Tag Archives: business

Uzbek-Tajik relations worsen

DEC. 20 2010 (The Conway Bulletin) – The latest flashpoint may have been a squabble over air traffic control arrangements but tension has been rising steadily throughout the year between Uzbekistan and Tajikistan.

Tajikistan is mountainous and controls Uzbekistan’s water supply which is vital for its valuable cotton harvest, while Uzbekistan controls Tajikistan’s gas supply which is vital for staying warm during the freezing winters. Add in a deep-rooted animosity between the Tajik and Uzbek leaders and it is a potent mix.

In 2007/8 the coldest winter for 40 years hit Tajikistan. Citing unpaid bills, Uzbekistan temporarily switched off the gas supply.

Since then, Tajikistan has pushed hard to improve its energy self-sufficiency and, backed by the Iranians, has started to build a dam on a tributary to the Amu Darya River which flows through Uzbekistan to the Aral Sea. The dam will produce hydroelectric power for a new power station but it will also stop water rushing down into Uzbekistan.

Tajikistan has accused Uzbekistan of blocking trade and supply routes in response to the construction of the dam and also laying mines around the border. Uzbekistan denies these accusations.

There is a wider international dimension — Russia and the United States are competing for influence while Iran has publicly backed Tajikistan. Uzbekistan and Tajikistan are also vying for lucrative contracts to host part of the NATO supply route into Afghanistan.

The interlocking geographic and demographic nature of Central Asia means that whatever happens to Uzbek-Tajik relations will reverberate around Central Asia.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 20, published on Dec. 20 2010)

Major pipeline capacity expansion planned in Kazakhstan

DEC. 15 2010 (The Conway Bulletin) – The Chevron-led Caspian Pipeline Consortium (CPC) agreed to double the capacity of its pipeline pumping oil from the Tengiz field in west Kazakhstan to the Black Sea. The expansion will cost $5.4b and will boost volumes to 1.4m barrels of oil a day by 2015. CPC is a key oil export route for Kazakhstan.

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(News report from Issue No. 20, published on Dec. 20 2010)

Iran wants to boost gas imports from Azerbaijan

DEC. 20 2010 (The Conway Bulletin) – Iran wants to boost gas imports from Azerbaijan in 2011, the Iranian news agency SHANA quoted a senior official at the Iranian National Gas Company (INGC) as saying. Iran has improved ties with its neighbours in Central Asia and the South Caucasus this year especially with Azerbaijan.

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(News report from Issue No. 20, published on Dec. 20 2010)

Kazakhstan’s KMG EP to raise spending

DEC. 14 2010 (The Conway Bulletin) — Kazmunaigas Exploration & Production (KMG EP) said it will increase spending by 15% in 2011 to $661m. The number of production drills KMG EP operates will increase to 239 from 213 and its exploration budget will double to $55m. KMG EP is traded in London. Kazmunaigas holds the controlling stake.

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(News report from Issue No. 20, published on Dec. 20 2010)

Tajikistan and Uzbekistan row over air traffic control

DEC. 16 2010 (The Conway Bulletin) — Tajikistan has rejected a new air traffic
control agreement with Uzbekistan, RFE/RL’s Tajik service reported. The new deal
was supposed to be a permanent replacement for the 16 year old agreement Uzbekistan ripped up this summer. Relations between Uzbekistan and Tajikistan have deteriorated throughout the year.

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(News report from Issue No. 20, published on Dec. 20 2010)

WikiLeak reveals BP gas leak in Azerbaijan

DEC. 15 2010 (The Conway Bulletin) —  A US diplomatic cable published by WikiLeaks revealed how in September 2008 a gas leak forced BP to evacuate 211 workers from one of its biggest oil drilling platforms in the Azeri sector of the Caspian Sea. The cable said BP tried to limit public information of the gas leak which shut down part of production at the Azeri-Chirag-Guneshli field.

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(News report from Issue No. 20, published on Dec. 20 2010)

Turkmenistan pushes the TAPI gas pipeline forward

DEC. 12 2010 (The Conway Bulletin) —  It is still a long way off, but Turkmenistan, Afghanistan, Pakistan and India took a determined step forward on Dec. 11, 2010 to turning a 15-year-old pipe dream into reality.

The four countries finally signed an accord which binds them to building a 1,700km gas pipeline from the Dauletabad gas field in southeast Turkmenistan across Afghanistan and Pakistan to Fazilka, an Indian border town. It has been talked about since 1995 but war in Afghanistan and a lack of political will delayed the project.

Now, they want the so-called TAPI pipeline operating by 2014 even though the route goes through Taliban controlled parts of Afghanistan. Estimates put the cost of the pipeline, which will have a capacity of 33b cubic metres a year, at between $3.3b and $7.5b.

For the US, the pipeline is important because it acts as an alternative to a proposed pipeline running to Pakistan and India from Iran.

TAPI has gained momentum, largely because India has pushed to increase its energy import options and because of a leadership change in Turkmenistan. Turkmenistan’s leader Kurbanguly Berdymukhamedov, president since Dec. 21 2006, has been eagerly courting Western, Chinese and Iranian investors since an argument over gas prices with Russia in 2009.

Turkmenistan, which holds the world’s fourth largest gas reserves, has a growing list of clients and an expanding web of pipelines feeding these customers directly with its gas. If TAPI goes to plan, Turkmenistan is set to become an important energy supplier to South Asia.

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(News report from Issue No. 19, published on Dec. 13 2010)

Industrial output in Kazakhstan rises 10.5%

DEC. 10 2010 (The Conway Bulletin) — Industrial output in Kazakhstan rose 10.5% in the first 11 months of 2010 compared to the same period in 2009 but agricultural output fell by 12.3%, the Kazakh Statistics Committee said. This reflects Kazakhstan’s rebound from recession but also a drought which hit grain production.

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(News report from Issue No. 19, published on Dec. 13 2010)

Kazakhstan to double oil export duty

DEC. 9 2010 (The Conway Bulletin) — Kazakhstan will double export duty on oil to $40/tonne from Jan. 1 2011, the Kazakh finance ministry told Bloomberg. Kazakhstan introduced a $20/tonne duty in May 2008 but ditched it in Jan. 2009 when oil prices fell sharply. It reintroduced the tax in August 2010.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 19, published on Dec. 13 2010)

Pipeline from Turkmenistan to India takes shape

DEC. 11 2010 (The Conway Bulletin) — The leaders of Turkmenistan, Afghanistan and Pakistan and the Indian energy minister struck a deal in Ashgabat to build a pipeline carrying Turkmen gas 1,700km across Taliban-held territory to India. The cost and timing of the so-called TAPI pipeline have yet to be agreed.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 19, published on Dec. 13 2010)