03 March 2025, 11:00
An extended meeting of the Board of the Ministry of Energy was held in Astana, where the results of the department's work for 2024 were summarised and key tasks for 2025 were defined.
Roman Sklyar, First Deputy Prime Minister of the Republic of Kazakhstan, representatives of state bodies, local executive bodies, public associations, associations and other interested enterprises attended the meeting.
Minister of Energy Almassadam Satkaliyev in his speech noted that despite the challenges, 2024 was a year of stability and progressive development for the fuel and energy complex of the country. In a number of areas it was possible to achieve and exceed the planned indicators.
"At the end of 2024, oil production amounted to 87.7 million tonnes or 97.1% of the 2024 plan, oil refining 17.9 million tonnes or 100%, production of oil products 14.5 million tonnes or 102.1%, gas production 59 billion m3 or 97.5%, LPG production 3 million tonnes or 101.4%, production of oil and gas chemical products 540 thousand tonnes or 102.9% electricity 117.9 billion kWh or 102.5%, RES 7.58 kWh or 112.3%," Almassadam Satkaliyev specified.
Subsoil use
According to the agency, in the field of subsoil use today there are 345 contracts for exploration and production of hydrocarbons (321) and uranium (24).
"Amendments to the Code “On Subsoil and Subsoil Use” have been adopted. In particular, the norms that stimulate the attraction of investment in exploration and further development of depleting fields, which will allow to attract up to an additional 200 billion tenge annually and increase oil production at brownfields to 60 million tonnes by 2045, as well as save jobs," Almassadam Satkaliyev explained.
It is noted that at the end of 2023 - 2024, 8 improved model contracts were concluded for an investment of about $9.2 billion.
In 2024, 30 fields with recoverable reserves of 115.6 million tonnes of oil and 25 billion m3 of gas were transferred from the exploration stage to production. These fields will be commercially developed within 3 years. Gas production has started at 3 fields (Rozhkovskoye, Yuzhny Aksai, Anabai) with recoverable gas reserves of more than 31 billion m3.
Based on the results of auctions held for granting subsoil use rights for hydrocarbons in 2024, 14 subsoil plots were sold with a signing bonus of 9.5 billion tenge and minimum investments in geological exploration of $72.5 million.
The share of Kazakhstani content in purchases by subsoil users was 61.9% or 3.8 trillion tenge. There is significant potential for localisation and development of Kazakh content in 16 product groups, which account for 60% of all purchases by major subsoil users.
"Increasing the share of domestic engineering is one of the important tasks. Today in Kazakhstan there are already a number of joint ventures with participation of Kazakhstani and world engineering companies carrying out design works," Almassadam Satkaliyev added.
During the meeting were announced plans for 2025, including:
Oil and gas industry
According to the Ministry of Energy, the plan for oil and gas condensate production for 2025 is 96.2 million tonnes.
"The main increase is planned due to the implementation of the project of future expansion of the Tengiz field, which is planned to be launched in the 2nd quarter of 2025. Investments in 2025 will amount to about $598 million," Almassadam Satkaliyev emphasised.
According to the Minister, work continues at Karachaganak on PKK-1B to commission the 6th crude gas re-injection compressor, which will ensure maintenance of the production shelf at the level of 11-12 million tonnes per year. Investments in 2025 will amount to about $140 million.
Work continues on the Kalamkas Sea and Khazar projects. In 2025, it is planned to complete FEED design, tender for EPC, and make a final investment decision (FID) on the project. Peak oil production will be up to 4 million tonnes. $6.6bn will be invested in the project.
At the end of 2024, the volume of oil exports was 68.6 million tonnes, including:
Kazakhstan oil export plan for 2025 is 70.5 million tonnes.
It was also reported that by the end of 2024, the volume of oil refining amounted to 17.9 million tonnes. In particular, the production of 5 separate types of petroleum products amounted to - 14.5 million tonnes, including motor gasoline - 5.46 million tonnes, diesel fuel - 5.38 million tonnes, fuel oil - 1.99 million tonnes, jet fuel - 0.75 million tonnes, bitumen - 0.92 million tonnes.
The oil refining plan for 2025 is 17.6 million tonnes, with petroleum product output of 14.6 million tonnes.
Gas industry
According to the Minister of Energy, at the end of 2024, the volume of gas production was 59 billion m3 with a plan of 60.5 million tonnes. There was a slight decrease in gas production in the country.
"In general, the gas produced in the country is associated gas. In this regard, the failure to fulfil the oil production plan affected the gas production indicators. In order to expand its own gas resource base, work is currently underway to build a gas processing plant," Almassadam Satkaliyev explained.
The gas production plan for 2025 is 62.8 billion m3. At the same time, the Energy Minister emphasised that the country's gas supply is one of the ministry's priority tasks. The department together with local executive bodies in 2024 implemented 200 projects of gas supply, financing of which amounted to 193.8 billion tenge from the republican budget and funds of Samruk-Kazyna.
By the end of 2024, more than 300 thousand people or 92 settlements received access to gas. More than 4 thousand kilometres of gas pipelines have been constructed and 93 gas supply projects have been completed.
In 2025, it is planned to increase the level of gasification of the population to 62%;
Oil and gas chemistry
At the end of 2024, the volume of oil and gas chemical production was 540 thousand tonnes. On 31 December 2024, the Government approved the conclusion of the Investment Agreement for the production of methanol with a capacity of 130 thousand tonnes with Zhaik Petroleum Ltd LLP. Thus, the first investment agreement was concluded in the oil and gas chemical industry.
Plans for 2025:
Electric power industry
By the end of 2024, the volume of electricity generation will amount to 117.9 billion kWh. RES generation totalled 7.58 billion kWh, with the share of RES accounting for 6.4% of total generation.
At year-end, conventional generation projects with a total capacity of 608 MW (Atyrau TPP, Zhezkazgan TPP, Ekibastuz GRES-1), as well as 8 RES projects with a capacity of 163 MW were commissioned.
In 2024, during the repair campaign, work was carried out on 10 power units, 55 boilers, 45 turbines. In the power grids, 20.8 kilometres of transmission lines and 422 substations were repaired.
Based on the results of repair works in 2024, a 18% reduction in technological failures at CHPPs was achieved and wear and tear was reduced from 66% to 64%.
Plans for 2025:
Heat networks
By the end of 2024, 285 kilometres of heating networks have been repaired. The average depreciation of heat supply networks in the country is 52 per cent.
The Ministry of Industry and Construction took over from the Ministry of Industry and Construction the functions of financing heat supply system development projects from the republican budget, and a new budget programme has been opened since this year.
Within the approved three-year budget, only 40.4 billion tenge is envisaged for the implementation of 27 projects of reconstruction and construction of heat supply networks for 2025.
"At the same time, I note that, in general, the need of the regions for targeted transfers from the republican budget is much higher than the approved amount and amounts to more than 168 billion tenge according to the budget requests for clarification. In this regard, in order to ensure uninterrupted heat supply to the population, as a possible operational solution, it is proposed to consider the allocation of funds within the framework of clarification of the republican budget and the reserve of the Government'," Almassadam Satkaliyev said.
The Minister added that given the limited funds of the republican budget, as well as the capital intensity of infrastructure projects, it is necessary to consider solidarity co-financing by regional akimats, and increase the share of local budget participation in heat network projects from 10% to 30%.
Nuclear power
According to the Ministry of Energy, by the end of 2024, the volume of uranium production is 23.27 thousand tonnes, sales of uranium products 308 tonnes, export of finished nuclear fuel 380 fuel assemblies.
Last year, negotiations were held with potential suppliers of nuclear technologies within the framework of an open competitive dialogue procedure to select a consortium for the construction of NPPs. In December 2024, the Government approved the area of NPP construction in Zhambyl region of Almaty region.
By 1 July 2025, it is planned to select a vendor or consortium. By November of this year it is planned to conclude an intergovernmental agreement and relevant contracts. Plans also include the development of the Nuclear Industry Development Strategy until 2050, which will cover both plans to build further nuclear power plants and the development of other areas of the nuclear industry necessary for the effective implementation of the nuclear energy programme and the development of the nuclear cluster.
#Energy #Heat supply #Nuclear power #Oil & Gas
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