Over the years of independence, about $200 billion of direct foreign investments have been attracted to the oil and gas industry of the country, including more than $120 billion to develop the three largest projects — Tengiz, Kashagan and Karachaganak. The Minister of Energy Kanat Bozumbayev reported this today at the Government meeting chaired by the Prime Minister Bakytzhan Sagintayev.

Reporting on the issue of attracting investments, Minister of Energy Kanat Bozumbayev noted that at the present moment, these three large fields are implementing expansion and prolongation projects for the plateau, with a total investment of $42.3 billion.

In 2017, amendments were made to the Subsoil and Subsoil Use Code, which provides for measures to stimulate investments in geological exploration and reduce investment risks of subsoil users. The Code comes into force in July 2018, at the moment the Ministry of Energy has developed 52 subordinate regulatory acts that are in agreement.

In the gas sector, the issue of raising borrowed funds from the EBRD for the construction of the Saryarka gas trunkline of KazTransGas JSC is currently under consideration for gasification of the city of Astana, the central and northern regions of the country. According to the feasibility study, the total cost of all four stages of the project is 370 billion tenge including VAT, with the first stage to the city of Astana — 267.3 billion tenge including VAT.

In the oil and gas industry, the project for the production of polypropylene with a capacity of 500 thousand tons per year is in active phase, an EPC contractor (Chinese company – China National Chemical Engineering Company), borrowed financing for $2 billion, and the issue of providing raw materials. The construction completion date is 2021.

According to the project of polyethylene production capacity of 1.2 million tons per year, interest in joint implementation was shown by the Austrian company Borealis. In 2018, it is planned to create a joint project company with Borealis and finalize the feasibility study.

According to the Minister Kanat Bozumbayev, the implementation of the above projects will attract $9 billion of investments, of which $8 billion of private investments, create up to 10 000 jobs during the construction phase and 1 200 at the operational stage, the contribution to GDP after commissioning will be 1.5%.

In the field of renewable energy sources, there are 55 operating renewable energy sources with a total capacity of 335.7 MW. By the end of 2020, it is planned to put into operation about 52 renewable energy objects with a total capacity of 2 GW with a total investment of almost 1 trillion tenge. The EBRD plans to invest up to €200 million in RES projects, with the possibility of attracting a total amount of up to € 480 million of private investments and investments of other international financial institutions to RES of Kazakhstan.

"The options for implementing renewable energy projects under the agreements with such companies as ANI International BV, General Electric International Inc., EBRD, Samruk Kazyna-United Green, Development Bank of Kazakhstan, CAPEC Green Energy, A subsidiary of DBK — DBK-Leasing, KAZ GREEN TEK SOLAR, are being considered" Kanat Bozumbayev summed up.

 

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