Chinese investment central asia energy

And although the government pushed CNPC to make big investments in the China-Central Asia system, it never devised a pricing policy that would avoid losses on gas imports or make the pipelines pay for themselves. An analysis by Michael Lelyveld Still, China has not forgotten that Central Asia is loaded with risk as well as opportunity. Chinese goods-exports growth slowed to 5. Macroeconomic realities dictate that CAR governments will not be able to meet these needs on their own, leading to the emergence of an infrastructure gap.

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Since the fall of the Soviet Union, China has focused its energy policy towards Central Asia on the upstreaminvesting in oil and gas extraction to fuel its growing energy demand. But recently China has started investing into the downstream sectormost notably by building oil refineries in Kyrgyzstan, Tajikistan, and Kazakhstan. Due to its aging energy infrastructure and a lack of refineries, Central Asia is reliant on Russia for supplies of chinese investment central asia energy oil products, such as gasoline for transportation. China sees the reduction of Russian influence as essential to ensuring the stability of Central Asia and, in turn, the stability of Xinjiang, an autonomous region in western China that central authorities hope will emerge as a regional trading hub. Resource rich Kazakhstan is China’s major partner in Central Asia.

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Jumadilova, Zh. Amzenova, S. Serzhznkyzy, Zh. Bagitzhanova L. Gumilyov Eurasian National University jumadilova82 mail.

Since the fall of the Soviet Union, China has focused its energy policy towards Central Asia on the upstreaminvesting in oil and gas extraction to fuel its growing energy demand. But recently China has started investing into the downstream sectormost notably by building oil refineries in Kyrgyzstan, Tajikistan, and Kazakhstan. Due to its aging energy infrastructure and a lack of refineries, Central Asia is reliant on Russia for supplies of refined oil products, such as gasoline for transportation.

China sees the reduction of Russian influence as essential to ensuring the stability of Central Asia and, in turn, the stability of Xinjiang, an autonomous region in western China that central authorities hope will emerge as a regional trading hub.

Resource rich Kazakhstan is China’s major partner in Central Asia. The two investemnt share a km long border and Chinese companies own many oil fields around Aktobe in western Kazakhstan. Source: BBC News. There is no Kazakh refinery able to refine crude to a standard better than Euro 2 Cengral 80even though Euro 4 and 5 standard fuel constitute the bulk of the forecasted demand in the country.

Furthermore, the cost of extracting and refining Kazakh crude oil, which is high in sulfur content, is higher than the cost of Russian refined products coming from western Siberia. The goal is to refine up to 6 million tons of jnvestment per year. However, this situation is about to change. By the end oftwo Chinese-financed refineries will be installed in enerby towns of Kara-Balta and Tokmok.

Both refineries are strategically placed on the railroad linking Kyrgyzstan to Kazakhstan and Russia, through Aktobe, where CNPC controls important oil fields from which Kazakhstan will supply these new refineries. With a combined capacity of 1. In Tajikistan, a Chinese-financed refinery is under construction in the town of Dangahrawhich is in the home region of President E. It is yet unclear from where crude will be sourced to feed this refinery, but some speculate that it will be supplied from oil fields that CNPC is exploring in the western part of the country.

Making large investments in the downstream industry is a new move for China in Central Asia. Xinjiang is at the heart of Central Asia, and the Chinese government aims to make Xinjiang a trading hub for the entire region.

When Russia negotiated the extension of the deal for a Russian military base in Infestment infor example, gas stations were forced to close all over Tajikistan because Russia reduced its exports into the country.

Kyrgyzstan then imposed a ban on export of refined investmebt to Tajikistan in order to prevent its own domestic fuel shortages. China aims to counteract this type of leverage with downstream investments. As soon as Kazakhstan, Kyrgyzstan and Tajikistan gained independence inChina resolved its border conflicts with these countries and gave them new economic opportunities. China strongly opposes any type of cenhral change in Central Asia, particularly the democratic evolution supported by the US through Kyrgyzstan’s revolution.

The two Kyrgyz revolutions in and were setbacks to China’s aim of limiting foreign influence in the region. The rise in electricity and gasoline prices in the winter that preceded the ousting of President Bakiev in was mainly manipulated by Russia to pressure his regime. China felt it was necessary to get involved in downstream activities as a way to counterbalance Russian influence. When needed, China has even openly supported Central Asian governments against Russia, for example, during the Russia-Turkmenistan gas crisis ofor when China backed Central Asia countries in their protest against the annexation of South Ossetia and Abkhazia chinese investment central asia energy the war between Georgia and Russia.

According to Konstantin Syroyezhkin, Central Asian states are laboratories for China’s new normative power. China has broken the Russian monopoly over Central Asian energy resources by developing and implementing projects to extract and import oil and gas, and is now trying to help guarantee the political independence of Central Asian states from Moscow through its energy policy.

To Dispatches. Author: Anatole Douaud. Share. Tajikistan In Tajikistan, a Chinese-financed refinery is under construction in the town of Dangahrawhich is in the home region of President E. The views expressed here are those of the author, and do not necessarily represent the views of the Asia Pacific Foundation of Canada. Subscribe to our e-publications.

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But as we outline in our reportif the high-potential region can demonstrate a level playing field for investors guaranteed by strong institutionsreliable funding sources will follow. Six years since maca fever faded in Peru, communities who protected the root for hundreds of years still feel the effects of biopiracy. Gazprom has more than doubled its budget for investment in the Power of Siberia project from Chinese goods-exports growth slowed to 5. As the Republics of Central Asia continue on their trajectory of economic development, there will be an ongoing increase in demand for connective infrastructure in the forms of energy, transport, telecommunications, and. But prospects for Bokhtar development have been stalled by lack of financing and further complicated by legal disputes since last year. It is divided into 4 segments. Chinese policy-makers cannot accurately predict what may happen in Kazakhstan or Uzbekistan once ageing dictators whose families have allegedly amassed fortunes on the back of resource wealth exit the regional scene. But while the BRI can be a great facilitator for connectivity and development in the region, Central Asian countries must be active in the management of the belt and road projects passing through their territory if they hope to maximize local input — and impact. The calculations changed in after CNPC acquired a one-third interest in Tajikistan’s Bokhtar oil and gas field, which was said to be a giant discovery with 3. Consumption rose 5. After at least two previous delays since latethe reports suggest that the planned project known as Line D, approved by President Xi Jinping inchinese investment central asia energy been dropped. The outlook may have doomed the Line D project to add up to 30 bcm of annual capacity to the 55 bcm already in service from the three existing strands of the Central Asia. Worldwide stocks extend their losses over the weekend, leaving little room for optimism of a macroeconomic rebound.