Monday, April 11, 2011

Central Asian Energy News This Week

Astana - Kazakhstan is tightening control over its own fuel resources.

The energy-rich state plans to export its gas only through a national operator, Kazkh Vice-Minister of Oil and Gas Lyazzat Kiinov said on Tuesday. "Instead they will be selling the gas to the national operator at a wholesale price and the national operator will export it." According to Kiinov, the operator's main objective will be to meet the internal demand of the country and then to sell the surplus abroad. The bill about the establishment of a single gas export operator will be submitted to the government in May.

In terms of oil, Kazakhstan plans to terminate the contract under which Russia will use Taysogan as military ground (in Atyrau region, west of the country) because oil was found there, said Kazakhstan's Minister of Oil and Gas Sauat Mynbayev. The Minister explained that Taysogane, which is located within the territory allocated to the oil companies, oil field was found, and therefore the Kazakhs are negotiating with Russians. He explained that "if we will develop and produce oil in this area, we will offer the Russian Federation another site for Russian military use."

Also, Kazakhstan is considering a three-year halt to work on the main phase of the super-giant Kashagan oil field development, as international oil companies Royal Dutch Shell and ExxonMobil fight to convince the country's oil ministry to back a simplified project, which would reduce their costs by $18 billion to $50 billion. The Kazakhs are considering shelving this new simplified design, and keeping the field producing at its initial rate of 375,000 barrels per day (bpd) for at least three years. Over the next three months, the North Caspian Operating Company (NCOC) consortium will present their model of how oil will flow as it is produced, after which the Kazakhs will make a final decision on the freeze.

Ashgabat - Turkmenistan is making efforts to promote the country's energy sector to the world.

Turkmenistan on Monday unveiled a new oil and gas research center in the Capital Ashgabat. The center includes a three-story laboratory to be used by the Turkmengas Oil and Gas Institute, the Oil and Gas Institute Professional Training Center, the state concern TurkmenGeology Exploration Institute as well as other energy-related organizations. On Saturday, the meeting of the joint Turkmen-French working group opened in Paris, where for three days the representatives of Turkmenistan and France will discuss current issues and prospects of the development of bilateral relations in oil and gas industry.

Moreover, state-owned energy company Turkmengaz will host its second International Gas Conference at the end of May in the country’s Avaza tourist zone. The conference will be held May 25-26 and is scheduled to include 500 participants from around the world. "The congress agenda will focus on attracting direct foreign investment into Turkmenistan’s gas industry, diversification of gas transit routes to Europe and Asia, implementation of advanced technologies and techniques as well as international standards in the development of Turkmenistan’s gas resources and the promotion of the country’s gas sector to the world," the conference’s welcoming committee announced in a letter on their website.

Tashkent - With oil and gas accounting for 97% of Uzbekistan’s energy resources, officials are looking for alternatives to create a mix of energy sources. One of the most promising alternatives under development are gas-to-liquid fuels (GTL), derived from natural gas and other gaseous hydrocarbons. Uzbekistan will become the sixth country — the first in the CIS and Europe — to produce GTL fuels, said Uzbeknetftegaz spokeswoman Yelena Kim. Uzbekneftegaz is also considering building a liquefied natural gas (LNG) plant. However, developing alternative hydrocarbon resources requires huge investments in exploration, scientific research, mining and manufacturing. In addition, oil shale reserves in Uzbekistan are estimated at 47 billion tonnes, with the country’s major deposits 600m below the Kyzyl Kum Desert and the Baisun Mountains. Uzbekistan is developing biotechnology to process the shale. However, Uzbekistan can’t afford those projects by itself, and is seeking foreign investment.


Articles referred to in this post:

"Казахстан будет экспортировать газ только через нацоператора" (Kazakhstan will mandate all gas exports go through state operator)

"Казахстан приостановит освоение Кашагана на 3 года" (Kazakhstan considers three-year delay on additional development at Kashagan)

"Казахстан хочет выгнать Россию с полигона Тайсоган, где найдена нефть" (Kazakhstan wants to expel Russia from Taysogan, where oil is found)

"Госконцерн 'Туркменгаз' организует Международный газовый конгресс Туркменистана" (Turkmengaz to host int’l gas conference in May)

"Turkmenistan unveils new oil and gas research center"

"Туркменистан и Франция развивают сотрудничество в нефтегазовой сфере" (Turkmenistan and France develop their cooperation in oil and gas)

"Узбекистан исследует альтернативные виды топлива" (Uzbekistan pursues alternative fuels)

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