Tuesday, 11 August 2020, 12:44:01
At the government session chaired by Prime Minister Askar Mamin, the results of the country's socio-economic development and the execution of the republican budget for January-July 2020 were considered. Minister of Energy Nurlan Nogayev reported on the state of the country's energy complex.
At the end of January-July 2020, the volume of oil and condensate production amounted to 51.5 million tons, which is 1.4% lower than the indicators of the corresponding period of 2019.
“The reason for the failure to fulfill the production volume plan is as follows: the introduction of quarantine in many countries in order to prevent the spread of coronavirus, respectively, the decline in economic activity contributed to a faster increase in supply than demand for oil and oil products,” Nogayev noted.
The imbalance was significantly affected by the intensive growth of world savings in oil and oil products. To meet such a need, there was a threat of stopping production due to a lack of volumes of tank farms. In order to prevent the overflow of oil depots, measures were taken to reduce production.
Oil exports amounted to 42 million tons or 100.4% compared to the corresponding period of 2019.
Gas production for the reporting period amounted to 33.4 cubic meters. There is an increase of 1% over the corresponding period of the last year.
Domestic consumption of natural gas amounted to 9.5 billion m3 or 102% compared to the corresponding period of 2019.
Production of liquefied petroleum gas amounted to 1.8 million tons or 100.5% compared to the corresponding period of 2019. Of these, 938 thousand tons were used in the domestic market.
“A joint order was adopted by the Ministries of Energy and National Economy to approve maximum prices for retail sales of liquefied petroleum gas. The implementation of this order allowed stabilizing the prices for liquefied gas used as fuel for vehicles. As a result of the systemic measures taken, the retail prices for liquefied gas at the filling station were reduced,” the minister said.
In particular, the average prices for liquefied petroleum gas in the regions decreased from 2% to 32%, and in Kazakhstan — by 12%.
The production of petroleum products in January-July 2020 amounted to 6.4 million tons.
To date, the production of petroleum products shows growth in comparison with the plan for the reporting year. In particular, 2.5 million tons of gasoline, 2.5 million tons of diesel fuel, 253 thousand tons of aviation fuel, 1.1 million tons of fuel oil, 539 thousand tons of bitumen were produced.
The reason for the growth in the volume of oil products is the provision of deep oil refining as a result of the modernization of oil refineries. Today the domestic market is fully provided with petroleum products of its own production.
The following support measures have been taken in the field of fuel energy:
- abolition of the ban on the export of oil products by road outside the Republic of Kazakhstan and the countries of the Customs Union;
- excise duty exemption for producers of excisable goods for gasoline and diesel fuel sold for export;
- introduction of a ban on the supply of gasoline, diesel and aviation fuel to the Republic of Kazakhstan by rail, road and pipeline transport;
- zeroing of the rates of export customs duties on oil products, including gasoline, diesel fuel and fuel oil;
- unscheduled inspections and preventive control with visits to all business entities (with the exception of permits control) were suspended;
- Ministry of Energy amended the Rules for the acquisition by subsoil users and their contractors of goods, works and services used in the exploration or production of hydrocarbons and uranium mining, allowing subsoil users to purchase goods of Kazakhstan origin from one source without holding competitive procedures, confirmed by the certificate ST-KZ or an industrial certificate issued by the Atameken National Chamber of Entrepreneurs.
The volume of production of oil and gas chemical products amounted to 248 thousand tons, which is 61% more than the same period last year. The plan for this year is 400 thousand tons.
During the reporting period, 61.5 billion kWh of electricity was produced, which is 101.7% compared to the corresponding period of 2019. It is noted that the production of electricity is directly related to the volume of energy consumption. To date, no major emergencies have been registered.
The volume of uranium production amounted to 11,873 thousand tons, which is 101.5% of the plan for January-July 2020.