Page 13 - FSUOGM Week 45 2022

FSUOGM NEWS IN BRIEF FSUOGM

KazMunayGas confirms launch Turkey has started paying for points at the Caspian Pipeline Consortium
(CPC) terminal off the Russian Black Sea
of new $2.6bn polypropylene some Russian gas in rubles coast, which Kazakhstan relies on for
transhipments of most of its oil. The CPC
plant in Atyrau Region says energy minister recently announced repairs were under way.
"The one working mooring point is
Kazakhstan's authorities and energy giant Turkey has commenced paying for some handling all volumes," a Kazakh energy
KazMunayGas have launched a $2.6bn its natural gas from Russia in rubles, ministry spokeswoman said. "As for repairs
polypropylene (PP) plant in Atyrau Region, Turkish Energy Minister Fatih Donmez told on the others, there have been no updates,
KazMunayGas and Kazakh presidential broadcaster TRT Haber on November 8. we are still waiting."
website said in simultaneous statements, The share of local currency payments in
adding to previous reports that the energy trade with Russia would increase
installation had been inaugurated. in coming months, he added. Most Kazakhstan's sovereign wealth
The KazMunayGas-operated facility international energy deals are settled in
is expected to produce 500,000 tonnes of dollars or euros. fund to sell 5% stake in national
polypropylene a year from gas feedstock Turkish President Recep Tayyip Erdogan
sourced from Tengiz oil field - the amount is seen as already campaigning for a re- oil company KazMunayGaz
would make up 1% of global output. It is election bid, with national polls due next
also expected to produce up to 65 types of June. But his efforts are hampered by a Kazakhstan's sovereign wealth fund is to
polypropylene. crisis-ridden, fragile economy short on FX sell a stake of up 5% in state oil company
The plant, which was originally set to reserves. Russian counterpart Vladimir KazMunayGaz on two domestic stock
launch in 2021, was built by China National Putin is regarded as keen on seeing fellow exchanges in an offering that values the
Chemical Engineering Group. strongman Erdogan re-elected. As well as company at Kazakhstani tenge (KZT) 5.1tn
Such facilities currently operate in only accepting gas bill payments in rubles, Putin ($11.1bn), the company announced on
five countries, namely Saudi Arabia, the US, could meet Turkey’s request for a discount November 7.
Belgium, South Korea and China. The plants on delivered gas and delays on gas debt The sale plan is one of a series of several
rely on Catofin and Novolen technologies payments. times delayed initial public offerings (IPOs)
provided by Lummus Technology. Putin, meanwhile, has proposed forming aimed at privatising some of Kazakhstan’s
By shifting further into gas-based a Russian natural gas hub in Turkey. largest firms. Kazakh President Kassym-
petrochemicals, Kazakhstan will look to Donmez told TRT Haber that Ankara would Jomart Tokayev is attempting to rebrand the
obtain more added value from its plentiful put forward a roadmap towards achieving IPO plans as part of political and economic
gas reserves. the hub by the end of this year and might reforms necessitated by the response to the
hold a conference for suppliers and buyers. deadly political unrest that hit the country
The Russian leader has said gas prices in January. In August, Bloomberg reported
Kazakh president oversees could be set at the hub rather than in that Kazakhstan’s sovereign wealth fund,
Samruk-Kazyna (SK), was planning to sell
Russia. However, to make the hub work,
launch of integrated gas- it would be necessary to persuade some shares in oil producer KazMunayGas at a
European countries to take deliveries of
discount in order to boost interest from
petrochemical facility in Atyrau Russian gas via the Turkish facility—and local investors in the midst of international
the European Union, previously reliant on
uncertainty driven by Russia’s invasion of
Region Russia for around 40% of its gas needs, is Ukraine.
Oil stands as the Central Asian nation's
attempting to wean itself off Russian energy
Kazakh President Kassym-Jomart Tokayev entirely following Moscow’s invasion of biggest export and KazMunayGaz holds
has taken part in the launch ceremony Ukraine in February. stakes in multiple projects including
for Kazakhstan Petrochemical Industries' Putin has said he believes some consortiums developing Kazakhstan's
integrated gas-petrochemical facility in European countries could be convinced to three largest oil fields, namely Tengiz,
Atyrau Region, Kazinform reported, citing sign contracts. Karachaganak and Kashagan.
the presidential press service. Priority in the placement will be given
Although the facility has “launched” the to bids from domestic retail investors,
report appears to indicate that it has not Kazakh daily oil and gas the fund's chief executive, Almasadam
yet been “commissioned”, meaning it may Satkaliyev, told a briefing. Bids will
not have started operating yet. The facility condesate output jumps be accepted between November 9 and
is expected to produce 500,000 tonnes of December 2.
polypropylene a year from gas feedstock to 258,900 tonnes due to The IPO looks much humbler than
produced at Tengiz oil field - the amount Kazakhstan’s previous grand plans
would make up 1% of global output. Kashagan restoration announced several years ago to float 25%
Such facilities currently operate in only stakes in large state-run firms. Plans to sell
five countries, namely Saudi Arabia, the US, Kazakhstan's daily oil and gas condensate shares in such companies never properly
Belgium, South Korea and China. The plants production jumped to 258,900 tonnes on came to fruition beyond the sale of a
rely on Catofin and Novolen technologies November 6 as the giant Kashagan oil field 25% stake in the world’s largest uranium
provided by Lummus Technology. restored output, Reuters reported. producer Kazatomprom in June 2020. The
By shifting further into gas-based Kashagan’s output was hit by a gas leak in listing of Kazatomprom took place on
petrochemicals, Kazakhstan will look to August and subsequent maintenance works. both the London Stock Exchange and the
obtain more added value from its plentiful In late October, Kashagan output domestic Astana International Exchange
gas reserves. doubled but remained well below capacity. (AIX).
Kazakhstan's output has also been
restricted by outages that hit two mooring

Week 45 14•November•2022 www. NEWSBASE .com P13