During the Government meeting chaired by Prime Minister Bakytzhan Sagintayev, Minister of Energy Kanat Bozumbayev reported on the plans for the execution of tasks given by the Head of State at the extended Government meeting on 09.02.2018.

Kanat Bozumbayev reported on plans for the construction of the 4th oil refinery. According to the Minister of Energy, a working group has been set up to work out options for constructing the oil refinery, financing it, the timeframes, negotiations with potential investors. The corresponding Roadmap will be developed and presented at the meeting of the Interdepartmental Commission on February 15 this year.

Speaking about the implementation of gas-chemical projects, the Minister noted that the Samruk-Kazyna Fund is implementing two large gas-chemical projects for the production of polypropylene and polyethylene with a total cost of 9 billion USD, which are provided with systemic measures of state support.

With regards to the first project - production of polypropylene with a capacity of 500 thousand annually – the issues of providing raw materials have been resolved, barriers on procedures for attracting foreign labor, the application of international norms in the design and construction have been removed at the legislative level.

At the end of 2016, an EPC contract was concluded with the Chinese company CNCEC, in 2017, a design document was developed and a notice was given to the general contractor about the commencement of construction work.

110.7 billion tenge was allocated for the construction of the infrastructure of the petrochemical SEZ (in Atyrau). Today, detailed engineering is being carried out for the project, there are preparations to order equipment with long-term production times. In 2018, Samruk-Kazyna plans to begin pile and foundation works, as well as lay underground engineering networks. The construction completion date is 2021.

Regarding the second project for the production of polyethylene with a capacity of 1250.0 thousand tonnes per year and costing 6.5 billion USD, on February 7, the strategic partner Borealis (Austria) presented the results of preliminary feasibility studies, noted the terms of priority measures such as the signing in March of a memorandum with Government of the Republic of Kazakhstan. In the same month, it is planned to set up a joint company to launch a feasibility study. The feasibility study is expected to be completed by the end of 2018.

“For the purposes of setting up gas infrastructure in Astana, central and northern regions, KazTransGas has developed a feasibility study for the Saryarka main gasline project. There is a positive expert appraisal. We are currently working out the issue of financing the project through borrowing from the EBRD,” – Kanat Bozumbayev reported.

In this regard, an interdepartmental working group is being formed with the participation of representatives of the Ministries of National Economy, Finance, the Astana Akimat, Samruk-Kazyna, KazMunayGas, KazTransGas to determine the conditions and scheme of financing for the Saryarka gas main.

Socio-economic impact of the project:

- Conversion to gas powered heat generation in Astana of 192 private boiler houses, 48 ​​small communal boiler houses, private residential sector (about 22 thousand plots), and water-heating boilers of CHP-1,3 from diesel fuel to gas;

- Improvement of the environmental situation in Astana, according to estimates – emissions will be reduced by 34.6 thousand tonnes /year.

In addition, there will emerge an opportunity for the development of infrastructure along the main gas pipeline route, as well as for the creation of new productions using natural gas.

Kanat Bozumbayev noted that in 2018, work will be carried out to further reduce the marginal tariffs for electricity.

“The Ministry is forming an interdepartmental working group with the participation of representatives of the Ministry of National Economy, other concerned bodies and NCE Atameken in order to review the marginal tariffs for electricity,” – the Minister said.

Kanat Bozumbayev reported on the coal situation.

According to operational data, 12.7 million tonnes of coal were produced since the beginning of 2018, which is 96.8% compared with the same period of last year (13 136.4 thousand tonnes).

From the beginning of 2018 coal-mining enterprises shipped:

- To electric stations - 7.3 million tonnes of coal.

- For public utilities and to the population - 1.2 million tonnes of coal.

- For export - 3 million tonnes of coal.

“In order to establish systematic coal supply, local executive bodies need to carry out daily monitoring of coal supply, sales and surplus at the points of sale and on a daily basis submit information to the Ministry of Energy's headquarters in a special form. The information will be further sent to the Government on a weekly basis,” – Energy Minister Kanat Bozumbayev summed up.

www.primeminister.kz

Published: 13 February 2018

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