Oil Refining And Petrochemistry
This year, Kazakhstan may increase its railway exports of fuel oil. As in previous years, exporters will focus on shipments of dark oil products, as motor fuel is planned to be supplied only to the domestic market. This will lead to sustained demand for railway tank cars for export transportation of fuel oil and vacuum gas oil (VGO), while the fleet for transporting light oil products will mainly be used within the country, according to market participants.
Handling aggressive fluids in petrochemical industry. How to select the right pump and prolong the service life of the system?#3 (141), June 2023
The development of petrochemical industry set higher standards for final product quality. As the refining depth and purity of the final product increase, the environmental and safety requirements are consequently tightened. All these factors impose changes on duty conditions for the equipment, alongside with a need to introduce new fluids into the technological processes – and these fluids are getting even more aggressive towards the equipment.
A new Telegram channel, NefteGaz Talks, founded by Askar Ismailov, a seasoned oil industry professional who has worked on projects such as Tengiz SGP/SGI, Kashagan, Shah Deniz Stage 2, and the Southern Gas Corridor, has been conceived as a platform for discussions on current issues in the country's oil and gas industry.
Negotiations between KazMunayGas and the Polish state-owned energy conglomerate PKN Orlen regarding joint investment in the Romanian assets of the Kazakhstani national company have come to an unsuccessful end.
Reflections following a work trip to Russia's petrochemical plants
The Current Situation in the Industry
Petrochemical and oil refining activities play a crucial role in Russia's economy. The imposition of sanctions by the US and EU has had a certain impact on the industry's development. One of the challenges associated with sanctions is the restricted access to Western technologies and equipment essential for producing high-quality petrochemical products.
On the first day of the new year 2023, a Brussels Airlines plane, fully fueled with bio-kerosene at Brussels Airport, took off for Malaga, Spain. The year prior, the airport launched the Stargate program, which includes the construction of a facility for producing environmentally friendly aviation fuel.
For the petrochemical industry and oil refining, New Kazakhstan presented "justice" in the form of inspections of KazMunayGas and its subsidiaries by regional departments of economic investigations, the prosecutor's office, and tax authorities. Contractor companies that provided maintenance services for Kazakhstan refineries did not bypass the inspections either. The first heads of two Kazakhstani refineries, and several heads of structural divisions of these enterprises, were taken into custody.
This year, China National Petroleum Corporation (CNPC) is celebrating the 25th anniversary of its activities in Kazakhstan. It was with the arrival of CNPC in 1997 that large-scale and strategic cooperation between Kazakhstan and China in the oil and gas sector began. For a quarter of a century, the partnership has reached unprecedented proportions. The largest Chinese investor has invested about $50 billion in the development of Kazakhstan's oil and gas complex and paid taxes to budgets of various levels for about the same amount.
On April 20, the new Chairman of the Board of the National Company KazMunayGas Magzum Mirzagaliyev met with the General Director of Tatneft PJSC, Nail Maganov. It is Mirzagaliyev who will now have to develop joint petrochemical projects with a Russian company on the territory of Kazakhstan, the foundation of which was laid by his predecessor Alik Aidarbayev.
– Mr. Kozhanov, what is the current situation in the foreign direct investment market?
– This is probably one of the most frequently asked questions today, considering the socio-political events in January this year in Kazakhstan and the current geopolitical situation in the region.
"The fact that we still do not have petrochemicals and high–grade gas processing, as they say, is nonsense," said President of Kazakhstan Kassym-Jomart Tokayev, speaking on September 1, 2020, with a Message to the people of Kazakhstan. Words that accurately describe the current situation with high conversion rates in the oil and gas industry.
The details of the deal are disclosed in the publication of Gazeta.uz. The largest private oil and gas company Sanoat Energetika Guruhi (ex. Jizzakh Petroleum), became the buyer of the FOR. Jizzakh Petroleum). The transaction cost is $100 million. KPMG Valuation and Consulting acted as a consultant on privatization. The assessment was carried out by a company from Big4. Dentons provided additional legal support.