Page 16 - FSUOGM Week 49 2021

FSUOGM NEWS IN BRIEF FSUOGM

and focusing on direct neighbouring states. each with the initial production capacity of of the plant was initially scheduled to begin
The deal also glosses over a previous 125,000 gallons of LNG per day. in 2021, but the pandemic delayed the
long-standing dispute between Tehran and developments.
Ashgabat over the unpaid dues which the "We are at the design stage and we
two countries previous went to court over. Uzbekistan imports 300mn have already moved to the licensing stage.
On November 28 in Ashgabat, We lost a year because of the COVID-19
Azerbaijan, Iran and Turkmenistan signed a litres of gasoline in first 10 pandemic, but there is nothing we can
contract on swap gas supplies. According to do about it. Therefore, we will not be able
the document, Turkmen gas will be supplied months to commission the refinery in 2024, but
to Azerbaijan through Iran in the amount of in 2025. We have already written to the
up to 1.5-2 billion cubic meters per year. Uzbekistan imported over 300mn litres National Agency for State Property and
Swap supplies of Turkmen gas to of motor gasoline in January-October, the government to defer the investment
Azerbaijan through Iran will begin on according to the country's statistical commitment. They are aware of our plans,"
December 22 this year. committee. Shavdia said.
The trilateral agreement will again The figure is 128mn litres, or 1.74 times The creation of a free economic
provide gas to five provinces of Iran’s higher, year on year. Russia and Turkmenistan zone in Kulevi and the construction of
Khorasan regions close the Turkmen were the main exporters to motor gasoline to a urea plant on the site was originally
border.. Uzbekistan, shipping 142mn and 136mn litres, planned by Socar Georgia Investments.
respectively. For the implementation of this project,
In October alone, Uzbekistan imported on September 12, 2012, according to the
Condor Petroleum signs 9.2mn litres from Turkmenistan and 1.8mn decree of the government of Georgia, the
conditions for the establishment of "Kulevi
litres from Russia. Iran supplied over 1mn litres.
cooperation deal with domestically produced 902,700 tonnes of FIZ" were set in place, but the State Oil
Also in the first 10 months, Uzbekistan
Company of Azerbaijan did not implement
Kazakhstan’s KTZ gasoline, or 1.2bn litres. This means that the project and in 2016 Phasis Oil took over
the country imported 20% of gasoline
the agreement with the Georgian state.
Condor Petroleum has reported continued consumed in Uzbekistan in the period. According to Gia Shavdia, Phasis Oil
progress with its strategy to implement Some 78.8% of gasoline produced in plans to invest $1.2bn in the construction of
proven North American modular liquefied Uzbekistan was made by the Bukhara an oil refinery.
natural gas (LNG) technologies and refinery, while 21.1% was produced by the The 599,970 square metres of land in
processes to produce LNG in Kazakhstan. Ferghana refinery. Kulevi for GEL1 was sold to Phasis Oil
The company has signed a cooperation with a clause providing for at least $120mn
agreement with Kazakhstan’s state-run investments.
railroad operator, Kazakhstan Temir Zholy Georgian investor confirms "Processing of imported raw materials is
(KTZ), for a project to convert Kazakhstan’s planned. Several countries will be suppliers
national freight locomotive fleet to LNG works on Kulevi refinery including the Caspian Pipline Consortium,
fuel. A field demonstration project will be as well as possibly Libya and Saudi Arabia.
carried out. It will be followed by a long- begin next year We need to import light oil. Production
term agreement for Condor to produce and will start in 2025 and we plan to refine 4.5
supply LNG to KTZ as a fuel for its freight Georgian company Phasis Oil, set up by million tons of crude oil annually," said Gia
locomotive fleet. entrepreneur Gia Shavdia with the support Shavdia.
KTZ operates a rail network of of the Multiplex investment company According to him, the design process of
approximately 15,000 kilometres and a founded by local businessman Levan the factory is underway at this stage, but
fleet of more than 700 mainline freight Kacharava, confirmed the start of the relatively slowly.
locomotives. The conversion of the construction works for an oil refinery in
locomotive fleet to LNG fuel is expected to Kulevi next year. "If in the past we needed foreign partners
significantly reduce operating costs, reduce The construction of the refinery, with a to do a specific work within a month, now
CO2 emissions, increase transportation capacity of 4 million tonnes per year, was it takes 2-3 months because everyone works
speeds and reduce dependence on diesel supposed to start in 2021. The refinery is from home," he said.
fuel imports. expected to have 98% depth of processing
and produce Euro 5 and 6 gasoline and
Condor potentially may become the diesel and thus reduce Georgia's import
largest producer and supplier of LNG in needs for oil products by 15%-20%,
Central Asia. The company is hoping to according to S&P.
construct multiple modular LNG facilities, Shavdia told BMG that the construction

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