The Tajik Aluminum Company (TALCO) now has no need in Uzbek natural gas, a source at TALCO told Asia-Plus in an interview.
According to him, the company now uses the coal gas for production of anodes.
“TALCO and Russian Aluminum (RusAl) plan to organize work on production of anodes. RusAl considers it necessary to use natural gas for production of anodes. Negotiations are currently under way and if any agreements are reached, we will apply to Uzbekistan for natural gas,” Igor Sattarov, a spokesman for TALCO, told Asia-Plus, commenting on the possibility of Tajik aluminum smelter’s shifting to natural gas.
Recall, TALCO has gas generators for gasification of coal. TALCO’s annual requirements in gas are 50 million cubic meters and 45 million cubic meters of gas is reportedly generated through gasification of coal.
Coal gasification is the process of producing coal gas, a type of syngas (synthesis gas) – a mixture of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2) and water vapour (H2O)–from coal.
As it had been reported earlier, an official at Open Joint-Stock Company Tojiktransgaz (Tajik state natural-gas distributor) told Asia-Plus on November 7 that a preliminary agreement for gas deliveries was reached during recent talks in the Uzbek capital, Tashkent.
No price has been set yet and there is no available information about the volumes to be imported, but the Tojiktransgaz source claimed the cost would be considerably lower than that dictated by global market rates.
Uzbekistan stopped gas deliveries via pipeline to Tajikistan on December 31, 2012 after both sides failed to agree on gas prices following the expiration of their contract.
Uzbekistan, Tajikistan’s only supplier of gas, routinely suspended gas deliveries to its neighbor amid complaints of nonpayment.
Starting from 2007, Uzbekistan began to demand Tajikistan pay more for its gas amid complaints of unpaid bills.
Uzbek natural gas prices varied quarterly depending on the world trends and Tajikistan had to make prepayments every ten days.
In 2010, an average price of 1,000 cubic meters of Uzbek natural gas for Tajikistan was US$240.00; in the first quarter of 2010, the price of 1,000 cubic meters of Uzbek gas was US$231.00 and in the fourth quarter, it rose to US$254.00.
In the first quarter of 2011, Tajikistan bought natural gas from Uzbekistan for US$227.85 per 1,000 cubic meters, while the price for the second quarter was US$249.19 per 1,000 cubic meters. In the third quarter, Tajikistan bought natural gas from Uzbekistan for US$284.33 per 1,000 cubic meters and the price for the fourth quarter was US$311.00.
In 2012, an average price for 1,000 cubic meters of Uzbek gas in Tajikistan was 300.00 U.S. dollars. In 2012, Tajikistan received 132.4 million cubic meters of natural gas from Uzbekistan, 46.6 million cubic meters fewer than in 2011.
Signs of a thaw in relations between Tajikistan and Uzbekistan emerged in September last year. In the years since independence, bilateral relations have been plagued by mistrust, disputes over water resources and outright hostility. Both sides have adopted a series of punitive measures against each other. President Shavkat Mirziyoyev has expressed interest in “resetting” relations with Tajikistan.
Regular flights between Dushanbe and Tashkent that were suspended in 1992 at Uzbek authorities’ initiative were resumed in April this year.
