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KazMunaiGas Head on the 4th oil refinery 04 марта 2014, 12:03

In the second half of 2016 the three oil refineries they will be able to fully meet the domestic demand: Sauat Mynbayev.
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Photo courtesy of munaigaz.kz Photo courtesy of munaigaz.kz
Bulk of petroleum products to be produced at the 4th oil refinery to be built will be exported, Tengrinews.kz reports, citing Sauat Mynbayev, Head of KazMunaiGas National Oil Company. “The actual construction will take 5-6 years (…) it is economically unviable to construct a facility capable of less than 5-6 million tons. Therefore, most of the products will be exported. What are prospective export markets? Russia is an unlikely direction (…) Chinese oil refineries are strong competitors given the cheap labor (…) it’s pretty complicated to send the products to the Western markets due to logistics issues (…), the prospective markets are Uzbekistan, Tajikistan, Kyrgyzstan, Afghanistan, with Russia being present in all of the mentioned countries with its petroleum products (…) We will have to meet competition in these countries’ markets (…), the Company and the Government are doing calculations. I cannot give a more precise answer so far”, he said. KMG Head reminded that Kazakhstan imports about 6-7 million tons of light petroleum products. “We are having the three oil refineries overhauled. Upon completion of the overhaul, the three refineries will be able to produce 7 million tons of petroleum products more. In the second half of 2016 they will be able to fully meet the domestic demand,” he continued. “How much money will be needed to construct the 4th refinery and where does the money come from (…) these are two questions to consider. For the nearest 10 years 75% of oil reserves within Kazakhstan are concentrated at Kashagan, Karachaganak and Tengiz oilfields. The production plateau has already been reached at the so-called old oilfields that have been in operation for 40-60 years, and the oil production output is set to decline (…) the new oil refinery needs careful calculations given that domestic prices are substantially lower than exports prices”, he elaborated.
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