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Wednesday, February 21st, 2018

K. Bozumbayev announces the Energy Ministry’s plans in light of the tasks set in the Presidential Address

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by January 22, 2018 General

During today’s press conference at the Government press center, Minister of Energy Kanat Bozumbayev announced the performance results of the country’s energy sector for 2017 and elaborated on the plans for 2018, taking into account the tasks set by the Head of State in his Address.

According to Kanat Bozumbayev, with regards to the Presidential Address New Development Opportunities in the Conditions of the Fourth Industrial Revolution, one of the main tactical tasks of the Ministry of Energy is to further develop the resource potential. The main instrument for this is the Subsoil and Subsoil Use Code, the norms of which will come into force in July 2018. At present, the entire subordinate legal and regulatory framework is being worked out.

The subsoil use tax policy has been improved. The Tax Code has come into force on January 1 this year. The adoption of codes and the implementation of all stipulated norms will allow preserving the strategic importance of the oil and gas complex, � Kanat Bozumbayev emphasized.

Speaking about the plans for the current year, the Minister noted that it is planned to introduce an electronic trading platform for the sale of liquefied petroleum gas with the gradual elimination of state regulation of the marginal price. This, according to Kanat Bozumbayev, will improve the mechanism of pricing and distribution of liquefied petroleum gas. The necessary legislative norms will be worked out before December 2018.

The issue of gas infrastructure development in Astana is very relevant; therefore, the scheme and source of financing will be further worked out.

In the petrochemical industry, construction will begin on the Polypropylene Production Project (worth 2.6 billion USD, with a capacity of 500 000 tonnes per year). With regards to the Polyethylene Production Project, one of the largest investment projects (worth 6.5 billion USD, with a capacity of 1.2 million tonnes per year), a study will be conducted to assess the feasibility of attracting loan-based funding, it is also necessary to work out state support measures for investors.

In the electricity sector, the 51st step of the “100 concrete steps” of the Plan of the Nation envisages the consolidation of energy transmission organizations in order to improve the reliability and simplify energy supply in the regions.

In 2018, 15 energy transmission organizations should cease their activities. In general, it is expected that the number of energy transmission organizations will be reduced 30% by 2022, in other words – from 160 to 110, � Kanat Bozumbayev said.

Phase II of the 500 kV Shulbinskaya HPP Semey-Aktogay-Taldykorgan-Almaty line will be completed within the framework of the Nurly Zhol Program. Thus, the interregional project North – East � South will be fully completed by the end of 2018. The project is aimed at eliminating the electricity deficit in East Kazakhstan and Almaty regions and strengthening energy independence.

Qualitative changes are also planned for the green energy market. The renewable energy market is growing every year; 1.1 billion kWh was generated in 2017, which is 22% more than in 2016. The plan for 2018 is 1.7 billion kWh (155% of 2017). This year, it is planned to introduce 10 renewable energy sources with a total capacity of 123 MW (5 facilities in 2017).

In general, the development of renewable energy and environmental protection has been given a lot of attention in the Address of the Head of State. The main tasks and plans for 2018 are set, the workflow is established, the Ministry will use all resources to achieve them, � K. Bozumbayev concluded.

Source: Government of the Republic of Kazakhstan

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