Kazakhstan set to up volume of oil refining

Oil&Gas Materials 23 February 2018 18:43 (UTC +04:00)

Baku, Azerbaijan, Feb. 16

By Nigar Guliyeva – Trend:

In 2018, it is planned to increase the volume of oil refining up to 16 million tons of oil, Kazakh Energy Minister Kanat Bozumbayev said at an expanded meeting of the ministry on Feb.23.

He said that the volume of oil refining in Kazakhstan amounted to 14.9 million tons in 2017, showing an increase of 2.9 percent compared to 2016.

The minister named completion of reconstruction and modernization projects of two oil refineries, Pavlodar and Atyrau, as one of the key events of 2017.

"In 2018, it is planned to complete the modernization of the Shymkent oil refinery," added Bozumbayev. As the minister noted, all these will allow increasing the volume of oil refining by 1.1 million tons in 2018 up to 16 million tons.

The minister added that domestic market will be supplied with domestically-produced fuel and lubricants to meet, in particular, 90 percent of domestic demand in gasoline, 90 percent - in diesel fuel, 70 percent - in aviation kerosene, and 100 percent - in fuel oil.

As for the construction of the fourth oil refinery, the minister said that the issue will be resolved in the second half of 2018.

Bozumbayev explained that the analysis shows that, taking into account the forecasted growth in consumption, there will be a shortage of gasoline in 2021-2023, diesel fuel - by 2023 and aviation kerosene -after 2026.

"The preliminary feasibility study will be developed by the Kazmunaigas national company under the leadership of the ministry until the second half of 2018. Then, a decision will be made on the possible construction, location and capacity of the refinery," said Bozumbaev.

The minister also noted that Kazakhstan has entered the top twenty countries in the world with the cheapest gasoline.

"In the CIS area, except for Turkmenistan, gasoline is cheaper than in our country, while diesel fuel is cheaper in Azerbaijan and Turkmenistan," said Bozumbayev.