Large oil refinery constructed in southern Tajikistan counts on Azerbaijani crude oil

Asia-Plus

The possibility of supplying Azerbaijani crude oil to Tajikistan for an oil refinery built in the territory of the Danghara free economic zone (FEZ Danghara) was discussed at a meeting of Tajik Minister of Economic Development and Trade Zavqi Zavqizoda with Azerbaijani Prime Minister Ali Hidayat-ogly Asadov that took place in Azerbaijan’s capital, Baku, on July 7.  

The press center of the Ministry of Economic Development and Trade of Tajikistan (MoEDT) does not indicate the achievement of any specific agreements on this issue

The MoEDT press center just notes that the parties discussed issues related to attraction of capital for rehabilitation of the Tajik aluminum smelter operated by the Tajik Aluminum Company (TALCO), the export of primary aluminum, cryolite and aluminum fluoride to Azerbaijan, the import of alumina from Azerbaijan, etc.  

Meanwhile, Azerbaijan’s Azertag news agency reported on July 7 that the two stressed the importance of the Azerbaijani President`s state visit to Tajikistan this April.

They reportedly also reviewed mutual activity between the two countries in the economic, trade, investment, cultural and humanitarian areas.

They noted the significance of holding the 6th meeting of Joint Intergovernmental Commission on trade and economic cooperation between Azerbaijan and Tajikistan in Baku, according to Azertag.

Recall, introducing the oil refinery built in the territory of the FEZ Danghara into operation has been postponed since 2018.  Tajik official said at the time that it is necessary to stock up a certain amount of crude oil in order to introduce the oil refinery into operation.  Periodically at that time it was reported about the supply of crude oil to Tajikistan for this oil refinery from Kazakhstan, Turkmenistan, and Iran.  

The construction of the oil refinery with annual capacity of the processing of 1.2 million tons of oil commenced in 2014.  

Before the start of the construction of this oil refinery, senior representatives of Tajik company Hasan & Co told Asia-Plus that their company would participate in the construction of this oil refinery jointly with the Tajik-Chinese Joint Venture Dongying Heli Investment Development Co.,Ltd.

Independent experts noted at the beginning of the construction of this oil refinery that it is inexpedient to build a large oil refinery in the country, which does not have enough oil reserves.  

According to data from the Agency for Statistics under the President of Tajikistan, the country last year produced only about 25,000 tons of oil, which is 50 times less than Dangahra Oil refinery’s project requirements.   

Currently, two small oil refineries with total annual capacity of 150,000 tons operate in Tajikistan, but they are not operating at full capacity.  

According to data from the Agency for Statistics, Tajikistan last year produced only 150 tons of gasoline, 4,000 of diesel fuel, 5,100 tons of fuel oil, 3,200 tons of bitumen

Meanwhile, Tajikistan last year imported about 853,000  tons of petroleum products, including 387,000 tons of diesel fuel, 320,000 ton of gasoline, 60,000 of jet fuel, 40,600 tons of  petroleum coke, 30,000 tons of fuel oil and bitumen, and 1,200 tons of other petroleum products.  

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