Energy Minister Bozumbayev Lays Out Ministry’s 2018 Plans

Minister of Energy Kanat Bozumbayev recently announced the performance results of the country’s energy sector for 2017 and described plans for 2018 in line with the tasks directed by President Nursultan Nazarbayev during his recent State-of-the-Nation address.

Concerning the presidential address “New Development Opportunities in the Conditions of the Fourth Industrial Revolution,” Bozumbayev said one of the ministry’s primary tasks is to further develop the resource potential. The main instrument for this is the Subsoil and Subsoil Use Code, the norms of which will come into force in July 2018. The subordinate legal and regulatory framework is being worked out.

“The subsoil use tax policy has been improved. The tax code has come into force on January 1 this year. The adoption of codes and the implementation of all stipulated norms will allow preserving the strategic importance of the oil and gas complex,” said Bozumbayev.

Speaking about the plans for the current year, the minister said an electronic trading platform for the sale of liquefied petroleum gas with the gradual elimination of state regulation of the marginal price will be introduced. This will improve the mechanism of pricing and distribution of liquefied petroleum gas. The legal framework will be finalised before December 2018.

The issue of gas infrastructure development in Astana is important and work will continue to finance that infrastructure.

In the petrochemical industry, construction will begin on the $2.6 billion Polypropylene Production Project with a capacity of 500,000 tonnes per year after a study is conducted to assess the feasibility of attracting loan-based funding and support measures for investors are developed.

In the electricity sector, the 51st step of the 100 Concrete Steps of the Plan of the Nation envisages the consolidation of energy transmission organisations to improve reliability and simplify energy supply in the regions.

“In 2018, 15 energy transmission organisations should cease their activities. In general, it is expected that the number of energy transmission organizations will be reduced 30 percent by 2022, in other words – from 160 to 110,” Bozumbayev said.

Phase II of the 500 kV Shulbinskaya hydro-electric power station’s Semey-Aktogay-Taldykorgan-Almaty line will be completed within the framework of the Nurly Zhol Programme. Thus, the interregional project North – East – South will be fully completed by the end of 2018. The project seeks to eliminate the electricity deficit in East Kazakhstan and Almaty regions and strengthen energy independence.

Changes are also planned for the green energy market. The renewable energy market is growing every year; 1.1 billion kWh was generated in 2017, which is 22 percent more than in 2016. The plan for 2018 is 1.7 billion kWh (155 percent of 2017). In addition, this year it is planned to introduce 10 renewable energy sources with a total capacity of 123 MW (5 facilities in 2017).

“In general, the development of renewable energy and environmental protection have been given a lot of attention in the address of the head of state. The main tasks and plans for 2018 are set, the workflow is established, the ministry will use all resources to achieve them,” Bozumbayev concluded.