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Expert: Issue of oil product export from Kazakhstan can be resolved in July

Oil&Gas Materials 14 June 2013 13:41 (UTC +04:00)

Kazakhstan, Astana, 14 June / Trend D.Mukhtarov /

The question of authorising the export of oil products from Kazakhstan can be most likely resolved in July of this year, analyst at the Kazakhstan Agency on research of profitability of investments Kamilla Manakova said.

"The situation related to permission from the Kazakh oil and gas ministry to export oil products is likely to become clearer in July," Manakova told Trend.

As is known, a ban on the export of certain types of oil such as light distillates and products such as kerosene, gas-oil and other petroleum products is in the force in Kazakhstan till June 1. Every six months Kazakhstan extends this prohibition.

"But this time exceptions to this prohibition are possible in order to unload an oversaturated domestic fuel lubricant materials market. Specifically, this applies to AI-80 petrol. Pavlodar petroleum refinery has already stated that in July it plans to export 30,000 tons of AI-80 petrol to Afghanistan," the expert said.

According to her, there is also a possibility of lessening the ban on the export of AI-92 petrol, whose reserves in petroleum refinery stores exceed the reserves of AI-80 petrol three-fold.

"However, Afghanistan is unlikely to be a potential market for AI-92 gasoline," she said.

Since the beginning of the year, a petroleum surplus was accumulated in the storage facilities of Kazakh oil refineries in 2013. For example, the reserves of AI-92 petroleum amounted to 220,000 tons and Ai-80 petroleum to 65,000 tons. At the same time, as we know, the export of light oil products from Kazakhstan is banned, but the leadership of the petroleum refinery appealed to the government to allow the export of surplus gasoline.

Earlier, Minister of Oil and Gas Sauat Mynbayev said that Kazakhstan may allow the export of AI-80 petrol.

"We consider the issue on the export to be possible. In the near future we will make a proposal for certain volumes of AI-80 petrol," the minister said at a government meeting more than a month ago.

In the first four months of 2013, Kazakh refineries were overstocked with their own products due to the import of Russian gasoline at dumping prices. As previously reported by the Director General of the Pavlodar Petrochemical Plant Shukhrat Danbai, the business was on the verge of being halted several times. To avoid this, the plant shipped about 97,000 tons of AI-80 and AI-92 gasoline to tank farms in Ust-Kamenogorsk, Semipalatinsk, Kostanay, Karaganda, and Petropavlovsk.

In January-April Kazakhstan imported 610,000 metric tons of Russian Euro-2 fuel which is more than half the annual rate. To solve the problem of over-saturation of the domestic fuel market, the Kazakh government restricted the import of a number of petroleum products from the Russian Federation.

Earlier, the Minister of Oil and Gas Saut Mynbaev reported that Kazakhstan may allow the export of A-80 gasoline.

"We consider it possible to export. We will make an offer for certain volumes of A-80 gasoline in the near future," Mynbaev said earlier at a meeting of the government.

At the same time, the weakening of the country's current ban on the export of a number of petroleum products is also possible. Minister of Oil and Gas Sauat Mynbayev said that in the near future the ministry intends to submit a proposal to the government to lift the ban on the export of AI-80 petrol.

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