Modernization of two refineries to complete this year
Minister of Energy Kanat Bozumbayev spoke about the progress of modernizing the FEC at the briefing on the results of the Government’s work in the first quarter of this year on implementing the Presidential Address Third Modernization of Kazakhstan: Global Competitiveness.
According to the Energy Minister, the most important projects in the oil and gas industry are the TCO Future Expansion Project, Karachaganak Production Capacity Expansion Project, Phase II of the first stage of the North Caspian Project at Kashagan.
According to the TCO Future Expansion – to date the overall progress of works is 18%. This is a major investment project worth 37 billion USD, which will create 20 thousand jobs for the construction period and open joint ventures. At least 32% of the total cost of the project – 12 billion USD – will be spent on Kazakh goods, works and services, � K. Bozumbayev noted.
The Karachaganak Production Capacity Expansion Project will help keeping oil production at the level of 12 million tonnes per year. Phase II of the first stage of the project at Kashagan includes the construction of a separate artificial sea island and the installation of additional gas re-injection compressors in order to increase productivity. This will create new jobs and increase the level of oil production.
In geological exploration, the Khazar and Kalamkas-Sea fields are planned to be developed jointly with international consortia. Synergy will reduce capital costs and improve efficiency, create jobs, increase oil production, and increase tax revenues.
In the field of oil refining � refineries will switch to an increased intermaintenance period, which will be at least 3 years. This will reduce the cost of repairs up to 10%, as well as increase the processing volume by 300 thousand tonnes per each plant. Modernization of two refineries �Atyrau and Pavlodar � should be completed this year, Shymkent � in the next.
Work is carried out to improve the refineries’ energy efficiency, estimated for the period 2016-2020. The overall effect is a 5-9% decrease in fuel and energy resources from total consumption, which will amount to a saving of 2.3 billion tenge per year after 2020.
Under the OilGasChemistry project, output volumes of high value added products will grow from last year’s 23 billion tenge to 420 tenge. Investments amounting to 9 billion dollars will be attracted for production of polypropylene, polyethylene, polyethyleneterephthalate.
Source: Government of the Republic of Kazakhstan