KazEnergy Wants to Unite Potential of Government, Society, and Businesses

Feb 21. MFA

KazEnergy Wants to Unite Potential of Government, Society, and BusinessesAs Kazakhstan has begun a new stage of its development following the parliamentary election earlier this year and the presidential one in 2011, President Nursultan Nazarbayev has set new objectives and priorities for the upcoming decade in his state-of-the-nation address.

In the address, the President called for a comprehensive social and economic modernisation, diversification of the economic system, achieving a higher level of well-being for all citizens.

Calling the country’s oil and gas sector as one of the foundations of the national economy, the President said its sustainable growth determines the success of a long-term development of the country, strengthening the welfare of its people. Important results have already been achieved in this process through a coordinated work of the government, the “Samuryk-Kazyna” National Welfare Fund and other companies of the industry and industry associations.

“Today, the government and the business community focus on the implementation of projects which ensure sustainable growth of the industry,” Chairman of the KazEnergy Association Timur Kulibayev wrote in an article in The Central Asia Monitor weekly. “Those include the construction of the Karachaganak Gas Processing Plant, a gas and chemical complex in Atyrau, modern petroleum refining facilities, gasification of central regions of the country and the capital as well as other large-scale plans,” Kulibayev added.

“The modern history of the projects, namely Tengiz, Karachaganak, Kashagan, the development of the Kumkol basin in southern Kazakhstan, the revival of the Ozen field in Mangystau, the rise of production in the Atyrau and Aktobe, began when they opened Kazakhstan’s economic opportunities for international investors. They attracted billions of dollars in investments, creating tens of thousands of new jobs, and a huge increase in reserves and productivity of the industry,” he continued.

Since 2001, oil production in Kazakhstan doubled to reach 80 million of tonnes in 2011. During those years, the rise of natural gas production was even more impressive as it increased almost eight-fold, from 5.46 billion cubic metres to 39.5 billion a year.

Along with the production rates Kazakhstan’s international reputation as a guarantor of energy stability in Eurasia has grown, too.

At the same time, government expenditures for the growth of the nation’s social welfare as well as aimed at the industrial-innovative development of Kazakhstan’s economic system have steadily grown.

“Kazakhstan has already launched several major transport projects, the construction of roads and gas pipelines in the south, north and west of the country. They would become the arteries of the sources of energy, goods and services that enable the growth of established, figuratively speaking, new “muscles” of the national economy,” Kulibayev said.

“In particular, the expansion of the Caspian Pipeline Consortium (CPC), the largest oil export route in Kazakhstan, started in 2011. By 2015-2016, CPC’s throughput capacity will increase from 28 million of tonnes up to 67 million of tonnes per year, which will create a solid foundation for the export of oil from the largest oil fields Tengiz and Kashagan. In addition, the throughput capacity of the “Kazakhstan – China” oil pipeline is planned to expand to reach 20 million of tonnes in the foreseeable future,” Kulibayev added.

“At the same time accelerated gasification of all regions of the country and reducing of dependence on imported natural gas are among priority tasks,” Kulibayev wrote.

Pursuant to this goal, in 2011 Kazakhstan launched the construction of its largest gas pipeline “Beyneu – Bozoi – Shymkent” with a capacity of up to 15 billion cubic metres. By 2013-2015, the pipeline will connect the gas resources and transportation facilities of Western and Southern Kazakhstan.

The KazEnergy Association which Kulibayev chairs plays an active role in improving professionalism of the personnel and quality management considering it as one of the key areas of socio-economic modernisation. The Association cooperates with the Centre for International Programmes “Bolashak”. About 25 colleges and vocational schools as well as 20 high schools are among its partners. The Association provides grants to scientists and teachers, gives scholarships to several hundred students and pupils.

KAZENERGY Association was established on November 2, 2005 as an independent non-commercial union of legal entities with the aim to promote creation of favourable conditions for the dynamic and sustainable development of the fuel and energy sector of Kazakhstan. The Association unites more than 50 major players in the oil, gas and energy business – extracting, transporting, servicing, geophysical, uranium-producing and other transnational companies.