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UZBEKISTAN - Part 2 - Big Oil & Gas Exports Depend On 'Free' P/Ls.

Landlocked Uzbekistan exports small quantities of crude oil and refined petroleum products. Exports of natural gas are larger. Oil and gas exports at present depend entirely on the Russian pipelines system, built many years ago as part of a centralised Soviet energy sector.

Exports of oil and gas are limited to fellow members of the Commonwealth of Independent States (CIS). This is because the Russians do not allow Uzbek exports to pass through their system to non-CIS markets.

Oil exports are averaging about 55,000 b/d of crude oil and refined products, up from 43,000 b/d in 1999, with the country importing a small volume of oil products. Gas exports this year are set to amount to 6.5 BCM with 5 BCM going to Russia and 1.5 BCM taken by Kazakhstan. Uzbekistan is importing varying quantities of gas from Turkmenistan.

Uzbekistan is a transit point for Turkmenistan's gas exports to Russia, which are pumped through Kazakhstan and enter the Russian territory at the Alexandrov Gay, the pipeline hub on the Russo-Kazakh border. In recent weeks, Russia has been importing more gas from Turkmenistan through this route and via Uzbekistan.

Any major increase in Uzbek oil or gas exports in the future will depend on pipelines bypassing the Russian system. One of the many options being discussed is the US proposal for oil and gas pipelines to be built under the Caspian Sea to Azerbaijan and from there for overland pipelines to pass through Turkey.

These pipelines, as the US proposes, would link the three Central Asian states - Uzbekistan, Turkmenistan and Kazakhstan - as well as Azerbaijan to Turkey and the Western markets.

There is also a new Japanese proposal for a 2 million b/d Caspian pipeline for export to run through Iranian territory to Iran's Persian Gulf port of Shah Bahar. The crude oil is to move to the Asian markets.

This is proposed to take crude oils from onshore and offshore fields in Azerbaijan, the Russian and Kazakh sectors of the Caspian Sea, Kazakhstan, Turkmenistan and Uzbekistan. The proposal is to be made for the first time at the 14th Annual APS Conference of Oct. 9-11 in Nicosia.
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Publication:APS Review Oil Market Trends
Date:Oct 2, 2000
Previous Article:Why Oil Price Kept Rising Before Clinton Intervened With The SPR Move.
Next Article:UZBEKISTAN - The National Priorities.

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