Energy - The Times Of Central Asia

Viewing results 1 - 6 of 305

Uzbekistan Planning to Abandon State Regulation of Coal Prices

A decision to end Uzbekistan's price caps on coal has been made against the background of rising costs for electricity. To date, hard coal in the country is a social commodity, which is sold to the population at fixed prices. Currently, coal is sold under direct contracts to the population, state organizations and thermal power plants, and because it's included in the list of socially important goods, its price is regulated by the state. Wholesale and retail prices for coal are considered and approved by the Interdepartmental Commission on Tariffs at least once a year (valid through June 1). Retail coal is sold to the population through coal warehouses run by the state company "Kumir ta'minot". The Ministry of Energy, together with other agencies, has a mandate to make proposals for the formulation of wholesale and retail prices "based on market principles" within a month. In 2023 Uzbekistan's coal production rose to 6.19 million tons, up 15.5% from the previous year. However, imports also increased -- 3.1 million tons were purchased from Kazakhstan alone. At the beginning of this year, Uzbek president Shavkat Mirziyoyev instructed domestic mining companies to increase coal production by 22%, taking into account the needs of the population, social sphere and industries. According to experts, the potential of the coal industry is not being properly utilized. At the same time, coal combustion is the main air pollutant in Uzbekistan, especially in Tashkent, which has recently taken a leading position on the list of cities with the worst air quality. During the fall and winter period, greenhouses on the outskirts and industrial enterprises of the Uzbek capital massively use coal and fuel oil as heating and power generation fuel. This has led to a sharp deterioration of air quality indicators and an increase in respiratory diseases among citizens.

Investments Energy Central Asia Economy Uzbekistan Social

Uzbekistan to Raise Energy Prices for First Time in Five Years

Electricity and natural gas tariffs in Uzbekistan will increase from May 1, and social consumption quotas will also be established. The price increase will be the first since August 2019. The quota for electricity use was defined up to 200 kWh per month, for gas -- from March to October -- up to 100 cubic meters, and from November to February, up to 500 cubic meters. The authorities attribute the price increase to inflation, which has cumulatively reached 66% over the past five years. At the same time, most energy companies are suffering severe losses, with state company JSC Thermal Power Plants reporting losses of 1.6 trillion sum ($125 million). The Uzbek government has announced assistance to the vulnerable in the form of raising the official poverty line, pensions and allowances. "About $80 million has been allocated from the state budget to support low-income families. These funds have clear sources and will be allocated in a timely manner and without any delays," Economy and Finance Ministry spokesman Khurshed Mustafayev said.

Energy

Kyrgyz PM Zhaparov In U.S. For Talks With Energy Investors

Kyrgyzstan's prime minister Akylbek Zhaparov is in the United States this week, and will meet with potential investors as Kyrgyzstan looks to grow its energy sector. Zhaparov will meet with the heads of the World Bank, International Monetary Fund, the U.S. Agency for International Development (USAID), the U.S.-Kyrgyz Chamber of Commerce, Asian Infrastructure Investment Bank, Asian Development Bank and the European Investment Bank. He will also meet with representatives of leading tech corporations, according to the Kyrgyz government's press service. Kyrgyzstan's largest energy project is the construction of a hydroelectric power plant on the Naryn River, for which the World Bank has allocated a soft loan of $5 million for a feasibility study. Kyrgyz authorities are also negotiating a $500 million loan to construct the hydropower plant. In total, according to current estimates, the project will cost about $5 billion. The Times of Central Asia has previously reported that the Kyrgyz Chamber of Commerce and Industry intends to open representative offices in the U.S.

Investments Energy Oil & Gas Uzbekistan

Uzbekistan Aims to Become One of World’s Largest Producers of Olefins

Uzbekistan's largest private oil and gas company, Sanoat Energetika Guruhi (Saneg) will build a gas chemical plant to produce olefins from methanol. The work will be done in partnership with the Chinese state-owned energy giant, Sinopec. The complex will utilize natural gas from the Mubarek fields. Olefins are raw petrochemical materials used for a range of polymer products, such as plastics and films. The $3.3 billion plant will be able to process 1.3 billion cubic meters of natural gas by 2026. About 44% of the production will be exported, mainly to China and Turkey. In addition, the project will make it possible to produce value-added products from natural gas rather than simply burning it for energy or exporting it. The construction of the complex will also stimulate the development of related industries. The Karakul free economic zone in the southeastern Bukhara region will house plants producing textiles, carpets, footwear, plastic pipes and fittings, and other polymer products. "Uzbekistan's gas-chemical complex plans to produce 300,000 tons of polyethylene terephthalate annually, 350,000 tons of polypropylene, and other materials. This is expected to reduce the country's imports of polymers by $500 million a year and attract $350 million a year from their exports," said Bakhodyr Khafizov, director of the Karakul free economic zone. Saneg representatives said that, according to a marketing study, annual polymer consumption in Uzbekistan is now 5.5 kilograms per capita, far below that of other developing economy peers. For example, that figure in Turkey is 23 kilograms, meaning that the Uzbek domestic market shows significant room for expansion. However, there may be problems with exporting polymers abroad, as Uzbekistan has no direct access to the sea. In this regard, production will require additional investments taking into account overland logistics.

Central Asia Legislation Energy Hydro power Kyrgyzstan

Kyrgyzstan’s New Tariff Policy Aim to Solve Problems in Energy Sector

Kyrgyzstan's minister of economy Daniyar Amangeldiev has told a press conference in Bishkek about his vision for the country's energy sector. A new tariff pricing policy has been presented to the Kyrgyz parliament, and will be adopted in May this year. According to Amangeldiev, the new electricity tariff policy will allow for new capacity to be introduced, and for the country to reduce the country's electricity deficit year by year until the country's power-demand needs are met. Electricity prices will rise by 10.8% as early as May 2024, and taking into account inflation, this increase will be permanent. Amangeldiev said that it will now be much easier to obtain permission from the authorities to build energy facilities in the country. Measures have also been taken to make it easier for investors to invest in Kyrgyzstan's energy sector. "With its adoption (the new law on tariff policy), those capacities that are planned will be introduced, and accordingly, every year we will reduce the shortage of electricity to fully meet the needs of the country, and possibly [lead to] electricity export," he commented, adding that this year in Kyrgyzstan developers have started 10 small hydropower plants (HPPs). Earlier, Kyrgyz president Sadyr Zhaparov said that in addition to the construction of large energy facilities, it's necessary to build small HPPs. In 2022, the World Bank allocated $50 million to Kyrgyzstan to modernize its energy infrastructure -- upgrading transformers, power lines and installing smart meters. A year later, the bank provided another $80 million in concessional loans (at below-market lending rates) to improve the power grid and support small-scale power generation. Last fall, the World Bank allocated $5 million to the republic for a feasibility study of the project of a new large HPP called Kambarata-1.

European Union Economy Oil & Gas Central Asia Kazakhstan Russia Energy

Kazakh-Owned Rompetrol, On Brink Of Collapse, Appeals To Tokayev

According to Romanian news portal gandul.ro, Rompetrol, which operates in oil refining, petrochemicals, and distribution in parts of Eastern Europe, is close to collapse. The stated reason is that Rompetrol top management -- which includes representatives of Kazakhstan's state energy company KazMunayGas (KMG), the majority owner of Rompetrol -- prioritize personal interests over the economic good of the company. The allegations are serious. KMG International, a group owned by Kazakhstan's national oil and gas company KazMunayGas, acquired the Rompetrol brand in 2007, strengthening its position as a key player in the Black Sea and Mediterranean region. It currently owns 55% of Rompetrol, with Romania's Ministry of Energy controlling just under 45%. The Kazakhstani company is accused of assisting Russia, which itself is trying to avoid sanctions imposed by the European Union (EU). Gandul.ro claims that it's possible to bring oil from Russia to be refined in Romania despite the embargo on Russian crude. Rompetrol CEO Ilyas Kuldzhanov has Russian citizenship, although he also registered Kazakh citizenship in Romania's National Trade Register to avoid possible EU sanctions. Gandul.ro published an open letter penned by some of the company's employees, which they sent to the Kazakh Government. The letter contains the following passages: "Dear Sirs, we are writing to you regarding current issues related to Rompetrol. At the beginning of this message, we apologize for using Google Translate to translate from Romanian to Russian and for remaining anonymous. We decided to remain anonymous because we fear reprisals from KMG management. We want to draw attention to the growing problems inside Rompetrol, because no one is interested in the future of the company. The company needs a radical change of management and new people with different perspectives at all levels, from the board of directors to the top management, with a vision in line with the goals. In terms of management, first of all we should mention Ilyas Kuldzhanov, an extremely incompetent person with no experience in managing large companies, Baurzhan Nurgaliyev (Operations Director), who until recently ran a company selling elevators in Astana, Saken Shoshanov, Baurzhan Nugumanov and other members of management. Appointments to management positions are made on the basis of the ethnic origin of the clan. Most of the new managers in Romania and Kazakhstan have been hired without any competition or selection, and have no experience or knowledge of how the corporation should operate. Note the price of oil and how diesel fuel was purchased in 2023 due to an emergency equipment shutdown at the Petromidia refinery. Why is this equipment not repairable? Why do accidents and explosions continue to occur? Because Rompetrol management is looking for contractors willing to pay commissions. We would like to inform you that similar messages will be sent to the Romanian authorities because the situation is critical." Rompetrol employees also create a disastrous picture of the company's behavior. In the letter they ask Tokayev to check how components and electricity are purchased for the plant -- questions that refer to expenditures of tens of millions...