Kazakhstan has become a leading global exporter of energy resources, Head of Government Karim Massimov says. According to the plans of the Ministry of Energy, oil production in Kazakhstan will exceed 100 mln tonnes per year after 2020. The country is commissioning new fields, developing downstream sector and completing its work over the Code on “Subsoil and Subsoil Use”.
Top-10
“Kazakhstan has become a leading exporter of energy resources over the past years. In coming years we hope to become one of the top major producers of energy resources including natural gas. We also plan to develop fields for shale gas production”, Prime Minister of the Republic of Kazakhstan Karim Massimov stated on November 27, addressing the Energy Charter Conference in Astana, the press service of the Government of the Republic of Kazakhstan informs.
“It is getting absolutely evident that the energy security is nowadays one of the major problems. The economic growth leads to the increase of demand in energy resources. We think that this line of activity as well as search for new renewable sources of energy will become increasingly important in coming years. No country and state can handle this problem alone. We should respond these challenges together”, K.Massimov said.
“Development of efficient energy markets is a common interest for producers, transporters and consumers of energy”, he said.
The configuration of conventional flows of energy resources around the world is currently changing, Minister of Energy of the Republic of Kazakhstan Vladimir Shkolnik said. “The majority of experts predict that oil and gas will continue playing a leading role in the global energy balance at least for several decades. Moreover, changes in configuration of conventional flows of energy resources, activation of consumption of fossil fuel in developing countries especially in India and China is currently observed”, V.Shkolnik said.
According to him, the growth of importance attached to energy efficiency and renewable sources in OECD countries is also observed today. “It makes reconsider the long-term geography of supply of energy resources”, V.Shkolnik noted.
Oil production in Kazakhstan will exceed 100 mln tonnes after 2020. “According to our forecasts, oil production in Kazakhstan will exceed 100 mln tonnes per year or 2 mln barrels daily after 2020”, head of the Ministry of Energy of the Republic of Kazakhstan informed.
He clarified that oil production in Kazakhstan has grown more than 3 times over the past 20 years and makes 1.6 mln barrels per day. Gas production grew by more than 5 times. Nowadays the country produces over 40 bcm of gas per year. “Oil-gas and energy industry is one of the basic elements of construction of our economy. Over the years of independence we managed to become one of top 15 big possessors of proven oil resources and top 20 possessors of gas reserves”, Vladimir Shkolnik added.
Energy
Investments worth over 8 trillion tenge ($44 bln) will be attracted to the energy sector of Kazakhstan in 2016-2030. Vice Minister of Energy of Kazakhstan Bakhytzhan Dzhaksaliyev said during the energy forum on “Innovations in energy Kazakhstan-2050”.
“As part of our plans, we are supposed to achieve a number of goals, in particular a significant decrease of the average level of deterioration of electricity equipment in Kazakhstan by 2030, attracting investments in the electricity sector worth 8.2 trillion tenges for a period of 2016-2030 years, providing a moderate growth rate of electricity tariffs for end-users by 2030 and making the Unified Energy System of Kazakhstan independent and self-sufficient by 2030,” he said.
The deputy energy minister went on adding that the annual volume of investment made in the power industry of Kazakhstan has increased five times over the past five years since application of the maximum tariffs. He said as of today, the investment amounts to about 700 billion tenges (180.87 tenge = $ 1).
“It allowed modernizing the existing 5,000 MW and introducing additional electrical capacity in the amount of 1700 MW. As a result, it fully covered the NP FIID needs in electricity. This figure will reach 3,300 MW by the end of 2015,” Dzhaksaliyev said.
No electricity deficiency is expected in Kazakhstan in 2014, Chairman of the Board of “Samruk-Energy” JSC Almasadam Satkaliyev said at the briefing held in the Central Communications Service.
According to the information of the system operator KEGOC, the maximum load in Kazakhstan will comprise13.5 thou MW this year. “There are about 16 thou MW electricity available for supply. No interruption in electricity supply must occur because of shortage of capacities except for emergency cases”, he emphasized.
Meanwhile, he clarified that Kazakhstan will supply electricity to the Kyrgyz Republic within the framework of signed agreements. Thus, corresponding agreements have so far been signed with KazTransGas and KEGOC companies for electricity supply till the Kyrgyz border. As soon as agreements with the Kyrgyz side are signed, Kazakhstan will immediately start supplying electricity, fully covering the energy deficiency. “In this case it involves supply of electricity for 15.7 tenge VAT exclusive”, he added.
Downstream
Kazakhstan is developing downstream sector as well. Reconstruction of Shymkent Oil Refinery will be carried out in spring of 2015, akim of South-Kazakhstan region Askar Myrzakhmetov said at the briefing of the Central Communications Service on November 28.
“A road map has been adopted in order not to reduce the set pace at the beginning of the year and to have indicators performed in full scale. The map included 4 issues that the republic bears responsibility for. The rest are the issues of regional level. One of these four issues is the rescheduling of the date of the oil refinery repair. The repair of the plant has been rescheduled to spring of 2015”, A. Myrzakhmetov said.
There are 3 oil refineries with the overall capacity of 18 mln tonnes per year operating in Kazakhstan: Atyrau Oil Refinery OJSC, Pavlodar Petrochemical Plant CJSC and Shymkentnefteorgsintez OJSC.
Oil fuels are the end products of oil processing: petrol А-76, А-80, А-85, AI-91-93, AI-96, diesel fuel, boiler fuel (black oil), jet and lighting kerosene, furnace oil, liquefied gas and other oil products.
Legislative initiatives
Code on “Subsoil and Subsoil USE” will be fully developed and submitted to the parliament for consideration in 2015, Nikolay Radostovets, Head of the Association of Mining and Metallurgical Enterprises (AMME), said.
“The Code on “Subsoil” is planned to be developed together with the government in the first half of 2015 and submitted to the Parliament by the end of the year. Government of Kazakhstan and Ministry for Investments and Development lends support in the field of development of mining field”, N.Radostovets said.
The code concept which was considered by all bodies has been developed. In the meantime, AMME initiated a proposal about amendments in the tax legislation. It will give an impulse to processing of raw materials in Kazakhstan.
