Uzbekistan ups gas condensate supply from Turkmenistan

By Azernews

By Kamila Aliyeva

Uzbekistan will increase the supply of gas condensate from Turkmenistan to load the Bukhara oil refinery, Turkmenneft state concern reported citing Uzbekneftegaz National Holding Company.

A number of documents on cooperation in the economic and energy spheres, including an agreement between Uzbekneftegaz and Turkmennebit (Turkmenneft) were signed during the visit of Uzbekistan’s President Shavkat Mirziyoyev to Turkmenistan in March,.

The document, in particular, envisages the possibility of joint development of deposits on the Caspian Sea shelf.

The companies agreed to cooperate in joint exploration and development of fields in the Turkmen sector of the Caspian Sea on the basis of the production sharing agreement (PSA).

It will be the first time in its history when Uzbekneftegaz will conduct geological exploration work abroad.

Gas condensate will be supplied from the Kyyanly field in the Turkmen sector of the Caspian Sea, where Petronas operates under PSA conditions.

Shipment of gas condensate already goes by sea, from Kiyanly to Kenar, to the tank farm of the Turkmenbashi complex that includes two refineries - one in the city of Turkmenbashy and the other one in the city of Seydi.

The issue of reducing the cost of raw materials supplied to the Bukhara refinery is also being considered. Turkmenistan promised to build the missing section of the railway with a length of 30 km, which will simplify and reduce the cost of logistics, excluding transportation by sea.

Uzbekneftegaz is the national operator of the oil and gas complex of Uzbekistan, uniting more than 200 oil and gas enterprises.

According to British Petroleum (BP), oil production decreased by 3.1 percent up to 2.6 million tons and natural gas production increased by 8.4 percent up to 62.8 billion cubic meters in Uzbekistan in 2016 compared to 2015.

According to BP, the export of Uzbek gas amounted to 11.4 billion cubic meters, including 5.6 billion cubic meters to Russia, 4.3 billion cubic meters to China, and 1.5 billion cubic meters to Kazakhstan in 2016.

Turkmenistan’s reserves in the shelf of the Caspian Sea are estimated at 12 billion tons of oil and 6.5 trillion cubic meters of gas, excluding the already contracted blocks.