Atyrau, February 19 09:53
Daydull-5, evening: -8
Official exchange rates: $ 376.26  € 425.63  P 5.68

​We shouldn't depend only on “big three” - Kashagan, Tengiz, Karachaganak

July 9 2015, 11:55

By Laura Suleimenova

Image 0Kazakhstans' KAZENERGY Association uniting more than 70 major players in the oil, gas and energy business issued its information bulletin for June 2015.

The Chairman of the Association is Timur Kulibayev. Association website reads that the Chairman of the Association represents the interests of the Association and its members in state bodies, unions of legal entities, foreign and international organizations. He forms the Association Board and the Executive Committee. Deputy Chairman of the Association - Jambulat Sarsenov, According to the Charter, acts as Chairman during his absence. The Executive Committee's activities are managed by the General Director Asset Magauov.
We outlined key issues from the information bulletin.

CHINA BECAME THE GREATEST IMPORTER OF OIL IN THE WORLD HAVING GONE AHEAD OF THE USA

At the next Strategic Expert Club's meeting the issue of discussion was “New Silk Road and its Influence on Energy Sector of the Republic of Kazakhstan".

The meeting of the Club was attended by representatives of KAZENERGY Association, research companies IHS Energy, Wood Mackenzie, National Company KazMunaiGaz and other oil and gas companies (BG Kazakhstan, PSA etc.).

The main speaker was the Managing Director of IHS Energy Matthew J. Sagers, who is one of the world's leading experts of energy in the Caspian region.

In his speech, Mr. M. Sagers presented his vision on the prospects of the initiative “New Silk Road" in the context of further expansion of economic ties, development of transport infrastructure, growth of investment flows in the Eurasian continent. In particular, he noted the great development potential for oil and gas infrastructure under the present economic and geo-political conditions.

Thus, in April 2015, China became the greatest importer of oil in the world having gone ahead of the USA in this parameter for the first time. The average volume of oil purchased by China reached 7.4 million barrels per day, whereas more than 58% of the oil demand of the country is covered by import. Experts predict that China's oil demand will grow on average by 3.4% per year until 2020.

Besides, the development of energy infrastructure in Eurasia meets the strategic interest of China in diversification of routes for energy carrier supply. Therefore, the creation of the high-speed transport and energy corridor will enable China to reduce its dependence on oil supplies by sea through the Strait of Malacca. Currently, about 80% of oil is imported to China through the Strait of Malacca from the Middle East and Africa.

In general, the club members agreed that the creation of the New silk road reflects the changes in the global energy market: the Asian developing countries are becoming the major centers of the world economic growth, and, accordingly, they are going to cover the lion's share in the world consumption and import of traditional energy sources.

For the next 10 years, as the Executive Director of KAZENERGY, Rustem Kabzhanov, noted, the new environment makes ASEAN, Africa and Russia the most attractive countries and regions for the Chinese investments.

According to most of the meeting participants, in 10 years' time, the oil export from Kazakhstan to China will be 10-20 million tons per year, and by 2020, Kazakhstan will export its gas to China (without taking into account the current small export from the East Kazakhstan region). The creation of the New Silk Road also highlights the transit potential for a significant variety of products via the territory of the Republic of Kazakhstan. Thus, according to the meeting participants, the New Silk Road initiative will have the greatest impact on the rail infrastructure. In particular, the Director of the Center for Macroeconomic Research, Olzhas Khudaibergenov, believes that the intended construction of new railways will provide an additional impetus to the development of Kazakhstan's economy.

However, the opinions of the meeting participants were divided in the assessment of the development prospects of the Chinese economy itself and the possible negative implications for the economy of Kazakhstan.

In fact, some experts expressed concerns about the slow pace of China's economic growth in the medium term, changes in the structure of the Chinese economy bringing forward the domestic consumption, and the tight budget planning policy of the Chinese national companies, including those operating on the Kazakhstani market.

Other participants, in turn, noted that the slowdown in the Chinese economy is a natural process linked to the emergence of China at the level of the world's developed countries. According to the reported projections, the fall in the GDP growth in China's GDP will be as much as 2% by 2030-40, which is similar to the U.S., resulting in the restructuration of the entire global economy.

VIOLATED RULE

At parliamentary hearings "Issues and prospects of development of oil and gas sector of Kazakhstan" KAZENERGY General Director Asset Magauov declared that in the current situation there is a need for solution of two tasks for providing further sustainable development of oil and gas sector: development of geological exploration and further simplification and reduction of administrative procedures.

- Regarding geological exploration there is a tendency to reduction of stocks, i.e. we can't yet provide implementation of the rule about advanced growth of stocks over production volumes. Growth of production volumes that stopped since 2011 was, in many respects, provided at the expense of a few major oil fields. If we keep the current system of regulation, then the country will be dependent on "big three" (Kashagan, Tengiz, Karachaganak) and further stagnation of other companies in this industry should be expected. Thus, by 2029 the stocks can be reduced three times from the proved ones, - said Magauov.

The RoK Ministry of Energy conducted the working meeting under the chairmanship of the first vice-minister Uzakbai Karabalin. The topics of discussion were the issues of production environmental monitoring and background ecological researches in the Kazakhstan sector of the Caspian Sea. The working group for development of recommendations about modification of the current legislation has been created.

KazRosGaz LLP and "Karachaganak Petroleum Operating B.V." signed the long-term contract for purchase and sale of crude Karachaganak gas. The new deal provides for the delivery during 2022-2038 (15 years) of up to 9 billion cubic meters of sour gas per year extracted at Karachaganak oil and condensate field in West Kazakhstan region. Extension of the contract will allow to lift production limits on the Karachaganak processing complex and to carry out the future expansion project ained at increase of gas production. But, as it was noted, the most important thing is to create the possibility of ensuring supply of Karachaganak gas, including by exchange of operations, to domestic market of Kazakhstan on a long-term basis.

(to be continued)

On photo: Timur Kulibayev and PM Karim Massimov

Нашли ошибку? Выделите её мышью и нажмите Ctrl + Enter.
 

2355 viewsMain page Поделиться:

Подпишитесь и узнавайте о новостях первыми


Main page