A recent auction held by the State Commodity Exchange of Turkmenistan revealed that businesspeople from the UAE, Afghanistan, and Uzbekistan have entered into a contract to purchase 40,000 tonnes of liquefied gas from state-run Turkmengaz. The deal, which carries a total value of $15.6mn, represents just one of the 29 agreements reached during the auction, which amounted to $30mn.
Reportedly, liquefied gas (at $394 per ton) and motor gasoline ($676) were in particular demand. A deal for the latter commodity was struck by brokers from the UAE and Afghanistan, who purchased 19,000 tonnes of A-92 fuel for $12.8mn.
Turkmenistan is one of Central Asia's key natural gas suppliers. Its gas fields contain significant amounts of propane-butane, which makes it feasible to build liquefied hydrocarbon gas plants.
The primary plants, with equipment from the US, Canada, and Germany, operate near the Naip, Bagadja, Gazlydepe, and Kerven fields.
Uzbekistan, where Russian Gazprom previously re-exported Turkmen natural gas, switched to direct purchases in December 2022. It signed an agreement with Turkmenistan to import 1.5bn cubic meters for the winter season.
Analysts say they study the possibility of a long-term contract with fixed prices. Two trunk pipelines through Uzbek territory carry Turkmen's natural gas to China and Russia.
Credits: Eziz Boyarov, Ashgabat
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