Tag Archives: business

ENA to upgrade Armenian power distribution system

APRIL 11 2016 (The Conway Bulletin) – The Electric Networks of Armenia (ENA), the Armenian national grid, said it would invest 20b drams ($42m) into modernising the country’s power distribution system. The largest proportion of this cash will be spent on updating the metering system. Russia-based, but Armenian-owned, Tashir Group bought ENA last year from Russia’s Inter RAO. Electricity is a sensitive topic in Armenia. Last year, when ENA tried to increase prices, streets protests forced it to back down.

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(News report from Issue No. 276, published on April 15 2016)

Armenia receives gas discount

APRIL 8 2016 (The Conway Bulletin) – A week after agreeing to a price cut for its gas exports to Kyrgyzstan, Russian state-owned Gazprom said it would give Armenia a similar discount for this year’s supplies.

Gazprom’s CEO Alexei Miller and Anatoly Yanovsky, Armenia’s deputy energy minister, signed the agreement after Russian PM Dmitri Medvedev visited Yerevan and discussed the price cut with President Serzh Sargsyan.

Gazprom agreed to give a 9% discount for the gas it pumps to Armenia, the same percentage discount as Kyrgyzstan, lowering the price to $150 per 1,000 cubic metres.

The long-awaited discount, importantly, fell short of Armenian officials’ expectations, having seen Gazprom’s prices to Europe fall by an average of 40% in the past 18 months.

“Any decline in prices is positive, but in this case, a $15 drop cannot be considered a serious help to reducing the prime cost of Armenian goods,” Artsvik Minasyan, minister of economy, said.

Armenian officials had said they hoped to get a 12% discount.

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(News report from Issue No. 276, published on April 15 2016)

Kazakh coal production shrinks

APRIL 5 2016 (The Conway Bulletin) – Coal production in Kazakhstan could shrink by as much as 20% by 2040, Bolat Akchulakov, president of Kazenergy, an industry lobby group, said. Kazakhstan relies on coal for 66% of its energy consumption. A number of coal fired power plants are currently being phased out both in Kazakhstan and in Russia, the main destination of Kazakhstan’s coal exports.

ENDS

(News report from Issue No. 275, published on April 8 2016)

Azerbaijani SOCAR to borrow from IBA

APRIL 5 2016 (The Conway Bulletin) – Azerbaijan’s state-owned energy company SOCAR will receive a loan of around $260m from the International Bank of Azerbaijan this year for the modernisation of the Heydar Aliyev oil refinery near Baku, Suleyman Gasimov, SOCAR’s vice president told local media. Last October, SOCAR and IBA agreed to a $1.6b loan that IBA would extend in several periodical tranches.

ENDS

(News report from Issue No. 275, published on April 8 2016)

Aeroflot launches flights to Uzbek capital

APRIL 1 2016 (The Conway Bulletin) – Russian flagship carrier Aeroflot said it is introducing an eight weekly link to Tashkent, a modification of its earlier summer schedule. The new flights will start on June 2, every Thursday from Moscow Sheremetyevo.

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(News report from Issue No. 275, published on April 8 2016)

Copper production increases in Kazakh mine

APRIL 7 2016 (The Conway Bulletin) – Kazakhstan-focused miner Central Asia Metals said copper production at its Kounrad project stood at 3,207 tonnes in the first quarter of the year. This is a 36.5% increase compared to the same period last year. The company said this increase was due to the completion of the first expansion of the SX-EW plant last spring.

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(News report from Issue No. 275, published on April 8 2016)

Kazakh President’s nephew invests in cars

APRIL 4 2016 (The Conway Bulletin) – Automotive holding Allur Auto and Alatau Invest Capital agreed to form a partnership to expand the Kostanai car assembly plant and to create a national brand for Kazakh cars. Alatau is a new financial group owned by the eldest nephew of Kazakh President Nursultan Nazarbayev, Kairat Satybaldy. Earlier in February, the company signed an agreement with Kaspi Bank and Baring Vostok to invest in the IT and financial sectors.

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(News report from Issue No. 275, published on April 8 2016)

Stock market: Central Asia Metals

APRIL 8 2016 (The Conway Bulletin) – Central Asia Metals continued to rally this week in London, establishing a steady positive trend since an all-time low of 124 pence in mid-January.

Its stock price closed at 171p on Thursday, up over a third for the week.

The company is also preparing for the presentation of the yearly results next Monday, which analysts expect to be positive.

“Central Asia Metals operates at a high margin and is thus less affected by low copper prices,” Martin Potts, mining analyst at FinnCap told The Bulletin. “It is an established business in Kazakhstan and it has already repaid all the money it has raised to its shareholders, something unique in this sector.”

In our chart above, we tracked just how closely Central Asia Metals shares and copper have been linked, but it is also possible to note a recent “decoupling” of the two since mid-March.

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(News report from Issue No. 275, published on April 8 2016)

Kazakhstan threatens Karachaganak with fine

APRIL 4 2016, ALMATY (The Conway Bulletin) — The Kazakh government said it was imposing a fine on the consortium operating the Karachaganak gas field in north Kazakhstan, a blow to the companies involved in the project and to corporate governance in the country.

According to Lukoil, one of the companies in the consortium, the fine amounts to $1.6b, potentially the largest-ever penalty imposed on an energy consortium in Kazakhstan.

The Kazakh government has not commented on the size of the fine.

Eni, Shell (through BG), Chevron, Lukoil and state-owned Kazmunaigas are all part of the Karachaganak consortium.

ENDS

(News report from Issue No. 275, published on April 8 2016)

Subsidiary of Kazakhtelecom stops unlimited data

APRIL 7 2016 (The Conway Bulletin) – Altel, a subsidiary of state-owned Kazakhtelecom, said it would phase out its unlimited data package because of lack of network capacity during peak hours. The measure came as a surprise for customers, who turned to online forums to complain. The telecoms market in Kazakhstan is very competitive and companies are seeking new ways to boost revenues. Altel is 49% owned by Tele2 and 51% by Kazakhtelecom.

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(News report from Issue No. 275, published on April 8 2016)