Petrochemistry and oil refining
Market of Bitumen Materials in Central Asia: Last Year❜s Results and Current Development Trends
Radik Saitov, Commercial Director of OMT-Consulting LLC, RussiaIn recent years, changes in the global geopolitical landscape have expanded opportunities for Central Asian countries to attract investment sources and develop trade relations. Investments in infrastructure, such as the construction and modernization of highways, railways, ports, and terminals, stimulate economic ties between Asian countries and their neighbors. Central Asian countries are ready for significant transformations in their logistics, with plans for developing transport corridors gaining momentum. The development of transport corridors in the southern direction opens enormous prospects for strengthening regional ties and unlocking economic potential.
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Major international highway corridors pass through Central Asian countries, developing as part of transport strategies and program documents. Transport infrastructure development is carried out in the "East-West" and "North-South" directions, including within the framework of the "One Belt, One Road" initiative and the development of the "Europe-Western China" corridor.
The road network's active development leads to increased bitumen material consumption. Kazakhstan and Uzbekistan produce their bitumen. However, most bitumen consumed is imported into Central Asian countries, mainly from Russia.
In 2023, bitumen consumption in Kazakhstan increased by 12% compared to the previous year, with a total consumption volume of 975 thous. tons. Despite an 8% decrease in production volumes, the increase in consumption volumes was due to a ninefold increase in bitumen imports compared to the previous year and a 52% decrease in export volumes due to a ban on exporting certain petroleum products starting from April 2023.
In 2023, bitumen imports in Uzbekistan grew by 58% compared to last year, reaching 396 thous. tons. By the end of 2023, the total consumption of bitumen in Uzbekistan (imported volumes and domestic production) amounted to 482 thous. tons, with imported bitumen accounting for 82% of the total volume.
By the end of 2023, bitumen imports in Kyrgyzstan amounted to 88.4 thous. tons, a 37% increase compared to the previous year. In 2023, supplies from Russian refineries increased by 28.9 thous. tons (+65%) compared to 2022.
In 2023, bitumen imports from Russia to Tajikistan amounted to 46.8 thous. tons, a 71% increase compared to the previous year.
For Kazakhstan, developing transport corridors in the southern direction is a strategic imperative. As Kazakhstan becomes the largest economy in the region, optimizing transport corridors is intended to strengthen regional trade and economic integration. Kazakhstan plans to implement several transformative transport projects to achieve this goal, enhancing connectivity and facilitating the seamless movement of goods across the region.
Kazakhstan is preparing to undertake comprehensive reconstruction efforts, with plans to rebuild over 4,000 kilometers of highways by 2029. Measures are being taken to address deficiencies in the road sector, including strict regulations and enhanced oversight to ensure timely and high-quality road construction.
According to the Ministry of Energy's plan, the authorized body in the field of petroleum product production, bitumen production was projected to reach 1.2 mln tons in 2023. Caspi Bitum planned to produce 500 tons, Pavlodar Petrochemical Plant – 280 tons, Qazaq Bitum – 360 thous. tons, and Asfaltobeton 1 – 72 thous. tons. On average, Kazakhstani plants planned to produce 100 tons of bitumen monthly from January to December.
However, by the end of 2023, 839.7 thous. tons of bitumen had been produced, which was 8% less than the previous year's production level.
In 2023, production volumes decreased at Caspi Bitum by 20% (-87.1 thous. tons) and at the Pavlodar Petrochemical Plant by 18% (-41.1 thous. tons) compared to 2022 production levels. Qazaq Bitum increased its production by 51% (+40.6 thous. tons), and Asfaltobeton 1 by 25% (+14.3 thous. tons). By the end of 2023, the planned production volumes were achieved at the Pavlodar Petrochemical Plant and Asfaltobeton 1. Caspi Bitum produced 72% of the planned volume, and Qazaq Bitum 34%.