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Kazakhstan to import petroleum products from Azerbaijan, Russia

2 October 2014 11:50 (UTC+04:00)
Kazakhstan to import petroleum products from Azerbaijan, Russia

By Aynur Jafarova

Kazakhstan's KazMunaiGas National Oil and Gas Company agreed on importing petroleum products from Azerbaijan and Russia, local media reported on October 1.

"We are facing a shortage of petroleum products in the country," Deputy Energy Minister Magzum Mirzagaliyev said at Kioge conference in Almaty. "In order to resolve the problem, KazMunaiGas has signed some contracts with large petroleum suppliers from Russia and Azerbaijan."

He also added KazMunaiGas agreed on importing about 180,000 metric tons of petroleum products from Russia and 10,000 metric tons from Azerbaijan.

"The situation with petroleum oil and lubricants is improving," Mirzagaliyev noted.
"After the completion of modernization of oil refineries in 2016, they will completely meet the demand of the domestic market for fuel and lubricants and Kazakhstan will experience no shortage of petroleum oil and lubricants until 2022-2023."

Kazakhstan has some oil refineries, which are located in Shymkent (country's southern part), Atyrau (western part) and Pavlodar (northern part).

Earlier Russian Energy Minister Alexander Novak said Russian Bashneft and Lukoil companies will supply additional gasoline and diesel fuel to Kazakhstan.

"Bashneft will supply some additional 13,000 metric tons of gasoline and 5,000 metric tons of diesel fuel within the week," he noted. "Lukoil will supply additional 8,000 tons of gasoline and diesel fuel until the end of the month."

Experts believe Kazakhstan may resolve its problems of periodic shortage of fuels and lubricants only by increasing the prices of fuel and applying market laws.

Attracting investments in the modernization of the country's refining sector is another vital element for resolving this problem.

The reconstruction of Kazakhstan's oil refineries or construction of new ones is also believed to resolve the problem of fuels and lubricants shortage in the country.

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