Following overhaul at three oil refineries Kazakhstan may face excessive supply of petroleum products06 november 2014, 17:02
Vice Chairman of the Board at KazMunaiGas National Oil and Gas Company Daniyar Tiyessov stated that once all the three Kazakhstan-based oil refineries complete their overhaul Kazakhstan might face excessive supply of petroleum products in the domestic market.
“When it comes to the Atyrau-based oil refinery, it is located in the heart of the major oil producing region. That is why we are confident it will always have sufficient crude to process. However, the West of Kazakhstan is a sparsely populated area … and following the overhaul, this region is likely to face excessive supply of petroleum products”, he said when speaking at the sitting of the Nur Otan fraction in the country’s Majilis (lower chamber).
“After the overhaul the Atyrau-based oil refinery will comprise two parts … one will be focused on aromatic hydrocarbons, and the other on advanced petroleum refining. The aromatic hydrocarbons part will enable us to process excessive volumes of crude into paraxylol and benzene”, he said.
Mr. Tiyessov emphasized that the market for petroleum products exports has its limitations. “When it comes to exports potential for petroleum products, let us be frank, Russia is not interested, neither is China. We share border with Azerbaijan and Iran, both of them being self-reliant in terms of crude and petroleum products. The only potential market available for our petroleum products is that of other Central Asia states with a growing population and a shortage of oil processing capabilities of their own. And Afghanistan as well”, he said.
He also stressed the overhaul will enable to improve the processing depth. “That is the key issue. Kazakhstan has been producing insufficient volumes of light petroleum products so far … “, he said.