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Kazakhstan’s intention to become international aircraft transit hub hinges on domestic market aviation kerosene prices

Oil&Gas Materials 17 February 2009 20:52 (UTC +04:00)

Kazakhstan, Astana, Feb. 17 / Trend , K.Konirova/

Prices on aviation kerosene on the domestic market will determine whether Kazakhstan will become an international transit hub for aircraft flying from East to West and vice versa, Transport and Communications Ministry Civil Aviation Committee Chairman Muhit Kubayev told Trend.

Prices on aviation kerosene in the oil producing Kazakhstan are 30 percent higher than in oil consuming Europe.

Idea of development of Kazakhstan's transit potential hinges on solution to the aviation kerosene issue, Kubayev said.

"If our prices on aviation kerosene are lower than at airports in Europe and Southeast Asia at least by $100, we will be able to attract for refueling aircraft flying from East to West and vice versa. Thus we will earn huge profits," he said.

Kubayev backed his arguments by concrete calculations. So, 100 tons are required to fill the largest and most popular in the world aircraft Boing-747. Over 100 Boings fly from Europe to Asia and back per day and about 36,400 planes per year. In the case of filling at Kazakhstan airports they will consume more than three and a half million tons of aviation kerosene. During one landing the airport collects roughly $61,000.

"If our Kazakhstan aviation kerosene will be cheaper than in Malaysia, where, according to the latest data, the price of one ton was $420, then taking into account the above-mentioned figure, we could receive huge revenues, which could be directed towards development and modernization of our airport," said Kubayev.

According to him, if Kazakhstan intends to accept the flying transit aircrafts, then 3.5 million more tons of aviation kerosene will be necessary for the internal consumption.

With their current capacity, three Kazakhstan oil refineries can produce only more than 400,000 tons of aviation kerosene. The Republic imports nearly 167,000 tons of this product from the neighboring countries.

According to the data provided by the Committee of Civil Aviation, in Kazakhstan the internal needs for the aviation kerosene over the next two years will double to 895,000 tons. Because in order to become a transit country, at least five million tons of aviation kerosene must be produced in Kazakhstan.

"We have all bases for this, indeed we are oil producing power. And we do not have the reason to convey our oil to the other end of the world, while we can here obtain oil products from it, the same aviation kerosene in the necessary volumes and quality, without spending huge monies on import. Even we can export these products," he said.

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