Tag Archives: hydrocarbons

Taliban travel to Ashgabat for talks on TAPI gas pipeline

FEB. 7 2021 (The Bulletin) — Looking for security guarantees for the TAPI gas pipeline that it wants to build across Afghanistan, Turkmen officials held talks in Ashgabat with the Taliban. TAPI is an ambitious project, pushed by gas-rich Turkmenistan and part-funded by the Asian Development Bank, to build a pipeline across Afghanistan to Pakistan and India. One of the main problems with the project has been security concerns in Afghanistan.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Italian company wins Heydar Aliyev refinery update project

FEB. 3 2021 (The Bulletin) — Italian engineering company Maire Tecnimont said that it had won a tender in Azerbaijan to modernise part of the Heydar Aliyev oil refinery outside Baku. It said that the new project is worth $160m and will take up to three years to complete. Azerbaijan, like its neighbours, is investing in power generation and refining capabilities, creating opportunities for Western contractors.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbek refinery workers protest over job threat

JAN. 19 2021 (The Bulletin) — Workers at the Altyaryk oil refining plant in Uzbekistan’s Ferghana Valley have been striking and staging sit-ins since Jan. 10 because of what they say are planned job cuts, media reported. The refinery management has said that it is modernising the plant to upgrade it to Euro-5 standard fuel production and that jobs will be preserved. Workers, though, told the Eurasianet website that there hasn’t been any fuel production since July and that 2,000 jobs will be lost.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Fuel prices rising in Tajikistan

JAN. 18 2021 (The Bulletin) — Fuel prices are rising in Tajikistan, media reported by quoting local taxi drivers who said that there had been a 10% increase in the past week. Analysts said that the fuel price increase is linked to a drop in imports of fuel from Russia and Kazakhstan. Tajikistan does not have its own oil refinery and is reliant on imports.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power outages dent Kazakh oil exports

JAN. 18 2021 (The Bulletin) — Power outages in Kazakhstan have caused Kazakh oil exports to fall by around 130,000 barrels per day, Reuters reported by quoting a source. The source said that power outage problems were impacting production at the country’s two main fields, Tengiz and Kashagan, in the west of the country. From Jan. 17, the source said, Kazakhstan had been pumping 1.62m barrels of oil per day, down from its target of 1.75m.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Turkmenistan opens new gas compressor station

JAN. 16 2021 (The Bulletin) — Turkmenistan opened a new compressor station that it said would double the volume of gas pumped to China. Gas is the cornerstone of Turkmenistan’s economy and China is, by a wide margin, its largest client. The coronavirus, and the various measures taken to counter it, have forced a slump in demand for gas from China, hurting the Turkmen economy. Turkmen president Kurbanguly Berdymukhamedov said that the compressor station would double the volume of gas that could be pumped to China.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power failure causes blockouts and fuel shortages in Central Asia

ALMATY/JAN. 5 2021 (The Bulletin) — A failure in the system that transmits electricity around Central Asia triggered the shut down of several power stations, causing blackouts across the region and fuel shortages in Uzbekistan (Jan. 5).

The breakdown of transmission lines also highlighted the fragility of the electricity transmission network, dubbed the United Energy System

Analysts said that a surge in power use in Uzbekistan was probably to blame for the breakdown of transmission lines. This triggered blackouts in Almaty, Bishkek and several regions in Uzbekistan because emergency systems automatically shut down several power stations.

Uzbek officials also said the blackouts caused a production drop at the Mubarek Gas Processing plant, in the south of the country. Drivers in Uzbekistan use gas to fuel their cars and restrictions were announced.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Caspian Sea gas reaches Central Europe

BAKU/JAN. 1 2021 (The Bulletin) —  Gas produced in the Azerbaijani sector of the Caspian Sea which is then pumped through a 3,500km pipeline that cost $45b to build is now, finally, reaching central Europe.

The completion of the so-called Southern Gas Corridor is viewed in Europe as an important part of its strategy to reduce its reliance on Russia for gas supplies, and in Baku as the start of what Azerbaijan’s President Ilham Aliyev hopes will be a major boost for the economy.

“The Southern Gas Corridor will strengthen the system of global energy security. It has connected the Caspian region to Europe,” Azerbaijan’s energy ministry said in a statement after Greece, Bulgaria and Italy confirmed that gas had arrived through the Trans-Adriatic Pipeline, the final part of the Southern Gas Corridor.

The question analysts have posed, though, is not if gas will be delivered to Europe, but how much? There have been concerns that lockdowns imposed to control the coronavirus pandemic have dented demand for consumers for gas, although what is shaping up to be a cold European winter may have changed this thinking.

Linked pipelines running across Azerbaijan, Georgia, Turkey and the Balkans now pump gas directly from the BP controlled Shah Deniz 2 project in the Caspian Sea to Europe. 

The European Commission is keen on the project because it wants to reduce its dependency on Russia, which controls 34% of the European gas market.  It first floated the plan to build a pipeline from the Caspian Sea to Europe in 2008.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Romania’s OMV sells Kazakhstan assets

DEC. 29 2020 (The Bulletin) –Romania’s OMV sold its two subsidiaries in Kazakhstan, KomMunai and Tasbulat Oil, to Magnetic Oil, which is inked to the Kazakh elite for an undisclosed because it said that it wanted to concentrate on projects closer to its core base in the Balkans. KomMunai and Tasbulat Oil owned four production licences for onshore fields in Kazakhstan’s western Mangistau region.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

The Caspian Sea is shrinking, warn scientists

ALMATY/DEC. 23 2020 (The Bulletin) —  The Caspian Sea, which provides a livelihood for thousands of people and acts as a fulcrum for international transit routes through the Central Asia and South Caucasus region, is shrinking, new scientific research showed (Dec. 23).

The report produced by universities in Germany and the Netherlands said that the Caspian Sea could lose up to a third of its water by 2100, with water level dropping by 18m, marooning previously important ports hundreds of kilometres inland.

The report’s authors said they wanted to use the threat to the Caspian Sea to highlight the dangers of global warming to inland seas and lakes.

“A massive warning signal is the projected catastrophic drop in water levels for the Caspian Sea, the largest lake in the world, which could hit stakeholders unprepared,” the report said. 

Previous studies have warned that the Caspian Sea has been shrinking since the 1990s but not this quickly. 

Russia, Kazakhstan, Turkmenistan, Iran and Azerbaijan border the Caspian Sea, which lies at the centre of a series of transport corridors that ultimately connect East Asia with Europe. 

The Caspian Sea also hosts the region’s oil and gas industry and is a wildlife reserve, supporting seals, and migratory birds. The report showed how vast areas of the northern section of the Caspian Sea could dry up, with Atyrau in Kazakhstan effectively being stranded hundreds of kilometres from the shore.

Central Asia’s reputation for ecological disasters is already secure with the shrinking of the Aral Sea, which is shared by Uzbekistan and Kazakhstan. It shrank in the 1960s and 1970s to half its original size because of Soviet schemes to siphon off its tributaries to irrigate cotton fields.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021