SEPT. 30 2014 (The Conway Bulletin) – Russian energy companies Lukoil and Bashneft will supply Kazakhstan with extra petrol and diesel fuel to make up for the current shortfall, Russian news agency RIA-Novosti quoted Russia’s energy minister, Alexander Novak, as saying. Kazakhstan has a shortage of refinery capacity which is causing shortages.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Spanish natural gas provider Enagas bought a 16% stake in the TAP pipeline that will pump gas from the Azerbaijani sector of the Caspian Sea to central Europe.
The purchase of the shares, a 10% stake from France’s Total and a 6% stake from Germany’s E.ON underline how important European countries consider the project to be.
Belgium’s Fluxys also increased its stake to 19%. The other shareholders in TAP are BP, Norway’s Statoil and Azerbaijani energy company SOCAR all with 20% of the project. Swiss energy company Axpo also owns 5% of TAP.
Reuters quoted Kjetil Tungland, TAP’s managing director.
“The TAP joint venture has always been open to new strategic partners,” he said.
“Enagas … will help to enhance TAP’s strategic position as a truly European project that will transport a new source of gas to the continent’s energy markets.”
The pipeline is scheduled for completion in 2018. European countries consider it an essential piece of infrastructure development to diversify their gas deliveries away from Russia, through which most of its gas was being delivered.
The plan is for TAP to run 870km from the Shah Deniz II field in the Caspian Sea to the Turkey-Greece border. There it will connected to another pipeline called TANAP which will pump the gas through the Balkans and across to Italy. From Italy the gas can be re-distributed across Europe.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Spanish natural gas provider Enagas bought a 16% stake in the TAP pipeline that will pump gas from the Azerbaijani sector of the Caspian Sea to central Europe.
The purchase of the shares, a 10% stake from France’s Total and a 6% stake from Germany’s E.ON underline how important European countries consider the project to be.
Belgium’s Fluxys also increased its stake to 19%. The other shareholders in TAP are BP, Norway’s Statoil and Azerbaijani energy company SOCAR all with 20% of the project. Swiss energy company Axpo also owns 5% of TAP.
Reuters quoted Kjetil Tungland, TAP’s managing director.
“The TAP joint venture has always been open to new strategic partners,” he said.
“Enagas … will help to enhance TAP’s strategic position as a truly European project that will transport a new source of gas to the continent’s energy markets.”
The pipeline is scheduled for completion in 2018. European countries consider it an essential piece of infrastructure development to diversify their gas deliveries away from Russia, through which most of its gas was being delivered.
The plan is for TAP to run 870km from the Shah Deniz II field in the Caspian Sea to the Turkey-Greece border. There it will connected to another pipeline called TANAP which will pump the gas through the Balkans and across to Italy. From Italy the gas can be re-distributed across Europe.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 24 2014 (The Conway Bulletin) – The European Bank for Reconstruction and Development (EBRD) sold its 5% stake in Bank of Georgia.
The sale ends the EBRD’s mission to support Bank of Georgia after the 2008 Global Financial Crisis. It took control of the stake in 2012 after a financial aid package put together in December 2008 was converted into shares.
“The EBRD’s role in supporting Bank of Georgia in the aftermath of the 2008 crisis is now complete,” Reuters quoted Nick Tesseyman, the EBRD MD, as saying.
“The EBRD will continue to provide debt financing to Bank of Georgia going forward as part of our continued support to the Georgian financial sector.”
The Bank of Georgia is publicly listed on the London Stock Exchange.
In many ways the sale of the EBRD’s 5% stake in Bank of Georgia is a success for Georgia as a country. The EBRD would not have sold its stake if it didn’t think that the bank was stable enough and if there wasn’t enough investor interest in Georgia and its finance industry.
Bank of Georgia CEO Irakli Gilauri acknowledged this.
“This transaction illustrates the depth of support for the bank from international investors and signals increasing investor interest in Georgia’s capital market,” he said.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 29 2014 (The Conway Bulletin) – The European Bank for Reconstruction and Development (EBRD) has agreed to lend Kazakhstan’s railway company $165m as part of its upgrade plan, media reported. This is important because it shows that Kazakhstan continues to attract investment despite declining economic growth rate predictions.
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(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 29 2014 (The Conway Bulletin) – Despite a World Bank report tentatively giving backing to Tajikistan’s Rogun Dam, Uzbekistan foreign minister Abdulaziz Kamilov used a speech at the UN to underline his country’s continued opposition to the project. Increased tension between Uzbekistan and Tajikistan over the dam is an important issue to monitor.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Shares in Kazkommertzbank have nose-dived since it bought a stake in BTA Bank from the Kazakh government.
By the end of September, shares in KazKom, as the bank is commonly known, traded at $1.65 on the Kazakh Stock Exchange, down by 37.5% since July when it completed buying nearly half of BTA.
Analysts said the drop highlighted the toxic nature of BTA’s bad debt portfolio and a drop in profit. KazKom said profit for the first half of 2014 was down by 6%.
A source from the banking industry said: “Most bad loans are with BTA which is unable to recover them from its debtors. This entails a huge cost.”
Mountains of bad debt still holds back Kazakhstan’s financial sector, a legacy of the Global Financial Crisis of 2008/9 when the government had to buy up a handful of banks. One of these was BTA Bank.
At the end of last year, the Kazakh government said it wanted to sell its shares in government-owned banks.
Kenes Rakishev, a young Kazakh businessman with strong links to the elite and KazKom, controlled by the London- based businessman Nurzhan Subkhanberdin agreed in February to buy the bank. At the time, sources with knowledge of the Kazakh finance centre said buying BTA Bank made no business sense for KazKom. Instead, they said, it was a political move by Mr Subkhanberdin to win favour.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Russian mobile operator MTS said it wants to invest $40m over the next year in setting up 3G mobile services in Turkmenistan. MTS is one of the biggest mobile operators in Central Asia and, as reported, has also recently patched up its differences with Uzbekistan.
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(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Despite statements earlier this year to the contrary, Iran will increase gas exports from Turkmenistan to make up for a shortfall in its own production.
Reuters quoted the Shana Iranian news agency as quoting Hamid-Reza Araqi, Iran’s oil minister, as saying, that imports would rise in accordance to a long term contract between the two countries.
“Iran has a long-term contract with Turkmenistan, based on which the volume of gas exports increases,” he said.
Western sanctions aims at hampering Iran’s alleged development of its nuclear weapons programme have also slowed its gas production, mainly based in the south of the country. And so it has looked to neighbouring Turkmenistan to make up the shortfall. Over the past few years, Turkmenistan has supplied 90% of Iran’s gas imports.
News that Turkmenistan will further increase its gas exports to Iran will again cement its position as one of the region’s leading gas suppliers.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)
SEPT. 30 2014 (The Conway Bulletin) – Kazakh president Nursultan Nazarbayev hinted at a meeting with Russian President Vladimir Putin that he may not be as enamoured with green energy as he has suggested.
This is important because Kazakhstan’s government has spent time and money promoting itself as a standard bearer for Green Energy, including devoting much of the sales pitch of its centrepiece event EXPO-2017 in Astana to it.
“I personally do not believe in alternative energy, such as wind, and solar,” media quoted Mr Nazarbayev as saying after meeting Mr Putin in Atyrau on the Caspian Sea coast.
“I think the shale euphoria also does not make much sense. Oil and gas are our main horses and we do not need to be afraid that they are fossil fuels.”
This view may not be that surprising, afterall the economies of both Kazakhstan and Russia are based on oil and gas exports.
Even so, Kazakhstan has given the impression it wants to move on from its reliance on oil and gas for its wealth.
Throughout Kazakhstan’s cities advertise EXPO-2017 with posters carrying the slogan ‘The Energy of the Future’ against a background of a green valley filled with wind turbines and solar panels.
Kazakhstan’s future energy policy is further complicated because it has agreed a deal with Russia to build a new nuclear power station.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 202, published on Oct. 1 2014)