Sunday, May 29, 2011

Eurasian news this week

China-Central Asia Gas Pipeline - The Central Asia Gas Pipeline has delivered 10 billion cubic meters of natural gas to China as of Saturday since becoming operation in December 2009, according to local authorities. The pipeline, traversing 1,833 km, brings natural gas from Turkmenistan through Uzbekistan and Kazakhstan to Horgos of Xinjiang Uygur Autonomous Region in northwest China, said Wang Hongxin with Horgos Customs. The gas is supplied to 14 provinces, autonomous regions, municipalities and special administrative regions, including Shanghai and Hong Kong, Wang said.

China-Kazakhstan - Opposition activists in Kazakhstan called on the government on Saturday to stop Chinese investment in the country's natural resources, saying Beijing could be preparing a land grab in Central Asia. Several hundred people gathered in Almaty, the country's largest city, for an officially sanctioned rally against Chinese expansion into Kazakhstan. The organizers of the rally worried about the growing presence of China in Kazakhstan's economy in three ways: investing in oil and gas, loans to Kazakhstan and the land problem. But the kazakh government dismissed all the three concerns.

Chinese companies control 22.5 percent of Kazakhstan's oil output, but the government forecasts this will decline to 19.3 percent in 2015 and 8.9 percent by 2020. With regard to China's "raw" loans, Kazakhstan is not a priority country in the list of investment projects in China. China invests much more in Latin American countries (47 billion), Africa ($ 40 billion), Russia (25 billion dollars). "The direct investment of China in Kazakhstan in 2010 amounted to five billion dollars, or less than four percent of total foreign investments in Kazakhstan", - said in a paper prepared by the Government. Of special note is the land question. An official government statement said that "rumors" about the possible transfer of one million hectares of land on lease to China are contrary to the law and do not correspond to reality.

China-Russia - Russia's top crude producer, Rosneft and China will discuss pricing of Russian oil deliveries at an economic conference on June 16-18. Russia's Transneft, which started oil supplies to China via the first stage of the Pacific pipeline in January, has claimed that CNPC underpaid for the crude supplies. To the contrary, China side claimed that Russia unilaterally raised additional tariffs. China said Thursday that disagreements over oil prices between Chinese and Russian energy companies will be properly resolved through friendly dialogues. "Energy cooperation between China and Russia is mutually beneficial, " said Foreign Ministry spokeswoman Jiang Yu at a regular news briefing. Last week, Russia's top energy official Igor Sechin said that the oil talks with Beijing will facilitate Russia's top natural gas producer Gazprom's efforts to secure a gas pricing agreement with China in June. The Rosneft spokesman also said that the company will sign the exploration and development memorandum with Japan, smarting from nuclear crisis.

Uzbekistan-India - India took another step towards economic and strategic penetration in Central Asia with the visit to New Delhi last week of Uzbekistan's President Islom Karimov, who signed an agreement that could lead to India's ONGC Videsh Ltd (OVL) prospecting for oil and gas inside its neighbor's territory in cooperation with Uzbekneftegaz. In meetings with Indian Prime Minister Manmohan Singh, both sides agreed to raise the level of bilateral relations to a ''long-term strategic partnership''. The heads of state signed 34 accords across a wide range of issues that, alongside the hydrocarbon sector, included cooperation in pharmaceuticals and information technology. In the last few years, India has thus become one of the Central Asian counterbalances against Sino-Russian hegemony. Nor is Uzbekistan alone in deepening its relations with the subcontinent. Given India's need to increase its energy imports, it is no surprise that a significant economic axis for its newly developing cooperation with Central Asia is in the oil and gas sector.

Turkmenistan - Turkmenistan might have the world’s second largest natural-gas field, Lenta.ru reported May 25, quoting the British auditing firm Gaffney, Cline & Associates (GCA). GCA is planning to submit a revised audit in mid-June to Turkmen President Gurbanguly Berdymukhamedov saying South Yolotan is second only to Qatar’s South Pars field. Turkmenistan reportedly raised its estimate of South Yolotan’s gas holdings to 21 trillion cubic m (tcm). In 2008, GCA estimated South Yolotan could contain 4 to 14 tcm.


Articles referred to in this post:

"中亚天然气管道累计向我国输气100亿立方米" (China-Central Asia Gas Pipeline Delivers 10 Billion Cubic Meters of Gas to China)

"Туркменистан возможно имеет второе крупнейшее в мире газовое месторождение" (Turkmenistan might have world’s 2nd largest gas field)

"Kazakh opposition calls for halt to China expansion"

"Правительство Казахстана назвало разговоры о «китайской экспансии» беспочвенными слухами" (The government of Kazakhstan called talk of a "Chinese expansion" groundless rumors)

"Казахстан уменьшит долю китайских компаний в добыче нефти и газа" (Kazakhstan will reduce the share of Chinese companies in its oil and gas extraction)

"Узбекистан и Индия подписали совместное заявление о стратегическом партнерстве" (Uzbekistan and India signed a joint declaration on strategic partnership)

"Интерес Индии к Центральной Азии становится все более конкретным" (India's interest in Central Asia is becoming more specific)

"中俄双方均希望尽快解决能源分歧" (China and Russia are hoping to solve the energy disputes)

"中俄油气谈判延期:双方分歧待解" (Sino-Russian oil and gas negotiations delayed: disputes between the two sides to be solved)

"Rosneft, China to discuss oil pricing in mid-June"

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