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    Kazakhstan

    Kazakhstan's oil refineries resume production after overhaul, easing fuel shortages

    Kazakhstan's oil refineries resume production after overhaul, easing fuel shortages

    Kazakhstan's oil refineries have successfully completed planned repair works, leading to the resumption of production and the alleviation of recent fuel shortages. As per Deputy Chairman of KazMunayGas, Dmitry Makeyev, the Pavlodar and Shymkent oil refineries have restored their capacities and modernized their production facilities, resulting in improved environmental indicators and increased tax payments to the budget.

    Photo: Kazakhstan's oil refineries resume production after overhaul
    Source: Shutterstock

    The refineries are expected to return to full operational status within two weeks, ensuring a sufficient supply of all types of fuel to the domestic market. Deputy Chairman Makeyev acknowledged that while there were issues with transportation that caused a temporary shortage of 95 RON gasoline at petrol stations across the country, the situation is expected to stabilize with the refineries back in operation. Additionally, the necessary volumes of diesel fuel will be provided to support the upcoming harvesting campaign.

    One area of focus for future improvement is jet fuel production. Kazakhstan currently imports approximately a third of its required jet fuel, but plans are underway to address this issue by expanding the Shymkent oil refinery. The anticipated increase in jet fuel demand over the next 10-20 years has prompted the authorities to prioritize satisfying this demand through the refinery's expansion.

    On July 17, Kazakh refineries collectively processed 38,700 tons of oil, representing a 14.5% increase of 4,900 tons compared to the previous year. This recovery in production figures was achieved following the shutdown of the Atyrau oil refinery due to a power unit failure at the Mangystau Atomic Energy Complex on July 3. It is expected that the daily processing volume will reach 50,000 tons again once all three refineries are operating at their usual capacities.

    To ensure the reliability and smooth functioning of the Mangystau Atomic Energy Complex, the Kazakh government has allocated nearly $1mn. This decision comes after an investigation into the cause of the accident revealed systemic shortcomings in the complex's energy facilities. To prevent similar incidents in the future, the government is taking immediate and systemic measures. This includes modernizing and reconstructing the complex, strengthening the stable external power supply to the Atyrau refinery, and constructing a dedicated energy source for it.

    The completion of the overhaul at Kazakhstan's oil refineries and the subsequent resumption of production signifies a positive step towards meeting the country's domestic fuel demands and enhancing its energy infrastructure. 

     

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    20.07.2023, 14:29   Comments (0)   907
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