ASTANA, Kazakhstan, May 6. Aktobe Refinery in Kazakhstan is weighing its options to spread its wings in foreign markets, but it’s not all smooth sailing as it grapples with a host of hurdles that are throwing a wrench in the works of industry growth.
General Director of Aktobe Refinery Timur Batrymbetov spoke to Trend in an exclusive interview on the sidelines of the Caspian and Central Asian Forum on Oil Trade and Logistics in Baku.
As he pointed out, one of the main topics of discussion is the position of Kazakh producers of marine fuel in the Caspian region markets.
“Our marine fuel is known for its high quality - it meets international standards, including sulfur content not higher than 0.1 percent,” Batrymbetov said.
However, he added that in recent years, Kazakh producers have been losing their positions in the markets of Russia and Kyrgyzstan, which are saturated with cheap Russian diesel fuel.
“We simply cannot compete with dumping prices, and this complicates the sales of our product,” he explained.
To solve this problem, Aktobe Refinery is considering new sales
channels through the port of Aktau and cooperation with local
bunkerers in the Caspian region. Batrymbetov expressed confidence
that Kazakhstan can occupy its niche in these markets by offering
quality fuel that meets international standards.
In addition, Batrymbetov touched on the importance of government
initiatives to support private refiners. He said that restrictions
have been placed on the export of Kazakhstani straight-run
gasoline, limiting opportunities to expand foreign trade.
“We produce straight-run gasoline, but its export in Kazakhstan is prohibited. I think it would be reasonable to allow its export upon payment of state duty, as it is done in Russia,” he emphasized.
In Russia, Batrymbetov said, such plants can supply products to Kyrgyzstan or Uzbekistan, for example, by paying the duty, which would contribute to more efficient development of the industry, he said. In addition, the plant is actively developing the export of fuel oil, which has already established itself as a premium product in the Azerbaijani market.
“Our fuel oil is well known in Azerbaijan due to its quality -
low sulfur content (up to 0.5 percent) and solidification
temperature of minus 35 degrees Celsius,” said the general director
of the refinery.
He said that the Caspian and Central Asian Forum held the first
business negotiations with Azerbaijani companies, including units
of state oil company SOCAR, to expand cooperation.
“Now we are negotiating with SOCAR, and we believe that our cooperation can be mutually beneficial,” Batrymbetov said, emphasizing that cooperation with Azerbaijani companies and traders using SOCAR's infrastructure is already actively unfolding.
According to him, the plant's products are delivered to the ports of Kulevi and Batumi, which opens up additional opportunities for expanding presence in the Caspian region markets.
As luck would have it, in the face of tough times and price wars, Kazakhstani refineries like Aktobe Refinery are rolling up their sleeves and looking for fresh avenues to solidify their foothold in foreign markets and broaden their export horizons. Batrymbetov expressed hope that the Kazakh government will revise some rules and support domestic producers, creating more flexible conditions for the development of oil refining in the country.