Gas exports, Thermal Power Plants, Power Grids' Wear: Satkaliyev Visits Almaty

The Minister of Energy Almasadam Satkaliyev has visited Almaty. At a meeting with local residents, he spoke  about the physical deterioration of the city's power grids, gasification and modernization of equipment. Energy consumption in a megalopolis is almost twice as high as production. Orda attended the meeting.

He initially announced when Almaty CHPP-2 and CHPP-3 will complete their transition to gas. According to the minister, repairs at the CHP-2 are nearing completion, the deadline - the end of November. At the same time, combined-cycle gas plants with a capacity of up to 225 megawatts will be installed at CHP-1.

Modernization is continuing at CHP-2 to minimize environmental impacts. The construction of a new station based on a combined-cycle gas plant with a capacity of up to 557 megawatts is also ongoing. But the transition project of CHP-3 involves the expansion of the station with the installation of combined-cycle gas plants with a total capacity of 545 megawatts.

According to Satkaliyev, the phased full transfer of the Almaty CHP-2 to gas will begin in 2025 and will be completed in 2026, whereas the CHP-3 – after 2026.

Oil and Gas

The Minister also spoke about gas exports to China. According to him, this process is connected with the country's capabilities. This year the parties agreed to export 4.5-5 billion cubic meters. In subsequent years, the volumes will depend on the indicative balance. Supplies to the domestic market still remain the main priority.

We are talking about gas from fields in the west of Kazakhstan. The main source is Tengiz. We have an operating Kazakhstan–China export gas pipeline, and gas transit from Turkmenistan and Uzbekistan also passes through our country. In this regard, the routes will be worked out,
 Satkaliyev said.

Kazakhstan is also ready to supply up to 10 million tons of oil to China. This year, the volume of shipments will be slightly more than a million tons. Meanwhile, according to the Ministry of Energy's forecasts, oil production in 2024 will remain at the same level and will amount to more than 90 million tons.

Tariffs and Situation in Almaty

Answering the question about the Almaty thermal power plants' transition to gas, Satkaliyev explained that citizens should expect an increase in tariffs, but it will be gradual. 

The Minister added that this is a necessary measure, as the industry has a high level of equipment wear – 65% this year. Employees also have low salaries that need to be raised.

To solve the problem, it is necessary to make the electric power industry attractive for investment, as has been repeatedly stated. We are upgrading stations via capacity tariffs. When the station guarantees load carrying, we make payments from a single buyer. As a result, the costs are distributed to everyone in Kazakhstan. This is not only for Almaty, but also for other projects, including renewable energy. Light tariffs will also be put in order within three to five years. During the same time, we will bring gas prices in the domestic market to market prices,
 the speaker promised.

Almaty's domestic electricity consumption, according to the latest data, is 9.711 billion kWh, and production is 5.485 billion kWh. The price of electric energy of Almatyenergosbyt LLP is approved at the level of:

• 19.48 tenge/kWh – for the population
• 23.47 tenge/kWh – for legal entities
• 31.92 tenge/kWh – budget organizations

According to the Minister, the physical wear of the main equipment of Almaty stations is as follows: 

• CHP-1 – 73 %
• CHP-2 – 71.3 %
• CHP-3 – 76.2 %
• Kapshagayskaya HPP – 85.2 %
• Kaskad HPP – 82.5%

Satkaliyev, however, added that the gasification level of Almaty today is 99.2% or 2.1 million people. There are plans to build 113 km of gas pipeline and reconstruct 158 km. It is also planned to repair 111 electrochemical protection stations and 53 gas-distribution control points.

It is also planned to build a gas infrastructure for the CHP

Fuel and Lubricants Market

Satkaliyev also spoke about what measures are used in the Ministry of Energy for uninterrupted supply of the fuel and lubricants market. This concerns the ban on the export of petroleum products by road and rail, as well as the introduction of legislative norms obliging resource holders to sell fuel directly to refueling stations. 

At the same time, according to the Minister, unproductive intermediaries in the supply of oil and the sale of petroleum products have been eliminated. An order has also been adopted to reduce the price difference for fuel and lubricants between Kazakhstan and neighboring countries by increasing marginal retail prices:

• AI-92 and AI-93 gasoline: 182-187 tenge to 205 tenge per liter
• Diesel: 230-260 tenge to 295 tenge per liter (an average increase of 20%)

Summing up, Satkaliyev added that the adaptation of the preliminary feasibility study at the request of the Chinese National Oil and Gas Corporation to increase the capacity of the Shymkent refinery to 12 million tons will be completed in 2029.

Original Author: Alexander Smolin

DISCLAIMER: This is a translated piece. The text has been modified, the content is the same. Please refer to the original piece in Russian for accuracy.