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Wednesday, September 22nd, 2021

K. Bozumbaev: A loan from the EBRD for the construction of a gas pipeline to Astana is currently under consideration

by February 27, 2018 General

Over the years of independence, foreign direct investment in the oil and gas industry of our country amounted to 200 billion USD, including more than 120 billion USD in the development of three largest projects – Tengiz, Kashagan and Karachaganak. Minister of Energy Kanat Bozumbayev announced this today at the Government meeting chaired by Prime Minister Bakytzhan Sagintayev.

Reporting on the issue of attracting investments, Energy Minister Kanat Bozumbaev noted that at present, these three large fields are implementing expansion and extension projects, with a total investment of 42.3 billion USD.

In 2017, amendments were made to the Subsoil and Subsoil Use Code, which provide for measures to stimulate investments in geological exploration and lower investment risks for subsoil users. The Code comes into force in July 2018, at the moment the Ministry of Energy has developed 52 secondary regulatory acts which are in the process of approval.

In the gas sector, there are plans for borrowing funds from the EBRD for the construction of the gas main Saryarka by JSC KazTransGas in order to bring gas infrastructure to the city of Astana, central and northern regions of the country. According to the feasibility study, the total cost of all four stages of the project is 370 billion tenge including VAT, including the first stage to the city of Astana – 267.3 billion tenge including VAT.

In the gas-and-petrochemical industry, the project for the production of polypropylene with a capacity of 500 thousand tonnes per year is in active phase, an EPC contractor has been determined (Chinese company – China National Chemical Engineering Company), funds have been borrowed in the amount of 2 billion USD, and the issue regarding raw materials has been solved. The deadline for completing the construction is 2021.

With regards to the project for polyethylene production with the capacity of 1.2 million tonnes per year, interest in joint implementation was shown by the Austrian company Borealis. In 2018, it is planned to create a joint project company with Borealis and finalize the feasibility study.

According to Minister Kanat Bozumbaev, the implementation of the above projects will attract 9 billion USD of investments, of which 8 billion USD are private, will create up to 10 000 jobs during the construction phase and 1 200 at the operational stage, the contribution to GDP after commissioning will be 1.5%.

In the renewable energy sector, there are 55 operating renewable energy facilities with a total capacity of 335.7 MW. By the end of 2020, it is planned to commission about 52 renewable energy facilities with a total capacity of 2 GW with a total investment of almost 1 trillion tenge. The EBRD plans to invest up to 200 million euro in RES projects, with the possibility of attracting private investments and investments of other international financial institutions to Kazakhstan’s RES for a total amount of up to 480 million euro.

We are working out the possibility of implementing RES projects within the framework of agreemetns with such companies as Eni International BV, General Electric International Inc., EBRD, Samruk Kazyna-United Green, Development Bank of Kazakhstan, CATEC Green Energy , A subsidiary of DBK Source: Kazakhstan 2050 BRK-Leasing , KAZ GREEN TEK SOLAR , Source: Kazakhstan 2050 Kanat Bozumbayev summed up.

Source: Government of the Republic of Kazakhstan