Kazakhstan to produce nearly 80 billion cubic meters of gas by 2027

The Forum is expected to discuss the key issues in the energy sector, and its participants plan to come up with some decisions regarding this sector.

According to the Kazakh Prime Minister, the energy sector is undergoing a certain transformation in planning.

“The global consumption structure is changing requiring a shift in the industry. What is required of us is something new. This is an obvious message as part of what the world is developing to ensure sustainable development. The global economy pace is developing amid stiff competition. There are ongoing declines in both finance and industry. Regional instability is increasingly becoming frequent”, Askar Mamin said.

He has stressed that the big shocks to the financial and economic market make to turn to renewable energy sources and adjust the global infrastructure to new innovations.

“We need at the same time to maintain stability and predictability of energy market. In this context, Kazakhstan’s role on the backdrop of the changes is more acknowledgeable. We are a regional leader thanks to the stable energy supplies. Astana-Expo was an excellent platform and opportunity to discuss new energy sources. Since then, there have been some events in implementation of and preparations for a green economy”, the Head of the Government said.

Kazakhstan produces around 90 million tons of oil per year being among top 15 oil producers. Given the current paces the country intends to produce nearly 80 billion cubic meters of gas by 2027, according to the Kazakh PM.

He said that the country’s refineries’ capacities have increased considerably in recent years.

“Domestic energy production has turned into the main factor for further development in petrochemical, oil-refining industries. The country’s refineries’ capacities have gone up considerably. The range of products fully covers our domestic demands. In 2019, our country plans to refine 17.2 million tons of oil against 14.9 million in 2014, enabling to virtually fully meet our domestic demands for some oil products. It is expected that natural gas production is about to exceed 55 billion cubic meters this year. Given the current paces the country will produce over 80 billion cubic meters of gas by 2027”, Mamin said.

The Kazakh PM pointed out that the current profile of projects being implemented or developed focuses on turning Kazakhstan into the large global exporter of polyethylene and polypropylene.

According to him, petrochemical machinery has benefited from the raise in the demand for equipment to extract gas, with production growing by 40% (from 39.4 billion to 54.8 billion tenge) thus reflecting the growing potential for diversification of the entire economy.

“Our profile projects, including polyethylene and polypropylene production, save us leading performances. There are some breakthroughs in the petrochemical sector. In 2018, the domestic production increased considerably within the country. The consumption of traditional fossil fuels grows. And, there are sufficient amounts to meet the current needs. However, in order to ensure long run production we review and renew our policy on private investment attraction on a regular basis. There have been the amendments adopted to the legislations regarding the use of oil, RES and green energy. Our country looks forward to becoming a global leader in oil production”, the Kazakh PM said.

OPEC Secretary General Mohammed Barkindo said that OPEC (Organization of the Petroleum Exporting Countries) and Kazakhstan are committed to market stability.

“OPEC and Kazakhstan are committed to market stability. On 5 November the world review is about to come out that will cover an outlook for the oil and gas sector. Many publications of ours base on thorough analyses and research. Our surveys reveal what will prevail in the oil and gas industry. Oil and gas will take the largest share of energy up to 2040. We also expect great demand for oil and gas forecast to reach 112 million barrels per day by 2040. Most of which will be imported from developing countries with rapid population growth and strong economic growth”, Mohammed Barkindo said.

The 7th KAZENERGY Eurasian Forum is destined to offer effective dialogue among the participants of energy markets, to review the current trends and directions in the development of energy system. The perspective and strategic initiatives following this Forum create good preconditions for dynamic and sustainable development of the country’s oil and gas and energy complex. Each year the Forum brings together up to 2500 participants from over 50 countries, including more than 30 international organizations and around 300 large energy companies. It also attracts around 200 representatives of foreign and local media.