High domestic natural-gas prices hurt Tajik industrial enterprises

DUSHANBE, January 11, Asia-Plus — Tajik-Cypriot JV TajikAzot says high domestic natural-gas prices will hurt Tajik enterprises working on gas.  According to the JV administration, it cannot afford to purchase natural gas from Tojikgaz, Tajik state gas concern, at the rate of $130 per 1,000 cubic meters. 

The TajikAzot head Tohirkhon Ghoziyev said in an interview with Asia-Plus that domestic price of natural gas determined by Tajik gas concern at the rate of $130 per 1,000 is unacceptable for Tajik enterprises working on gas.  According to him, his enterprise is ready to purchase gas at the rate of not higher than $110 per 1,000 cubic meters. 

“The price determined by Tojikgaz will lead to increase in cost price of industrial goods manufactured in Tajikistan and impact the country’s economy negatively,” Ghoziyev said, noting that TajikAzot refused to receive gas supplies until the final tariffs are determined.  

            According to him, administration of Tojikcement (Dushanbe cement plant) also demands that the domestic natural-gas price should be determined at the rate of $110 per 1,000.

Ghoziyev said that to produce the targeted 150,000 tons of carbamide this year TajikAzot needs to keep its two production lines operational.  “For this, the plant needs up to 1700 million cubic meters of natural gas this year,” said the TajikAzot top manager, “If we pay for natural gas at the rate of $130 per 1,000 cubic meters, the price of one ton of the product will rise from $130 to $300.”  It will put the plant at a disadvantage because the price of one ton of the imported carbamide is up to $200.    

            In this context, the TajikAzot head pointed to the necessity of adopting laws on protection of economic interests of Tajikistan and protection of rights of domestic goods-producers.  

We will recall that under the terms of the deal reached in Tashkent last month, Uzbekistan this year is supplying natural gas to Tajikistan at the rate of $100 per 1,000 cubic meters.  Tajikistan is expected to import at least 700 million cubic meters of Uzbek gas this year.

A source at the government said that the natural-gas and electricity rates should be confirmed during this month.   

The closed joint-stock company TajikAzot is the joint venture launched in cooperation with Cypriot company Highrock Holding Limited in March 2002.  The JV was established on the basis of the plant for producing mineral fertilizers that was constructed in Sarband in 1964.

Tajikistan owns 20 percent of the shares and the Cypriot company assumes the 80 percent ownership interest in TajikAzot.

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