“Kyrgyzstan, which has depended almost entirely on Russian fuel for years, is accelerating its search for alternative suppliers. On August 17, the authorities began direct talks with China’s Sinopec. The search has become more urgent as Russian supplies have grown less reliable and gasoline prices in Bishkek have risen. Some filling stations have also periodically run out of AI-95 gasoline.”
“Erlist Akunbekov, Kyrgyzstan’s deputy chairman of the Cabinet of Ministers, met with executives from China Petroleum & Chemical Corporation (Sinopec) in Urumqi on August 17. Representatives of more than ten Kyrgyz oil-sector companies traveled to China with him. The sides discussed direct supplies of petroleum products, including transportation and customs clearance.”
“The search for alternatives began before the latest meeting with Sinopec. Kyrgyzstan has held talks with Kazakhstan and Belarus, while separate discussions have involved Uzbekistan. Azerbaijan and Turkmenistan have also been approached. Agreements have already been reached with Belarus for supplies of diesel and jet fuel, while the first shipment of petroleum products from China was sent by road in July.”
“According to government estimates, even after modernization, [Kyrgyzstan’s] two plants will be able to cover only about half of the country’s demand. To meet the remainder, the authorities have proposed building two more refineries, one in Kemin in the north and another in Osh or Jalal-Abad in the south. Japarov has suggested locating the southern refinery near the China-Kyrgyzstan-Uzbekistan railway now under construction. This could allow feedstock to be imported from Russia and Iran, with additional supplies coming from Azerbaijan or Turkmenistan.”
“Over time, the railway could change Kyrgyzstan’s fuel supply system more significantly than individual contracts with Sinopec. Today, the lack of a direct rail connection makes large-scale imports of Chinese fuel expensive. The China-Kyrgyzstan-Uzbekistan railway is intended to connect Kyrgyzstan directly with China by rail and create a new freight route through Central Asia.”