• KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
  • KGS/USD = 0.01184 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.09395 -0.21%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 -0.28%
03 October 2024

Viewing results 1 - 6 of 9

Kyrgyzstan Seeks Crude Oil Supplies from Azerbaijan

At a meeting with Azerbaijan’s Energy Minister Parviz Shahbazov, his counterpart from Kyrgyzstan, Taalaibek Ibrayev, proposed signing a long-term contract to supply Azeri crude oil to Kyrgyzstan. The bilateral meeting took place on September 16 in Bishkek, on the sidelines of the 4th meeting of energy ministers of the Organization of Turkic States (Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan). Representatives of Turkmenistan and Hungary attended as observers. The Azeri Energy Minister expressed its readiness for cooperation, and proposed establishing a special working group to organize oil supplies. Ibrayev also proposed that Azerbaijan participate in hydropower and renewable energy projects in Kyrgyzstan, and consider preferential financing of $2 million from the Azerbaijan-Kyrgyzstan Development Fund for the purchase and installation of charging devices for electric vehicles in Kyrgyzstan. Today, Kyrgyzstan’s local capacity for refining crude oil and producing motor fuel covers about 5% of domestic demand, with the rest imported from Russia. During Kyrgyz President Sadyr Japarov’s visit to oil-rich Azerbaijan earlier this year, negotiations were held with the Azeri state oil company, SOCAR, on Azerbaijani oil supplies to Kyrgyzstan’s Junda refinery. Energy Minister Ibrayev commented that the Junda oil refinery requires more than 1 million tons of crude oil annually for refining. On August 30, the refinery reopened in the town of Kara-Balta, about 100 kilometers west of Bishkek. Late in March, the refinery completed a significant overhaul and plans to reach its total annual capacity of processing 800,000 tons of crude oil by the end of this year.

Uzbekistan Begins Processing Afghan Crude to Alleviate Energy Shortages

Uzbekistan’s Saneg oil refining company has begun processing Afghan crude oil at its Fergana refinery, to help ease Afghanistan’s energy shortages under Taliban rule. The first shipment of oil was transported by rail from the Hairatan terminal in Afghanistan's northern Balkh province. Afghanistan faces a significant energy crisis due to supply issues from Iran and Turkmenistan. The Taliban wants to restart domestic oil production to reduce its dependence on imports. Afghan crude oil, mainly extracted from the Amu Darya basin, is not fully used because Afghanistan needs more facilities to refine it. However, fortunately for Afghanistan, its neighboring countries to the north and west are willing and capable of supplying electricity, gas, and light oil products so that the country can, to some extent, improve its energy security. The refining agreement represents one of the first cross-border collaborations for Afghan crude oil, despite the historically complex relations between Afghanistan and Uzbekistan. Other countries, such as Russia and Kazakhstan, are looking at similar opportunities to gain market share and indirectly support the Afghan economy. This shows how the Central Asian countries are changing their strategies while Afghanistan is isolated internationally. For example, at the end of April this year, a delegation from Kazakhstan paid an official visit to Kabul, where a meeting of the Kazakh and Afghan businesses and an exhibition of Kazakh products were held. The visit to Kabul shows Astana’s intention of using trade to improve Kazakhstan’s relations with the new Afghan government. Saneg’s initiative to process Afghan oil is part of Uzbekistan's strategy to boost its refining and seize business opportunities in a volatile region. Exporting refined products to Afghanistan could bring extra revenue, and help a struggling neighbor. However, political instability and fragile relations may limit the long-term benefits. Companies from Russia are also interested in similar deals. Uzbekistan has also signed five agreements on mining projects in Afghanistan. These agreements, worth $1.15 billion, were part of a larger package of 35 agreements and memoranda of understanding signed between the two countries. These agreements increased Uzbekistan’s investment in Afghanistan by more than $2.5 billion.

Tajikistan Proposes Launching Oil Refinery With Russian Tatneft

Tajikistan wants to establish cooperation with Russia's Tatneft to open an oil refinery in the Dangara free economic zone, in Tajikistan's Khatlon region. This was announced by the country’s Minister of Industry and New Technologies, Sherali Kabir, during a recent investment forum in Dushanbe between Tajik and Russian companies. “One of the most important issues that we see in the development between our countries is the improvement of our production capacities, including the production of fuel and lubricants, cooperation, and the creation of new mechanisms. If we launch this enterprise together with Tatneft, we can achieve great progress in this regard.” Kabir said. It is noted that this will help Tatneft enter the markets of Afghanistan and Pakistan. “As was said, up to 30% of Tatneft’s raw materials are exported. Bring them here (Tajikistan), process them — and imagine what a huge market the company could open up for itself. 40 million people in Afghanistan, and over 230 million in Pakistan,” Timur Yoribek, Head of the International Relations Department of the Ministry of Industry of Tajikistan, commented. According to him, Tajikistan has ideal logistics routes for this — seven bridges leading to Afghanistan, and the shortest links to the Pakistani seaports. Construction of the Dangara oil refinery began in 2014 and was completed in 2018. The plant's planned capacity is 1.2 million tons of oil per year, but the commissioning has been delayed due to a shortage of raw materials. Tajikistan produces a small amount of oil, which is not enough to supply the refineries.

New Concept Announced for the Development of Oil Refining in Kazakhstan

The Ministry of Energy of Kazakhstan has drafted a new Concept for the development of the country’s oil refining industry until 2050. The aim of the initiative is to ensure the country's energy security including a stable balance of production, consumption, and reserves in the domestic market of petroleum products, as well as a 100% supply of the domestic market’s oil products and their future exports. The previous medium-term Comprehensive Oil-Refining Development Plan provided for the reconstruction and modernization of the capacities of the Atyrau, Pavlodar and Shymkent refineries from 14 million to 17 million tons of motor fuel per year for the domestic market. The new Concept defines the basic principles and target indicators for the sustainable development of the oil refining industry until 2050, taking into account regional and global challenges, in order to provide the economy with domestic petroleum products, export domestic petroleum products, and increase the industry’s contribution to the country’s GDP. The ultimate goal of the Concept is to ensure the competitiveness of Kazakhstan’s refineries through sustainable and advanced development, attracting investments and concentrating resources in response to modern regional and global challenges.    

Uzbekneftegaz Partners With Canadian Firm Condor Energies

JSC Uzbekneftegaz and Canadian energy company Condor Energies have agreed to jointly increase output at eight producing gas condensate fields in Uzbekistan. Condor says it will use the same advanced technologies and operational methods used in Western Canada. Work is planned to start in the first quarter of 2024 after the project's feasibility study is complete. The agreement will make Condor Uzbekneftegaz's first Western strategic operating partner. That not only ensures an increase in the country's domestic natural gas supply, but will also reduce carbon dioxide emissions. The work is expected to provide a significant number of jobs in Uzbekistan. Condor Energies intends to earn a percentage of net profits by assuming all project costs. Despite the fact that Uzbekistan is introducing green technologies into its energy-production mix, natural gas remains the key source of fuel in the republic. The country's total gas reserves are estimated at almost 1.9 trillion cubic meters. Uzbekistan has 296 oil & gas fields, 122 of which belong to Uzbekneftegaz. Gas reserves in them amount to 933 billion cubic meters. The largest of these is the Mubarak field, where 33% of the aforementioned volume of gas, or about 305 billion cubic meters, is concentrated. In 2023 the country's gas production fell 9.6% year-on-year to 46.7 billion cubic meters. Uzbekistan has thus flipped from being a net exporter to a net importer of natural gas. The republic now buys gas from Turkmenistan and Russia.

Kazakhstan Freezes Transit Cost of Russian Oil To China

KazTransOil JSC, Kazakhstan’s national oil pipeline operator, on January 26th said it will freeze the cost of transiting Russian oil to China until 2034. Until December 31st 2033 the cost of transporting Russian oil to China through the territory of Kazakhstan will amount to $15 per ton (excluding VAT), the company said.   KazTransOil also said it has extended until December 31st 2033 its contract with Russia’s Rosneft oil company for the transportation of Russian oil through Kazakhstan to China. From 2014-2023, KazTransOil transported 91 million tons of Russian oil to China along the Atasu–Alashankou oil pipeline, which is part of the Kazakhstan-China main oil pipeline system and belongs to Kazakhstan-China Pipeline LLP, a joint venture of KazTransOil JSC (50%) and China National Oil and Gas Exploration and Development Company Ltd (50%). The design capacity of the Atasu–Alashankou pipeline is 20 million tons of oil per year. Russia has been seeking to increase its oil exports to China after western sanctions were imposed on its exports over its invasion of Ukraine.