Page 9 - FSUOGM Week 39 2019

FSUOGM POLICY FSUOGM
Uzbekistan seeks consultants for pipeline overhaul
UZBEKISTAN
Uzbekistan’s pipeline system is in a state of disrepair.
UZBEKISTAN’S state gas transmission opera- tor Uztransgaz has begun work on an ambitious plan to upgrade its creaking Soviet-era pipeline network.
The company launched a tender on Sep- tember to find international consultants for the project, after securing financing from the Asian Development Bank (ADB). Between 2020 and 2023, it aims to overhaul around 30% of Uzbek- istan’s gas trunklines and compression stations.
The selected consultants will prepare tender documents, engineering, procurement and con- struction (EPC) contracts, arrange and supervise civic work and carry out various other assign- ments. The deadline for expressions of interest (EoIs) in the contest is October 1.
Uztransgaz operates around 13,000km of trunk gas pipelines, many of which were built more than 50 years ago. The poor state of the network means that, even though Uzbekistan produces more gas than it consumes, disruptions in supply are routine, especially in remote areas. According to the ADB, most pipelines have not been inspected for 25 years, causing technical losses of up to 15% of total supply. Compressor
stations are also in a state of disrepair, operating at less than 35% of capacity.
Besides safeguarding domestic supply, pipe- line improvements will also help Uzbekistan free up more gas for export to China and other Central Asian countries. It is hoping to ramp up shipments to China alone to 10bn cubic metres annually.
In addition to work on its transmission net- work, Uzbekistan is also expanding its under- ground gas storage (UGS) facilities at the Gazli gas field, at a cost of $850mn. Uztransgaz has partnered with a Russian firm called Forus to undertake the project, which will double storage capability to 6 bcm and eventually raise it to 10 bcm.
Under government plans, Uztransgaz will eventually be spun off from its parent company Uzbekneftegaz (UNG) and run independently. A 49% stake will then be sold to investors by 2024, and its distribution networks will also be privatised. Not only are these steps designed to increase transmission quality, but they should also help ensure non-discriminatory pipeline access for producers. ™
PROJECTS & COMPANIES
Equinor enters joint research pact with KMG
KAZAKHSTAN
The companies have not divulged which projects they are looking at.
NORWAY’S Equinor has agreed to conduct joint studies with Kazakhstan’s state-owned KazMu- nayGas (KMG) at oil and gas areas in the Central Asian country.
The joint study agreement covers geolog- ical and geophysical research at sites set to be awarded to investors under subsoil use contracts, KMG said on September 24. The Kazakh com- pany did not divulge any more details of the areas set for study, and Equinor has not commented on the deal.
“We expect that this agreement will serve as thebasisofsuccessfulcooperationinthefuture,” KMG chairman Alik Aidarbayev said in a state- ment. Both companies are ready to consider Equinor as a strategic partner under exploration and production contracts in Kazakhstan.”
The research pact marks Equinor’s return to Kazakhstan after a six-year hiatus. The company has a long history in the country. It was among
the early investors in the offshore Kashagan oil project, but sold its 4.8% stake in the ven- ture to France’s Total in 2001. It is unlikely that Equinor’s management regretted this decision, as Kashagan’s development later became beset with delays, with its eventual cost escalating above $60bn.
In 2005, Equinor began talks with KMG on joint exploration of another offshore block known as Abay, and the pair signed a heads of agreement (HoA) on the project in 2011. Equinor pulled out two years later, however, cit- ingrisks.
While its presence in Kazakhstan is lim- ited, Equinor is an active player off the coast of Azerbaijan, on the opposite side of the Caspian Sea. It is a shareholder in the prolific Azeri-Chi- rag-Gunashli (ACG) oilfields, and is making preparations to explore several new Azeri con- tract areas.™
Week 39 02•October•2019 w w w . N E W S B A S E . c o m P9