It has been a chastening few months for gas-rich Turkmenistan. Two long-standing energy buyers have indicated they will stop purchasing the country’s natural gas, potentially leaving Ashgabat dependent on Chinese demand.
The steep decline in global oil prices is stoking angst in Kazakhstan. Experts and officials alike say the government has ample resources to grapple with fiscal surprises. The real question is whether the political will exists for the government to take necessary measures.
It appears Turkmenistan is about to lose its second-best customer for natural gas, Iran.
Iranian Oil Minister Bijan Namdar Zanganeh said on August 11 that his country no longer needed gas from Turkmenistan. Zanganeh went so far as to say, "Iran is importing Turkmen gas just because it is important to promote political and economic relations with Turkmenistan."
Early this year, Tajikistan’s largest industrial enterprise sent home about a fifth of its workforce and cut wages by 30 percent for the rest. According to its own figures, the state-owned aluminum plant, Talco, lost over $40 million last year and hasn’t turned a profit since 2010.
The Soviet Union built Nurek, the tallest hydropower dam in the world, and Talco, the largest factory in what is now Tajikistan, as part of a single system in the 1970s. Aluminum smelting requires vast amounts of power. The dam and the plant were to help industrialize the distant, subsidy-dependent Soviet republic.
When Bibiradja Ochildieva, a resident of Tajikistan’s capital Dushanbe, stepped into her backyard to collect her laundry one day recently, she was horrified to find her family’s clothing covered in black soot. “It was like there had been a fire,” she recounts.
In early June, a newspaper in Pakistan announced the Asian Development Bank would withdraw from a much-anticipated energy transmission project that aims to connect Central and South Asia. The report stated that security fears in Afghanistan were prompting the ADB to drop its 40 percent interest in the project.
China is financing the construction of Kyrgyzstan’s first major oil refinery, and excitement is building in Bishkek that the facility could enable the Central Asian nation to break Russia’s fuel-supply monopoly. At the same time, some observers express concern that the project may stoke local resentment, or become enmeshed in political infighting.
The Armenian government’s recent decision to prolong the lifespan of the aging Metsamor nuclear power plant– a decision supported by the United States – is provoking a public outcry. But with no replacement energy source in sight, the government maintains it has no choice but to place faith in the facility’s sole functioning reactor.