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Friday, September 17th, 2021

Modernization of refineries to eliminate import dependence on petroleum products

by March 2, 2017 Legal

The Minister noted that modernization of Pavlodar and Atyrau refineries will be completed in the second half of 2017 and the completion of the modernization of Shymkent plant is planned in the first half of 2018.

“In his address, the Head of State stressed the need to increase the volume of oil refining. Modernization of our refineries will increase the production of light oil, gasoline, diesel fuel, jet fuel, ” said the Minister.

Thus, the Ministry expects the full provision of domestic needs of the country’s domestic oil products and excludes import dependence on the number of lubricants in 2019.

To date, there is a 30% dependency on the domestic market of the Russian Federation. If 70% of the needs met by our three refineries, then 30% of the fuel imported from outside. Ability to import from the outside is only available from the Russian Federation, the Minister said. At the same time, Kazakhstan can not affect the wholesale prices of the Russian Federation. The only way out of this situation is to complete modernization of plants faster.

“Of course, we can fix the price at the pump again. But where it leads? Russian wholesalers will not be able to bring it here, because they will not carry it without any benefit for themselves. Then begins a 30% deficit in gas stations. We have already passed such a scenario. It is true that price for gasoline is more expensive, but we have it. And it’s better than when gasoline is cheaper and we do not have it. If the deficit appears, hence the quality of fuel will be poor, ” said the Minister.

According to him, depending on the pricing, situation on the Russian market will remain until they are modernized domestic refineries.

“Last year, I traveled to all three plants, the tasks set for the respective companies, there is moneyance, equipment, the optimistic mood. Since last year, we have accelerated the pace of work in all three areas, ” concluded K.Bozumbayev.

Source: The Prime Minister of Kazakhstan