UZBEKISTAN - Part 2 - Oil & Gas Exports.
To meet the requirements of its three oil refineries, which have a combined capacity of 224,000 b/d, Uzbekistan imports about 82,000 b/d of crude oil from Russia. It also imports some 6,000 b/d of refined Russian oil products.
Exports of refined oil products and natural gas exports depend entirely on the Russian system of pipelines, 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. But from 2005 and the subsequent years, some of natural gas being purchased by the Russian gas giant Gazprom may reach non-CIS markets.
The LPG exports are moving from one of the Shurtan gas fields which is the site of the largest petrochemical and gas processing complex in Uzbekistan and the biggest of its kind in the CIS. On stream since mid-2001, the gas plant has the capacity to produce 137,000 tons/year of LPSs/NGLs. The bigger complex is being fed with gas from the Shurtan fields.
The plant has gas separation and treatment units, with the capacity to process up to 4.5 BCM of raw gas per annum. The plant's units also can produce 4.2 BCM per annum of dry natural gas, 130,000 tons/year of light condensate, and 4,000 tons/year of sulphur (see Downstream Trends No. 16).
LPG exports are moving to neighbouring CIS countries and to Iran. Shipments to Iran began in mid-June 2001 at the rate of 2,000-4,000 tons per month. A long-term contract has been signed between the state-owned UzbekNefteGaz (UNG) and National Iranian Gas Co. (NIGC).
Most of the exports of natural gas this year are moving to Russia, with less than 1 BCM going to Kazakhstan. The other importers of Uzbek natural gas are Kyrghyzstan, Tadjikistan and Ukraine.
Uzbekistan is the second biggest gas producer in the CIS next to Russia, with output in 2004 to hit a record of 60 BCM (see Gas Market Trends 16). Local consumption of natural gas this year is expected to amount to 47 BCM.
President Islam Karimov is the highest decision maker for the petroleum sector and for all other matters in Uzbekistan (see Downstream Trends).
Uzbekistan is a transit point for Turkmenistan's gas exports to Russia, which are pumped through Kazakhstan. The gas enters the Russian territory at the Alexandrov Gay point, the key to the Central Asia-Central Russia line.
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|Comment:||UZBEKISTAN - Part 2 - Oil & Gas Exports.|
|Publication:||APS Review Oil Market Trends|
|Date:||Oct 25, 2004|
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