Energy Policy of Kazakhstan

Ministry of Energy and Mineral Resources of
the Republic of Kazakhstan
Energy Policy of Kazakhstan
London
15 March 2006
RUSSIA
Astana
KAZAKHSTAN
eC
UZBEKISTAN
i
asp
GEORGIA
KYRGISTAN
an
a
se
TURKEY
th
the Black
sea
AZERBAIJAN
TURKMENISTAN
TADJIKISTAN
IRAN
Ministry of energy and mineral resources of the Republic of Kazakhstan
CHINA
ROLE OF KAZAKHSTAN
ƒ For the purpose of strengthening global energy security, Kazakhstan
together with other countries acts by way of:
• Keeping a dialog between energy consuming and energy producing
countries, cooperating with oil companies from many countries of
the world
• Reducing instability of oil market - on the basis of predictable
policy
• Further diversification of energy resources transportation routes
• Improving business and investment climate
Ministry of energy and mineral resources of the Republic of Kazakhstan
3
GUIDING LINES OF KAZAKHSTAN’S ENERGY POLICY
The guiding lines of Kazakhstan’s energy policy are an energy security,
energy efficiency and environmental safety. Therefore, the long-term
governmental energy policy is built on:
• a clear-cut and consistent activities of the Government of
Kazakhstan on realisation of energy policy
• commitment to establishing strong and sustainable companies open
to a constructive dialogue
• adherence to predictable and transparent investment policy
• the key areas of cooperation between the Government and private
businesses include the joint development of infrastructure and
export
Министерство энергетики и минеральных ресурсов Республики Казахстан
4
HYDROCARBON POTENTIAL OF
THE REPUBLIC OF KAZAKHSTAN
ƒ Approve d by SCR (State Committee on Resources) re cove rable hydrocarbon
rese rves of the Re public of Kazakhstan onshore are :
crude oil
- 32.8 billion barrels (4.5 billion tons)
natural gas
- 3.0 trillion m 3
ƒ By hydrocarbon rese rves, Kazakhstan ranks among te n le ading countries in the
world
ƒ Hydrocarbon rese rves of KSCS (Kazakhstan Se ctor of the Caspian Sea) are ove r
60 billion barre ls (8 billion tons) of standard fuel
ƒ By e xplore d nature gas rese rves, Kaz akhstan ranks 15th in the world
ƒ Proje cte d rese rves for Kashagan de posit are :
natural gas
crude oil
geological
- around 3 trillion m3
geological - 35,5 bln bls (4,8 bln tons)
re cove rable
- more than 1 trillion m3 re cove rable - 12 bln bls (1,6 bln tons)
ƒ The largest e xplore d rese rves of natural gas dissolve d in crude oil are
concentrate d in large de velope d de posits such as Karachaganak, Tengiz ,
Zhanaz hol, Urikhtau
Ministry of energy and mineral resources of the Republic of Kazakhstan
EXPECTED OIL AND GAS PRODUCTION
ƒ Prospects for increase of hydrocarbon producti on volume in
Kazakhstan depend on realisation of the state program for
development of Kazakhstan sector of the Cas pian Sea
ƒ Expected production
in 2006
crude oil – around 1,3 millions barrels per day
(or 62.5 million tons per year)
natural gas - 27,5 billion cubic meters per year
in 2010
crude oil – around 1,8 millions barrels per day
(or 90 million tons per year)
natural gas – 52,5 billion cubic meters per year
By 2015
crude oil – up to 3,0 million barrels per day
(or 150 million tons per year)
natural gas – 79.4 billion cubic meters per year
Ministry of energy and mineral resources of the Republic of Kazakhstan
MAIN DEPOSITS OF HYDROCARBONS
Орал
Карачаганак
Атырау
Актюбе
Астана
Жанажол
Курмангазы Кашаган
Тенгиз
Актау
Узень
Кумколь
Кызылорда
Ministry of energy and mineral resources of the Republic of Kazakhstan
Kazakhstan
Northern Zone
RUSSIA
resources – 48,5 bln. bls
ATYRAU
DISTRIBUTION OF THE
PROJECTED
RESOURCES BY ZONES
OF KAZAKHSTAN
SECTOR OF THE
CASPIAN SEA
Central Zone
BAUTI NO
FHORT- SHEFCHENKO
resources –7.5 bln.bls
AKTAU
ZHANAO ZEN
Southern Zone
resources – 4 bln.bls
TURKMENISTAN
AZERBAIJAN
Ministry of energy and mineral resources of the Republic of Kazakhstan
STATE PROGRAM FOR DEVELOPMENT OF KSCS
TASKS:
ASSESSMENT OF OIL AND GAS PERSPECTIVE
STRUCTURES;
INTENSIVE DEVELOPMENT OF OIL PRODUCTION
LAUNCHING NEW FIELDS INTO OPERATION;
CREATION OF FAVOURABLE CONDITIONS FOR
ATTRACTING INVESTMENTS;
PRESERVATION OF ECOLOGICAL BALANCE
Ministry of energy and mineral resources of the Republic of Kazakstan
9
E NV IR ON M E NT A L AS P E C T S
Strict control and adoption of advanced technologies will allow to
avoid destabilisation impact of offshore oil and gas operations on
environment of the Caspian Shelf:
use of environmentally clean and
safe technology;
use of certified transport carriers,
equipment and materials;
ensuring principle of «zero
pollution» of the sea;
providing utilization of industrial
and domestic waste and associated
gas
Ministry of energy and mineral resources of the Republic of Kazakstan
TRANSPORT INFRASTRUCTURE
ƒ Kazakhstan has a comparatively developed infrastructure for oil and gas
transportation from the producing regions
ƒ Export routes:
- oil pipeline CPC
- oil pipeline Atyrau-Samara
- oil pipeline Atasu - Alashankou
- Port of Aktau
In order to expand export potential a project is being realised for creation of
national tanker fleet of the Republic of Kazakhstan. Two tankers already are
built and floated from Vyborg ship-ways in December 2004 and the beginning
of 2005
Ministry of energy and mineral resources of the Republic of Kazakhstan
11
DEVELOPMENT OF TRANSPORT INFRASTRUCTURE
Astana
Темиртау
Караганда
Atasu
НПС-7
(Ата с у )
Агадырь
Акчатау
Мойынты
ТСБ
Кошка
р
НПС 9
Balkhash
Эмельта
у
Жаксыбулак
Саяк
Айгы
з
Актога
й
Учарал
Camp
Taldy-Kurgan
Alashankou
Druzhba
Almaty
¾
¾
¾
In September 2004 started and in December 2005 was completed the construction of oil export pipeline
Atasu-Alashankou from Kazakhstan to Chine
Currently the pipeline is being filled in by oil
Construction of the pipeline Atasu-Alashankou economically sound and provides diversification to oil
transportation routes
Ministry of energy and mineral resources of the Republic of Kazakhstan
12
PПРОЕКТЫ
R O J E C TНЕФТЕПРОВОДОВ
E D O I L P I P E L I NE S
RUSSIA
PAVLODAR
AST AN A
EXIST ING AT ASU- AL ASH ANKOU PIPEL INE
EXIST ING ATYR AU-KENKYAK PIPELINE
KAZAKHSTAN
ATYRA
U
PROJECTED KENKIAK-KUMKOL PIPELINE
AKTAU
UZBEKIST AN
AKT AU-BAKU-JEYHAN
GEOR GY
ALMATY
SHYMKENT
KYR GIST AN
AZERBA DZHA N
TURK MENIST AN
TURKEY
IRAN
AKT AU-TEHER AN
TADZHI KIST AN
CHIN A
P R O JE C T E D G A S P IP EL I N ES
RUSSIA
KOKSHETAU
AST AN A
PAVLODAR
AKTOBE
ATYRA
U
KAZAKHSTAN
AKTAU
UZBEKIST AN
ALMATY
SHYMKENT
KYR GIST AN
GEOR GY
AZERBA DZHA N
TURK MENIST AN
TURKEY
IRAN
TADZHI KIST AN
CHIN A
OIL AND GAS PROCESSING
Pavlodar oil proccesing plant
Capacity- 7.5 mln. t./year
PETROPAV LOSK
KUSTANAI
KOKSHETA U
PAVLODAR
URALSK
ASTA NA
Atyrau oil proccesing plant
Capacity– 4.5 mln.t/year
AKTOBE
UST-KA MEN OGO RSK
Zhanazhol gas proccesing plant
Capacity – 0.7 bln.cubic/year
KARAGANDA
ATYRAU
Tengiz gas proccesing plant
Capacity– 3 bln.cubic m/year
AKTAU
TAL DIKO RGAN
KYZI LORDA
Kazakh gas proccesing plant
Capacity– up to1.5 bln.cubic m/year
ALM ATY
TARA Z
SHIMKEN T
PetroKazakhstan Oil Products
Capacity– 6.5 mln. t./year
15
DEVELOPMENT OF PETROCHEMISTRY
•
O rganisation in oil and gas producing re gions of the We ste rn Kaz akhstan “point
of growth” for pe trochemical industry of Kaz akhstan on the basis of hydrocarbon
raw mate rials
•
Processing of hydrocarbon raw mate rials: associate d gas from de velope d (Te ngiz ,
Korole vskoe ) and pre pare d for de velopment (Kazhagan) fields producing basic
pe trochemical produce (e thane , e thylene , polyethyle ne, styrene e ct.)
•
Cre ation of ne w pe trochemical manufactures for production of pe trochemicals
with high adde d value
•
Re construction of factories in Atyrau and Aktau and re commenceme nt of their
ope rations
Ministry of energy and mineral resources of the Republic of Kazakhstan
16
INVESTMENT PREFERENCES FOR PETROCHIMESTRY
¾ Program for development of petrochemical industry of the Republic of
Kazakhstan for 2004-2010 approved by the resolution of the
Government of RK dated 29 January 2004, № 101
¾ Tax code is added with a clause 119-1 “Taxation of indi vidual
enterprises operating in petrochemical industry” giving privileged
regime for corporative income tax on investment projects for creation of
petrochemical enterprises during 5 years from the moment of launch
into operation
¾ A project of legislative act has been developed, giving preferences for
privileged taxation for the period of over 5 years
¾ For
attracting investments into construction of petrochemical
manufactures the Ministry is planning to form National industrial
petrochemical techno park in Atyrau region using advantages of special
economic zone
Ministry of energy and mineral resources of the Republic of Kazakhstan
17
STRATEGY FOR INDUSTRIAL AND INNOVATIVE DEVELOPMENT
OF RK FOR 2003-2015
ƒ Priorities of industrial and innovati ve policy are development and
creation of potenti ally competiti ve including export orientated
producti on functi oning in non raw material areas of the economy
ƒ The main aim of the Strategy is achievement of stable development
of the state by way of di versification of the economy from raw
material orientati on
ƒ The Strategy is directed at increasing of scientific technical,
innovati ve and industrial potential in promising development
directions that shoul d promote creati on of fundamentally
competiti ve advantages in the future
ƒ Today Kazakstan possesses scientific fundament that allows to
develop science intensive productions based on the nati onal
inventions, in a number of areas
Ministry of energy and mineral resources of the Republic of Kazakhstan
DYNAMICS OF INVESTMENTS INTO OIL AND GAS SECTOR (MLN. $)
10000.0
9000.0
7715.4
8000.0
7000.0
6000.0
4810.2
5000.0
3492.7
2990.72 5 90 .6 3 0 09 .9
4000.0
3000.0
2000.0
1000.0
6 0946.9
3.4
2129.0
1477.3 2032.6 1 75 5.3 1 99 0.9
89 9 .6
5 7 7.727 7 .3
34 3.5
1 3 8.1
4 00 .1
4 82 .8
5 90 1 .7
5275,5
43 6 6.7
4 59 5 ,7
1 81 3 .7
44 3 .5
8796.3
7 17 4.1
1 62 2.2
6 7 9.8
0.0
1 9 96
1 99 7
19 9 8
Dom estic
19 99
2 0 00
2 00 1
Foreign
Ministry of energy and mineral resources of the Republic of Kazakhstan
20 0 2
20 03
2 0 04
9 mon ths
2 00 5
Total
19
ELECTRIC POWER INDUSTRY
• National company “Kazakhstan Electricity Grid
Operating Company” (KEGOC) – a technical operator of
the power energy system
• Regional electricity network companies – regional control
centers
• Power producers – independent and integrated with large
industry consumers
• 80% of electric and heat energy in Kazakhstan is
generated from usage of coal
Ministry of energy and mineral resources of the Republic of Kazakhstan
COAL INDUSTRY
Kazakhstan by proved reserves takes 8th place in the world. The most valuable
for industry thermal and coking coal concentrated in 16 fields.
Reserves of coal – 35 billion tons.
The most coal reach basins are Karagandinski, Ekibaztuzkii, Maikubenskii.
Coal production is done by 33 sub surface users.
Kazakhstan ranks in the top ten world producers and exporters of coal
In 2005 it was produced 86.4 million tons of coal
By 2015 it is forecasted an increase in coal production for up to 100 million
tons
Works are being undertaken on introduction of technology for deep processing
of coal (gasification, synthetical liquid fuel, chemical products)
Ministry of energy and mineral resources of the Republic of Kazakhstan
21
MAIN DEPOSITS OF COAL
Eginsai
Kushmurun
Ekibastuz
Astana
Maikuben Yubileinoe
Karagandy
Shubarkol
Karagandy
Zhalyn
Ministry of energy and mineral resources of the Republic of Kazakhstan
ATOMIC INDUSTRY
ƒ At the present time uranium production exceeds the level of 1997
by 4 times that brings the republic to a leading world position in
uranium market
ƒ Production continues to grow steadily: an annual level of increase
in production is on average around 12%
ƒ Partnership relationship with foreign companies in atomic
industry are successfully developing
ƒ In 2004 a “Program for development of uranium industry of the
Republic of Kazakhstan for 2004-2015” was approved that at
present time successfully implemented
Ministry of energy and mineral resources of the Republic of Kazakhstan
URANIUM
Around 21% of world uranium reserves is concentrated in Kazakhstan,
out of which 75% can be extracte d at the most profitable , high technological and
environmentally save method –subterranean lixiviation
Proportion of uranium reserves and extraction in the w orld
RESERVES (proved)
EXTRACTION
21,9%
21,2%
30,0%
31,5%
10,2%
5,3%
21,0%
25,7%
8,5%
3,5%
6,6%
3,1%
7,0%
4,5%
Australia
Canada
US A
Uzb ekista n
Russia
Kazakhstan
Total world reserves 4’200’000 tons of uranium
World extraction is 32’000 tons of uranium
Ministry of energy and mineral resources of the Republic of Kazakhstan
Other countries
WIND-POWER ENGINEERING
From ge ographical and mete orological points of vie w Kaz akhstan is one of the
most suitable countrie s in the world for gene ration of gre at volumes of ele ctric
powe r on the basis of use of wind-powe r enginee ring
In 1997 a proje ct "Accele ration of de velopment of wind-powe r enginee ring in
Kaz akhstan" was realise d on an agree ment be tween the Gove rnme nt of
Kaz akhstan and the Unite d Nations De velopment Program
In the frame work of the proje ct a me teorological rese arch was carrie d out for two
ide ntifie d place s - Dz ungarian Gates and Chilikskii corridor in Almaty area
The results of the re search re ve ale d: significant wind potential in Chilikski
corridor and Dzungarian Gate s have been ide ntifie d as one of the be st place s in
the world for de velopment of wind-powe r enginee ring
A proje ct of the Gove rnment of Re public Kaz akhstan and UNDP/Global
Ecological Fund (GEF) "Kaz akhstan: initiative of de velopment of the wind-powe r
enginee ring marke t“ was pre pare d
The proje ct, realiz ation of which began in 2004 is dire cte d at rende ring of
te chnical help to Kaz akhstan in pre paration of the De velopment Program for
wind-powe r e nginee ring and construction of demonstrative wind-powe r station
with a capacity of 5 MV in are a of Dzungarian Gates
Ministry of energy and mineral resources of the Republic of Kazakhstan
25
PRINCIPLES OF INVESTMENT POLICY
Attraction of direct investments into Kazakhstan is based on abi ding the
following basic concepts of the state investment policy:
• Stability and predictability
• In conformity with world standards clear, transparent and unambiguous
legal regulations of investments
• Protection of investor’s legal rights
• Equal terms for activity of foreign and domestic investors
• Observance of contracts’ and international agreements’ terms
• Profitability and efficiency of direct investments
• Stimulation of direct investments into priority sectors of the economy
• Provision of informational transparence of the domestic stock market
and equal terms of activity for different groups of investors
Ministry of energy and mineral resources of the Republic of Kazakhstan
26
BRITISH EXTRACTIVE INDUSTRIES
TRANSPARENCY INITIATIVE
Kazakhstan is supporting and carrying work on implementation of British
Extractive In dustries Transparency Initiative (EITI)
On 5th October 2005 a Memorandum of understanding on Initiative
implementation in Kazakhstan was signed
As of today, the Memorandum was joined by 38 extractive companies operating
in Kazakhstan and by 52 associations of non-governmental organizations (NGO)
which represent interests of more than thousand social organizations of
Kazakhstan
A National S takeholders’ Council on implementation on EITI was established it
consists of deputies of Parliament of RK, representatives of working group,
companies and NGOs
Kazakhstan’s Legislation does not allow to force the companies to sign the
Memorandum, because our country is strictly abiding to the principles of
stability of company’s contracts
A vital role in realisation of the Initiative is played by Deputies of the Parliament
of the Republic of Kazakhstan, Kazakhstan’s NGOs and civil society
Ministry of energy and mineral resources of the Republic of Kazakhstan
27
C ONC LUS IO N
•
Base d on strategic inte re sts Kaz akhstan intends:
• To promote furthe r growth of mutually bene ficial e conomic and trade
relations
• To attract investments into capital-intensive proje cts in sphe re of
pe trochemical and oil and gas industry de velopment
• To e stablish joint ente rprises for manufacture of oil and gas e quipme nt
• To pro vide for maximal attraction of Kazakhstan’s companies and
spe cialists to re alisation of fuel and ene rgy comple x’s proje cts
• To provide stimulation for de velopment of small and me dium size d
busine ss
•
Large scale proje ct are planne d and implemente d in Kazakhstan
•
Conside rable investments are attracte d, estimate d in tens of billions of USD
•
The Re public of Kazakhstan is open for a dialogue on coope ration and
re alisation of joint proje cts in fuel and ene rgy comple x
Ministry of energy and mineral resources of the Republic of Kazakhstan
28