23 сентября 2014 20:35

Fuel market risks in Kazakhstan

©Yaroslav Radlovsky

Kazakhstan authorities are trying to find a solution to the lingering fuel deficit that is not going to be lifted any time soon judging from the statement of First Vice Minister of Energy Uzakbai Karabalin who said that Kazakhstani oil refineries could not meet the country's demand for fuel, so a third of all of the fuel consumed in Kazakhstan had to be imported from Russia. Some experts say that the share is even greater and amounts to 40%.

One of the reasons behind the shortage is that domestic oil refineries produce fuel not suitable for most of the cars that are currently in use as they require higher quality gasoline. Everyone agrees that Kazakh oil refineries need to be modernized but it is yet unclear when this would happen.

There is a possibility that the modernization will be delayed, and will be completed only in 2018-2019 instead of the scheduled 2016, Deputy Director of the Agency for Research ROI (AIPS) Artem Ustimenko said.

There are three oil refineries in Kazakhstan: in Atyrau, in Pavlodar and in Shymkent cities. It is planned to build the fourth one but the feasibility study will be ready only in 2015 and the location has not yet been determined.

Russia CIS Customs Union fuel gas gasoline Kazakh Kazakhstan news Oil refinery Central Asia

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