Kazakhstan to significantly lower fuel oil production
Astana, Kazakhstan, Jan.23
By Daniyar Mukhtarov - Trend:
Following the completion of modernising three refineries in Kazakhstan, fuel oil production will significantly decrease, Director General of KazEnergy Association Asset Magauov told Trend.
"Following the completion of the modernisation of the refineries, fuel oil production will significantly decrease from 3.7 million tons to 1.5 million tons," Asset Magauov said.
Magauov recalled that currently the three refineries are under modernisation in Kazakhstan to be completed in 2017.
"In this connection, at present it is necessary to work out measures on transferring generation and boiler rooms operating with fuel oil to alternative types of energy," Magauov said.
Meanwhile, the director general said that in the long term after 2020, the capacity of refineries will not be sufficient to meet the demand for oil products, especially high-octane gasoline creating the necessity to expand them.
He recalled that over 80 percent of gas reserves are concentrated in the three largest fields of Tengiz, Kashagan and Karachaganak where it is associated and mainly used to maintain the reservoir pressure.
"Taking into account the current forecasts of tank gas production and consumption, Kazakhstan is expected to have a deficit from 2023," he said. "Meanwhile, significant volumes of gas can be released after 2030 when the production of liquid hydrocarbons declines at these deposits."
"Kazakhstan must develop and implement fiscal stimulation mechanisms of tank gas production," he said.
Moreover, it is important to continue working to reduce the gas combustion volumes and optimise their use by the subsoil companies in accordance with the construction norms and rules.
"Now it is necessary to limit the gas generation development pace until a stable resource base of tank gas is obtained," Magauov said.
Translated by L.Z., N.H.
Edited by S.M.