Cash-strapped Tajikistan launches construction of first refinery

Tajikistan’s President Emomali Rahmon launched construction of the country’s first refinery, a 2,000-b/d facility in the town of Tursunzoda about 40 km west of the capital, Dushanbe.

Construction of the facility was prompted by supply shortages and price increases after Russia imposed prohibitive tariffs on gasoline exports in May to address its own supply shortages.

Analyst Andrew Neff of IHS Global Insight said the export tariffs on Russian gasoline helped alleviate shortages in the Russian market. But Neff also noted, “There is a growing fear that Russia could see more oil product shortages in certain regions, with consequent negative effects for countries such as Tajikistan that rely on Russian oil product imports.”

Rahmon suggested if funding could be found to increase the refinery’s capacity to 10,000 b/d, then 90% of Tajikistan’s fuel and lubricants would be met by the new installation.

Energy analysts claim the kind of refinery envisaged for Tajikistan can be built in 4-5 months at a cost of $100-150 million and could pay for itself within 8 months under local conditions.

Export duties
News of the refinery coincided with reports that Tajikistan and Russia have yet to reach consensus on lowering or eliminating completely export duties on light oil products imported by the republic.

Since the beginning of 2010, Tajikistan has been trying to get Russia to cancel the duties, which are now $400.50/tonne of Russian gasoline and $298.20/tonne of the remaining oil products.

Neighboring Kyrgyzstan succeeded in getting Russia to cancel export duties on products, but Tajik Economic Development and Trade Minister Farruk Khamraliyev is uncertain how the agreement was reached.

“We don't have specific information as to how Kyrgyzstan was able to convince Russia to lift the export duties. Several reports have it that this became possible after the parties agreed to jointly carry out several different energy projects,” Khamraliyev said.

Meanwhile, Zhumakydar Akeneyev, president of the Association of Oil Traders of Kyrgyzstan, said up to 1,000 tonnes/day of fuels are smuggled from his country to Tajikistan.

“We set gasoline purchase limits in southern regions because a large consignment of fuels is being smuggled into Tajikistan via the Batken region,” said Akeneyev “We are just forced to set these limits.”

In May, however, Kyrgyz customs service chief Kubanychbek Kulmatov predicted fuel smuggling from Kyrgyzstan into Tajikistan will increase due to price variations between the two countries.

“Current price for a liter of diesel fuel in Kyrgyzstan is 52-53 som and variation of diesel prices in Kyrgyzstan and Tajikistan is now very high,” said Kulmatov, who also observed, “Our common border with Tajikistan is practically open.”

Since the beginning of this year, prices for gasoline and diesel fuel in Tajikistan have risen 25%, with officials saying the Central Asian country spends $343 million/year on imported oil products, out of a state budget of $2 billion.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Shell cancels Arrow LNG project

01/30/2015

Royal Dutch Shell PLC has abandoned its plans for what would have been a fourth coal seam gas-LNG project at Gladstone in Queensland.

US Senate passes bill approving Keystone XL pipeline project

01/30/2015 The US Senate has passed a bill approving construction of the proposed Keystone XL crude oil pipeline by a 62-36 vote after 3 weeks of debate. Nine...

Douglas Channel LNG moves toward 2018 startup

01/29/2015 Exmar NV, EDF Trading, and AIJVLP, a joint venture of AltaGas Ltd. and Idemitsu Kosan Co. Ltd., have taken full ownership of the 550,000 tonne/year...

Mitsui charters two more LNG ships for Cameron export project

01/29/2015 Mitsui & Co., Ltd., Tokyo, reports contracts for chartering two new ships to transport LNG to Japan from the Cameron LNG export project in Loui...

US House approves bill aimed at increasing LNG exports

01/28/2015 The US House of Representatives passed a bill aimed at increasing US LNG exports by requiring the Department of Energy to determine whether a proje...

New Russia-Turkey gas pipeline route approved

01/28/2015

OAO Gazprom reported selection of a route for a gas pipeline across the Black Sea from Russia to Turkey.

PHMSA outlines community steps to reduce pipeline incident risks

01/27/2015 The US Pipeline and Hazardous Materials Safety Administration released a guide to best practices for communities to reduce risks from pipeline inci...

Knight Warrior Eaglebine-Woodbine crude pipeline advances

01/27/2015 Knight Warrior LLC has reached agreements to build its 160-mile, 100,000-b/d pipeline linking the East Texas Eaglebine-Woodbine crude oil play to H...

ETP, Regency to merge in $18-billion deal

01/26/2015 Energy Transfer Partners LP (ETP) and Regency Energy Partners have agreed to merge in a unit-for-unit transaction, plus a one-time cash payment to ...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected