Tag Archives: Uzbekistan

Uzbekistan to modernise pipelines

MARCH 18 2016 (The Conway Bulletin) – Uzbekistan’s state-owned gas firm Uztransgaz will invest $506m modernising its pipeline system. Uztransgaz will spend around $266m building a new section of the 10b cubic metres pipeline from the Ferghana valley to Tashkent which was damaged last year after an explosion. Uztransgaz also said it will modernise one of its compressor stations at the Central Asia-Centre export pipeline and build a new one for a total cost of $215m.

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(News report from Issue No. 273, published on March 25 2016)

Uzbek health sector receives funding

MARCH 15 2016 (The Conway Bulletin) – The Kuwait Fund for Arab Development said it had agreed to give a $24m loan to finance buying urology equipment for hospitals in Uzbekistan. The Kuwait Fund is sponsored by the Kuwaiti government. Kuwait has, over the past couple of years, developed more interest in Central Asia.

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(News report from Issue No. 272, published on March 18 2016)

Uzbek-Chinese JV plans to start production

MARCH 11 2016 (The Conway Bulletin) – Uzbek-Chinese joint venture New Silk Road Oil & Gas Company Ltd plans to start production at the Karakul gas condensate fields in Uzbekistan’s Bukhara region by the end of the year. The leadership of the Uzbekneftegaz National Holding Company, which is a co-founder of the joint venture told Trend it will award drilling tenders in late April-early May 2016.

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(News report from Issue No. 272, published on March 18 2016)

Uzbekistan raises gas prices

MARCH 17 2016 (The Conway Bulletin) – Uzbekistan has approved gas price increases of 8.2% for its population from April 1, the second price rise in six months.

Utility prices across the region have been increasing over the past couple of years as local currencies have devalued and overall inflation has accelerated.

But they are still sensitive, emotive issues.

Gas and electricity have always been subsidised in the former Soviet Union, so people generally resent increases.

In October, the authorities raised gas prices by 7.2%. This time, other utilities will also rise in Uzbekistan, the government said.

The price of cold water will rise by 5.7%, central heating and hot water by 9% and electricity by 8.9%. Last year in Armenia, proposed electricity price rises triggered street demonstrations that forced the government to back down from increasing prices.

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(News report from Issue No. 272, published on March 18 2016)

Uzbekistan to produce new Chevrolet

MARCH 11 2016 (The Conway Bulletin) – Uzavtosanoat, part-owner of the GM Uzbekistan joint venture, said the company will start production of Chevrolet Aveo in May. GM Uzbekistan, formerly UzDaewooAuto, produces several models of cars for the US manufacturer GM. The company said the Aveo will help its market share in the former Soviet Union and, possibly, open new export avenues in the Middle East and Africa.

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(News report from Issue No. 272, published on March 18 2016)

Uzbek scientists find T-Rex fossils

MARCH 14 2016 (The Conway Bulletin) – Scientists said they had found fossils belonging to an earlier cousin of the T-Rex dinosaur in Uzbekistan’s Kyzylkum desert. The discovery of the fossils of a smaller version of T-Rex were hailed as a major scientific breakthrough.

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(News report from Issue No. 272, published on March 18 2016)

Uzbek leader creates new ministry

MARCH 4 2016 (The Conway Bulletin) – Uzbek president Islam Karimov officially appointed Aziz Abdukhakimov as minister for labour, a new ministry formed out of the ministry for labour and social protection. Mr Abdukhakimov had previously been the minister for labour and social protection. It is unclear why Mr Karimov wanted to change the name of the ministry.

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(News report from Issue No. 271, published on March 11 2016)

Sasol considers project cut in Uzbekistan

MARCH 9 2016 (The Conway Bulletin) – Due to sustained low oil prices, South Africa’s Sasol is considering dropping its gas-to-liquids project in Uzbekistan. In Uzbekistan, Sasol operates jointly with Malaysia’s Petronas and state-owned Uzbekneftegaz. The project cost stands at around $5.6b. Sasol said it will make a final decision on the project in the first half of the year.

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(News report from Issue No. 271, published on March 11 2016)

Uzbekistan plans to invest $249m in its giant gas processing plant

MARCH 4 2016 (The Conway Bulletin) – The Uzbek government wants to invest around $294m to increase production and efficiencies in its gas sector, mainly to boost the Ustyurt chemical plant.

State-owned Uzbekneftegaz co- owns the Ustyurt chemical plant with South Korea’s Lotte Chemicals. The $4.1b project was opened in October and is considered key to Uzbekistan’s future economic plans.

The Uzbek government will directly invest around $236m in the Sharkiy Berdakh gas fields near the Aral Sea to complete the new booster compressor station it is building with Ukrainian firm Sumy. The state-run Fund for Reconstruction and Development will provide an additional $58m through a loan.

Uzbekistan is in the top 15 gas producing countries in the world and sees it as the bedrock of its future economic plans. It’s a gamble, though. Uzbekistan and its partners have committed to large energy projects, with fixed up-front costs, as energy prices continue to bounce along record lows.

If it all goes to plan, the project will be completed in November 2016 and output at the gas fields will be increased by 15% to around 2b cubic metres annually. Improved infrastructure will allow Sharkiy Berdakh to supply the Ustyurt plant, located around 100km away in the remote Karakalpakstan region of western Uzbekistan.

The Ustyurt chemical complex has a processing capacity of 4.5b cubic metres per year. It has been designed to turn Uzbekistan into a gas processing hub for Central Asia and also Russia.

Uzbekistan is also looking to invest in its largest chemical complex, Navoiazot. The government issued a $393m loan last week to extend its nitrogen and ammonia facilities.

The Uzbek government has put 49% of Navoiazot, in central Uzbekistan, up for sale to foreign investors in a recent drive to privatise state assets to raise funds to ward off a worsening economic slowdown.

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(News report from Issue No. 271, published on March 11 2016)

Moody’s downgrades Uzbek Khamkorbank

FEB. 26 2016 (The Conway Bulletin) – Rating agency Moody’s cut Khamkorbank’s long-term local currency deposit rating to B2 from B1. In February, the Uzbek Central Bank suspended the bank’s licence to trade foreign currencies for six months. The World Bank’s IFC and the Netherlands’ state-owned FMO own stakes in Khamkorbank.

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(News report from Issue No. 270, published on March 4 2016)