the floor of the House of Representatives."
Representative Joe Barton, the senior Republican on the energy panel, said the measure would set unrealistic targets for cutting carbon pollution. "You would have to reduce emissions in the United States to the level that we had in 1910," Barton said.
At the core of the bill, which is around 1,500 pages long, is a "cap and trade" program designed to achieve the emissions reductions by industry.
Under the plan, the government would issue a declining number of pollution permits to companies, which could sell those permits to each other as needed.
"The federal government will be joining California in the effort to combat global warming and the framework for doing it is one that is very similar to the one that California has adopted," said that state`s top climate official, Air Resources Board Chair Mary Nichols.
California is recognized as having the most aggressive plan to fight global warming in the United States.
(Additional reporting by Susan Cornwell in Washington and Peter Henderson in San Francisco; Editing by Will Dunham)
Original article

House Democrats push for Friday climate vote

By Richard Cowan
WASHINGTON (Reuters) - The U.S. House of Representatives is poised to vote on Friday on one of the most significant environmental bills in history -- a sprawling measure that aims to wean industry off of carbon-emitting fuels blamed for global warming.
Democratic leaders were working hard to ensure there were at least 218 votes in the 435-seat House to pass the legislation that is a high priority for President Barack Obama.
"It`s all hands on deck," one House Democratic aide said of the work lawmakers and the Obama administration were doing to try to ensure passage of the climate change bill.
With House Republicans mostly opposed and warning it would hit recession-weary consumers in their pocketbooks with higher prices for energy and other everyday goods, supporters were attempting to counter those arguments.
"It is a jobs bill," House Speaker Nancy Pelosi told reporters on Thursday, referring to the hoped-for growth in "green technologies" industries.
The American Council for an Energy-Efficient Economy agreed, saying, "Savings from reduced energy use will be reinvested locally, creating a multiplier effect that will generate economic activity and jobs."
Both Pelosi and Obama also framed the climate bill as being important to national security by reducing U.S. dependence on foreign oil in favor of developing domestically produced alternative fuels such as wind and solar energy and possibly "clean coal."
At the core of the 1,200-page bill is a "cap and trade" plan designed to reduce emissions of carbon dioxide and other greenhouse gases by 17 percent by 2020 and 83 percent by 2050, from 2005 levels.
CHANGES DESIGNED TO WIN FARM-STATE SUPPORT
Big polluters, such as coal-fired utilities, oil refiners, steel, paper, cement and glass manufacturers and other companies would receive government permits to emit lower amounts of carbon dioxide each year. Companies that end up with more permits than they need could sell them to companies that had not managed to adequately reduce their harmful emissions.
Even if Obama and his fellow Democrats manage to pull off a victory this week, the legislation faces a difficult road in the Senate, where Republicans would have an easier time using procedural hurdles to block the bill.
But passage by the House this year would let Obama attend a December international conference on climate change with a major victory in hand. That conference aims to lay out a global approach to dealing with climate change over the next few decades.
In her quest to find enough votes for the bill, Pelosi has allowed several changes since it was approved in late May by the Energy and Commerce Committee. Those have included new protections for agriculture interests, resulting in House Agriculture Committee Chairman Collin Peterson announcing his support -- a move that could also win the support of about two dozen lawmakers from farm states.
Supporters of the bill received other breaks this week, including the release of a Congressional Budget Office analysis concluding the bill`s impact on average households would be around $170 a year in higher costs -- far below the $3,100 or more Republicans have been warning.
A new Washington Post/ABC poll found that three-quarters of the public think the U.S. government should regulate climate-warming greenhouse gases that are being blamed for more severe weather patterns, melting polar ice and threats to animal and plant species.  Continued...
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Health and climate change vie for boost in Congress

By Richard Cowan
WASHINGTON (Reuters) - Barack Obama may be pressuring Congress as no U.S. president has for decades as he aims to get two big domestic goals passed this year -- reforming health care and fighting global warming.
"It's not impossible to do both, but that would be more than a Congress has ever given a president, maybe since the first First 100 Days," said Brookings Institution senior fellow Stephen Hess, referring to the start of Franklin Roosevelt's "New Deal" presidency in 1933.
A further time constraint may be the pressures imposed by the campaign next year for congressional elections in November when the seats of all 435 U.S. representatives and a third of the 100 senators are up for grabs.
Congress in the past often has shown itself to be unable to handle more than one big issue a year, but Obama and his fellow Democrats, who control the Senate and House of Representatives, see a window of opportunity this year to pass two long-standing Democratic goals.
Expanding health care to the uninsured and reducing pollution associated with climate change would have an economic impact on nearly every consumer and most U.S. companies -- from health insurers and utilities, to oil refineries, ailing automakers, steel manufacturers and small businesses.
Nonetheless, Democratic leaders are giving it a run, placing both initiatives on a fast track -- with or without much Republican support.
"The one that has the highest probability of making it is health care," said Bruce Josten, an executive vice president at the U.S. Chamber of Commerce. He noted a full legislative agenda later this year, including annual spending bills, a Supreme Court confirmation and tax legislation, could crowd out a climate bill debate in the Senate.
Nevertheless, several congressional committees are pushing ahead with their review of the bill that aims to cut industry's carbon dioxide emissions 17 percent by 2020 and 83 percent by 2050 with alternative energy sources and energy efficiencies.
The bill's prospects are strengthened by an unusual coalition of environmentalists, corporations and labor unions that have joined the effort. Obama is trying to sell climate change legislation as much more than doing something good for the environment. "Green" job creation and weaning the country off of foreign oil are his major talking points.
According to several Democratic lawmakers, the White House is already working hard to woo Senate Democratic and Republican moderates who will hold the keys to obtaining the needed 60-vote majority in the 100-member Senate.
In the meantime, environmentalists are heartened that four months into Obama's presidency such wide-ranging legislation is advancing, even with its concessions to some industries.
"If it became law today it would be the most important piece of energy and environmental legislation Congress ever produced," said one activist.
HEALTH CARE IN THE LEAD
Of the two, health care might be the bill that is more likely to reach Obama's desk for enactment by year's end. Both houses of Congress hope to blend their respective bills into a compromise measure by October -- Obama's deadline.
Democratic Senator Edward Kennedy has a major role in drafting the new health care bill as head of the Senate Health, Education, Labor and Pensions Committee. The bill would require individuals and businesses to purchase insurance and prohibit insurance companies from refusing to cover anyone because of health history. Continued...
Source: Reuters