Monday, August 22, 2011

Modern Maginot - Central Asian Oil Pipelines May be Obsolete Before They Pay Off Time, Cost of Construction.

article originally posted on CA-NEWS.org



Central Asia is quickly emerging as a global center of hydrocarbon production, but the ambitious transnational pipelines built to access this oil and natural gas wealth may become obsolete sooner than anticipated.

Since at least the 17th century, the Caspian basin supplied hydrocarbons of one form or another to markets in Europe, the Middle East and Central Asia. Naphtha, kerosene, mazout, petroleum, and now natural gas have all brought international interest and wealth to the otherwise economically underdeveloped region. Local entrepreneurs and foreign investors have made - and lost - fortunes as political, economic and technological changes either emanated from, or swept over, the region.

Today, Azerbaijan, Turkmenistan, Kazakhstan, and Uzbekistan produce substantial amounts of oil and natural gas, and stand to become major hydrocarbon exporters to a global market of increasing demand. This is true for both emerging economies like China and India, as well as energy-intensive developed countries in Europe. The challenge facing modern multi-national corporations and national petrol companies is the same - how to dispose of the region's resource wealth profitably. The best answer to date is to transport these gaseous and liquefied goods to the markets of greatest demand, China and Europe, via long-distance transnational pipelines.

Monday, August 15, 2011

UNEP Report Confirms, Water will be continuing source of Friction in Central Asia

originally posted on CA-News.org (Russian)
by Ryan Weber

photo credit: Flikr/Sarah Olmstead

Water is the source of life, but in the Central Asian states along the Amu Darya it has also become a source of current and future strife. Unsustainable water management policies put in place during the Soviet Union continue, without dramatic change, 20 years after independence. In that time, Amu Darya ecosystems were decimated, the Aral Sea virtually disappeared, agriculture is struggling to maintain production levels, and countries are unable to provide citizens’ basic power needs. Even worse, while many of these unprecedented impacts are irreversible, policy makers along the Amu Darya bitterly contest any changes. The predictable result is further degradation and increasing regional tensions.

A new report (PDF) by the Environment and Security Initiative of the United Nations Environment Programme (UNEP) clarifies the nature of these tensions, and provides recommendations for how all parties involved can reach equitable, sustainable solutions. Without favoring one political or economic sector, the report describes how Soviet-level central planning and resource distribution led to the creation of immense irrigations projects in the Uzbek and Turkmen SSRs. This was made possible only by the controlled release of water from massive hydroelectric dams in the ‘upstream’ Tajik and Kyrgyz Republics. In return, these mountainous countries received electricity and fuels from their water-hungry, but energy-rich, neighbors during the harsh months of winter. There was no need to quantify or justify such exchanges, nor any need to design infrastructure for the individual Republics that could function independently. That is, not until the collapse of the Soviet Union.

Friday, August 12, 2011

Kyrgyz Release More Water to Fight Kazakh Drought

Reposted from Radio Azattyk (RFE/RL)
by: Zamira Kozhobaeva
style edit: Ryan Weber

At a special meeting in Khokand on August 8, policy makers from Kyrgyzstan, Kazakhstan, Tajikistan and Uzbekistan met to discuss pressing issues of regional water management. Following the meeting, Deputy Chairman of the State Committee on Water Resources and Land Reclamation Chyngyz Uzakbaev spoke with Radio Azattyk.

Radio Azattyk: What are the results of this urgent meeting on regional water management?

Chyngyz Uzakbaev: The talks were devoted to the complicated problem of joint water use. The serious threat of drought due to water shortage looms over South Kazakhstan and the Kyzyl-Orda region of Kazakhstan and southern regions of Uzbekistan, all of which are located in the downstream region of the Syr Darya.

After difficult negotiations, we reached the following agreement: At the request of the Kazakh side, we [Kyrgyzstan] will begin releasing 500 cubic meters of water/second from the Toktogul Reservoie through the Uch-Kurgan HPP [HydroPower Plant]. Due to the extremely hot weather, the Kazakhs asked us to add another 50 cubic meters of water, because they would not otherwise receive the 500 cubic meters of water [due to greater evaporation than normal].

This question is being studied at the governmental level now. Kazakhstan also agreed to buy electricity [from Kyrgyzstan] that will be generated as a result of this water release. Our electricity is tied to exports, and this is a very important issue for us. We asked for a three-day break in the water release, so at this point the beginning on August 9, Tajikistan will release up to 600 cubic meters per second from their Kyra Kum reservoir [to make up the difference].