Kazakhstan to produce Euro-5 gasoline at own plant
By Aynur Karimova
Kazakhstan plans to produce AI-92 and AI-95 gasoline brands of K5 environmental class corresponding to Euro-5 standard by late 2015, the country's Development Bank has said.
The gasoline production will be carried out in the West Kazakhstan region on the basis of the existing refinery complex -- Condensate JSC -- in Aksai.
Condensate JSC will be modernized, and after this the design capacity of the fuel production will be as following: AI-92 gasoline – 114,000 metric tons, AI-95 gasoline – 86,000 metric tons per year.
The enterprise also plans to establish production of virgin gas oil fractions in the amount of up to 198,000 metric tons per year, vacuum gas oil - 104 metric tons, and tar – 75,000 metric tons per year.
Currently, the enterprise is assembling the main process rigs for the production of gasoline.
The total project cost is approximately $200 million, and 60 percent of the required funding is provided by Kazakhstan's Development Bank for a period of up to six years.
The corresponding loan agreement was signed between the bank and Condensate JSC on June 2. The funds will be used to purchase equipment, construction, installation and commissioning.
"Modernization of the plant will reduce the shortage of motor fuel on the domestic market as well as eliminate the dependence of the western region of the republic on import of motor fuel from neighboring countries, and increase the range of finished oil products,” General Director of Condensate JSC, Farid Bakhtiozin said.
Kazakhstan has oil refineries located in Shymkent (country's southern part), Atyrau (western part) and Pavlodar (northern part). Their total processing capacity is 13 million tons per year.
Oil products produced in the country cannot meet demands from
the domestic market.
In order to normalize the situation with the shortage of fuel and
lubricants, as well as gasoline products in the domestic market,
the Kazakh government signed some contracts for AI-92 gasoline
supply in the amount of 106,700 metric tons in October 2014.
However, experts believe Kazakhstan may resolve its problems of periodic shortage of fuels and lubricants by attracting investments in the modernization of the country's refining sector, and reconstruction of existing oil refineries or constructing new ones.
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Aynur Karimova is AzerNews’ staff journalist, follow her on
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