A camel wanders near Tethys Petroleum's assets in Kazakhstan: Toronto oil and gas minnow wants to establish energy silk road to China.
Tethys sets sight on energy 'Silk Road'
Tethys Petroleum hopes to establish an ‘energy Silk Road’ to deliver oil and gas from central Asian fields to energy-hungry China in the next few years, company Chairman David Robson said.
In an interview with Dow Jones, Robson said the first phase of the Turkmenistan-Uzbekistan-Kazakhstan-China gas pipeline is expected to be operational early next year while an additional pipeline from Kazakhstan to China--next to Tethys' Kyzyloi field--is being planned.
Tethys is developing oil and gas fields in Kazakhstan, Uzbekistan and Tajikistan that are located near pipelines to facilitate exports, according to Dow Jones.
The Toronto listed producer expects to double its oil and gas outputs in central Asia by the end of the first quarter next year.
Its daily natural gas production will rise to over 1 million cubic meters from 560,000 cubic meters as new gas from its Kyzyloi field in Kazakhstan is expected to start flowing at the end of the year, Robson said in the Dow Jones interview.
In addition, the company may pump its first natural gas in Tajikistan at the end of the year, he said.
He estimated the East Komsomolsk well can produce 150,000 to 200,000 cubic meters a day of natural gas.
Light crude oil production at the North Urtabulak oil field in Uzbekistan is expected to double to 4000 barrels per day by the end of the first quarter next year, he said.
The company currently processes half of its crude output at refineries in Uzbekistan and sells refined oil products to China via railway and trucks.
The Toronto listed oil and gas producer is reportedly working on an initial public offering on the Hong Kong Exchange.