MARCH 13 2015 (The Bulletin) – Pakistan wants to increase energy cooperation with Uzbekistan, media reported, a potential boost for the Uzbek oil and gas sector.
Western energy companies such as London-listed Tethys Petroleum are gradually exiting Uzbekistan because of a worsening business environment.
Pakistan is also lobbying for Uzbekistan to participate in the TAPI pipeline project that would bring Turkmen gas to India, passing through Afghanistan and Pakistan.
Uzbekneftegaz, the national oil and gas company in Uzbekistan, annually produces 63b cubic metres (bcm) of gas mostly for domestic consumption.
The government has a plan to increase both production and exports and to reduce wasteful use by 2020. The aim to export up to 16bcm by 2020 is well short of Uzbekistan’s regional commitments.
Notwithstanding the declining demand in Russia for Uzbek gas, China is asking for 10bcm and Pakistan’s demands might just be impossible to meet.
Furthermore, the TAPI project has proved to be a difficult one to realise and the timeline for its completion in 2017 is still under review.
ENDS
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(News report from Issue No. 223, published on March 18 2015)