Tag Archives: business

Editorial: Turkmenistan’s pipeline

JAN. 8 2016 (The Conway Bulletin) – Turkmenistan completed its $2.5b East-West Pipeline, a project with a stated objective of making gas available for export.

The pipeline can transport around 30b cubic metres of gas to the Turkmen Caspian shore and it could then potentially be linked to a Trans- Caspian Pipeline which connects to another pipeline system to Europe.

But, and this is the catch, there is no plan to build a pipeline across the Caspian Sea to Azerbaijan from Turkmenistan. It’s a big catch and must be causing policymakers in Turkmenistan to lose sleep.

There is neither an agreement nor funding ready for a trans-Caspian link and bringing gas to the western part of Turkmenistan doesn’t necessarily mean it will continue to Europe.

The Turkmen government hailed the East-West Pipeline as a step towards Europe, but it could be Turkmenistan’s White Elephant. The East- West Pipeline was planned and commissioned during the height of the hype of building a trans-Caspian pipeline. With low oil and gas prices, the world is a very different place today.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(Editorial from Issue No. 262, published on Jan. 8 2016)

 

Turkmenistan launches new east-west gas pipeline

DEC. 23 2015 (The Conway Bulletin) – Turkmenistan launched a new pipeline that will connect its gas fields in the east to the port of Turkmenbashi on the Caspian shore, a move that many consider a step towards exporting gas to Europe.

The 733km, 30b cubic metres pipeline, simply called East-West, will become the main cross-country artery for Turkmen gas, joining several other elements in the country’s existing gas infrastructure.

Turkmen President Kurbanguly Berdymukhamedov hailed the project as a significant achievement.

“The new pipeline will give impetus to the industrialisation of the country as well as increase the potential for Turkmenistan’s gas exports to Russia, Iran and Europe,” he said at the opening ceremony.

China buys the majority of Turkmen gas production, roughly 70b cubic metres, but Turkmenistan has also started work on the TAPI pipeline that should run to India.

The biggest prize, though, is selling gas to Europe. Mr Berdymukhamedov has held talks with European officials but no deal has been struck yet. To pump gas to Europe, Turkmenistan needs to build additional pipelines.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 262, published on Jan. 8 2016)

 

ArmOil to build $35m oil refinery in Armenia

DEC. 25 2016 (The Conway Bulletin) — ArmOil, a privately-owned Armenian oil company, will finance the construction of the first oil refinery in the country, a move that would make Armenia less dependent on Russian refined products.

The company will pay for the $35m refinery, which would be built in Yeghvard, a town 20 km north of Yerevan.

Karen Chshmarityan, Armenia’s minister of economy, said the deal will include the construction of a storage facility and a small refinery.

“At the initial stage the company will build a storage facility for 4,000 tonnes of oil products and then equip it with a laboratory, and in 2016 the company will build a small refinery,” Mr Chshmarityan said.

ArmOil, owned by a Russian-Armenian group of businessmen, was founded in 2013 and does not publicly disclose company data.

Armenia has wanted to build an oil refinery for more than a decade. From 1999 to 2007, Russian energy company Gazprom said it was considering building a refinery but the plan was scrapped.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 262, published on Jan. 8 2016)

Georgia talks to Iran about gas

JAN. 4 2016, TBILISI (The Conway Bulletin) — Georgia started negotiations with Iran to buy gas and electricity, apparently strengthening its intention to diversify away from Azerbaijan as the main source for gas imports.

Energy minister Kakha Kaladze told local press negotiations could start soon.

“We will start start talking over gas as well as electricity. Iran is rich in resources and we should benefit from its resources as much as possible,” Mr Kaladze had said earlier in December.

Iran confirmed the negotiations and said it would be able to deliver between 8 and 15b cubic metres of gas to the Armenian border, from where it would be shipped north to Georgia.

Officials at Azerbaijan’s state energy company SOCAR put a brave face on news of Georgia’s negotiations, but the talks would have irritated them. When Georgia opened talks with Russia to increase gas supplies last year, Azerbaijan released a testy diplomatic note reminding Tbilisi of its contractual obligations.

ENDS

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(News report from Issue No. 262, published on Jan. 8 2016)

 

Stock market: Nostrum Oil & Gas, Roxi Petroleum

JAN. 8 2016 (The Conway Bulletin) — The winter break has not been too kind to stock prices of oil and gas companies focusing on the South Caucasus and Central Asia. The continued fall in oil prices, now at around $33/barrel, has not stopped yet, which keeps investors worried.

After a rough third week of December, when they lost between 4-6%, Nostrum Oil & Gas and Roxi Petroleum shares picked up again, only to fall back to mid-December levels.

Nostrum’s 15% spike on Dec. 23 was reabsorbed in the first week of January. Roxi shares grew 60% in two days from Dec. 28, but it is now trading back at 8.25p. Tethys Petroleum suf- fered most, as its shares lost 28% .

The two Georgian companies listed in London, Bank of Georgia and Georgia Healthcare Group were hit too. Bank of Georgia lost 8.2% in the past three weeks, closing at £17.87. Georgia Healthcare Group lost 4%, closing at £1.56.

ENDS

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(News report from Issue No. 262, published on Jan. 8 2016)

Kyrgyzstan-Kumtor talks collapse

DEC. 22 2015 (The Conway Bulletin) – Kyrgyz government officials quit 2- year-long talks with Toronto-listed Centerra Gold, the company that owns the Kumtor gold mine, over a new ownership structure deal. Talks had focused on Kyrgyzstan swapping its 32.7% stake in Centerra Gold for a 50% stake in the subsidiary that directly owns the Kumtor mine. Relations between the two sides have been strained.

ENDS

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(News report from Issue No. 262, published on Jan. 8 2016)

 

 

Netflix expands from Armenia to Tajikistan

JAN. 7 2016 (The Conway Bulletin) — The US online streaming service Netflix expanded its operations to 130 new countries, including those former Soviet states of South Caucasus and Central Asia. The expansion will give customers from Armenia to Tajikistan access to popular US TV shows through their internet connection.

ENDS

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(News report from Issue No. 262, published on Jan. 8 2016)

 

New pharma factory to open in Georgia

DEC. 25 2016 (The Conway Bulletin) — The Georgian government and Austrian company Humanity Holding will team up to build a $130m pharmaceutical factory in Tbilisi. Humanity established a daughter company, Humanity Georgia, to run the project. The factory will produce 800 pharmaceutical products. Humanity Georgia will also import pharmaceutical products from abroad. Georgia’s state-owned Partnership Fund will co-fund the project.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 262, published on Jan. 8 2016)

Frontera to give assessment for Georgian gas complex

DEC. 23 2016 (The Conway Bulletin) — US-based Frontera Resources said its final geological assessment of the South Kakheti gas complex it operates in Georgia will be completed in the first quarter of 2016. Frontera said it also plans to shortly start production, which will initially amount to 77m cubic metres of gas annually.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 262, published on Jan. 8 2016)

Kyrgyzstan expels Scottish worker after he insults horse-meat sausages

JAN. 5 2016, BISHKEK (The Conway Bulletin) — Kyrgyzstan deported a Scottish welder working at the country’s biggest gold mine after he jokingly described a horse-meat sausage delicacy as a horse’s penis, an incident that highlights Kyrgyz sensitivities over their national identity.

Michael Mcfeat wrote next to a photo on his Facebook account of workers lining up at a canteen at the Kumtor gold mine on New Year’s Eve: “The Kyrgyz people queuing out the door for there special delicacy the horses penis!!” (sic).

He was poking fun at the chu- chuk, a sausage made up of horse meat and fat which is boiled and served sliced up before festive meals. Local staff, though, at the gold mine, run by Toronto-listed Centerra Gold, were outraged and called a strike.

Mr Mcfeat, 39, tried to leave the country but was detained at Bishkek airport. Media suggested that he could have been prosecuted for racial hatred but instead he was deported for visa infringements.

Mr Mcfeat did not work directly for Centerra Gold but instead for a sub- contractor.

Still, it has aggravated relations between Centerra Gold and Kyrgyzstan. The two sides are locked in a dispute over ownership.

Adil Turdukulov, a Bishkek-based analyst, said relations between foreign and local staff at Kyrgyzstan’s various mining projects are strained over unequal pay and conditions.

“Tense relations between local and foreign employees of Kumtor have been growing, and this is just an effect,” he said.

Kyrgyzstan has been independent since 1991 and, like other Central Asian states, is sensitive about its identity.

And on the streets of Bishkek, most people thought that Mr Mcfeat had gotten off lightly.

Roza, 62, said that he should think before poking fun at Kyrgyzstan as some of Scotland’s own delicacies sounded foul.

“The Scots also eat sheep’s stomach stuffed with heart, oatmeal, guts and fat,” she said referring to haggis, a Scottish national dish.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 262, published on Jan. 8 2016)