Kazakhstan's production of primary energy resources to grow in 2022

Oil&Gas Materials 29 October 2021 19:41 (UTC +04:00)
Kazakhstan's production of primary energy resources to grow in 2022

BAKU, Azerbaijan, Oct. 29


Kazakhstan remains a net exporter of primary energy resources (mainly crude oil), Trend reports citing Kazenergy association’s analytical report.

“At the same time, amid the COVID-19 pandemic, net exports of primary energy resources from Kazakhstan decreased more sharply than their consumption within the country, as a result of which the share of the total volume of production of primary energy resources supplied to domestic markets increased to 50.1 percent in 2020 against 49.3 percent in 2019,” said the report.

“Looking ahead, we expect that during the forecast period, the share of production consumed domestically will average 52 percent (and will reach 61 percent in 2050). The total production of primary energy resources in Kazakhstan, which includes oil, gas, coal and primary electricity (doesn’t include mined uranium), decreased by 4.2 percent in 2020 to 178.7 Mtoe [million tons of oil equivalent], because in the past year only the production of primary electricity (that is hydropower and renewable energy sources) increased by 6.7 percent to 2.7 Mtoe,” said the report.

According to Kazenergy, the production of oil and natural gas fell especially sharply (by 5.4 percent to 85.7 Mtoe and by 7.4 percent to 28.5 Mtoe, respectively), while coal production decline was less significant (only by 1.4 percent to 61.7 Mtoe).

“The decline in aggregate primary energy production in 2020 followed a three-year period of growth; at the same time, the average annual total production of primary energy resources from 2000 through 2019 impressively grew up to 4.1 percent,” Kazenergy said. “In 2021, we forecast a further, but less significant, net reduction in primary energy production (by nearly 2.2 percent), after which the production will return to the growth trajectory in 2022 and will again exceed the 2019 level in 2025.”

“It’s anticipated that in the same year it will reach a maximum level at nearly 193.5 Mtoe, and then begin to progressively decline to 142.9 Mtoe in 2050 (net decline in 2021-2050 will be 20 percent). The main share in the expected decline in the production of primary energy resources over the forecast period will fall on coal production," Kazenergy said.

The total consumption of primary energy resources in Kazakhstan in 2020 dropped by 2.7 percent to 89.5 Mtoe, thus reflecting a particularly sharp drop in oil demand (by 12.3 percent to 15.8 Mtoe), as well as a decline in coal consumption (by 0.9 percent to 49.8 Mtoe). At the same time, consumption of natural gas increased by 0.2 percent (to 21.3 Mtoe), and primary electricity consumption by 7.5 percent (to 2.6 Mtoe), said the report.