Domestic Policy | Priority Sectors

Energy

Topics in this Section
  • Kazakhstan ranks among the world’s top 20 oil producers, with the ninth-most proven reserves in the world and about a 2% share in global production. 
  • Kazakhstan holds 30 billion barrels (four billion tons) of proven recoverable oil reserves and potential reserves of 100-110 billion barrels.
  • New projects being developed have led industry experts to estimate that by 2015, Kazakhstan will be one of the top five oil exporters in the world, with three million barrels per day.
  • Major oil and gas fields and their recoverable oil reserves are Tengiz with 7 billion barrels (1.1 bln. tons); Karachaganak with 8 billion barrels and 1.35 trillion m³ of natural gas; and Kashagan with 7 to 9 billion barrels (936 mln. to 1.2 bln. tons).
  • By 2011, Kazakhstan’s extractive industry made up about a quarter of the country’s GDP, while crude oil alone accounted for 60% of all exports. The oil sector currently accounts for more than half of all tax revenues.
  • Kazakhstan has made major investments to develop a Green Energy sector. President Nazarbayev has pledged that 50 percent of Kazakhstan’s energy consumption come from green sources by the year 2050.
  • The country has 3% of the world’s raw materials and a natural resource base of over $300,000 per capita, which is among the highest in the world and is twice the level of Russia and higher than Australia.
  • It has 4% of the global iron reserves, 8% of the world’s zinc reserves and 4% of the world’s chrome reserves.

Today new large-scale projects in the sphere of high processing of our natural resources are taking place.

1) The Government has began the construction of the first module of the Balkhash Thermal Station with the power of 1320 MW and worth 2.3 billion USD, in order to solve the problem of energy shortages and energy dependency of the southern regions. 2) One of the largest energy project in Kazakhstan is also the construction of the Moinak hydro-electric power station. The capacity of Bestyubinsk water reservoir is enough to store up to 300 million cubic meters of water. Two powerful hydro-turbines produce 300 megawatt of electric power.

Oil & Gas

Kazakhstan’s oil and gas complex remains the powerhouse of our economy.

  • The share of the oil and gas sector within the country’s GDP has been growing at a steady rate, increasing from 3.7% in 1997 to 14.7% in 2006 and up to 25.8% in 2011.
  • Kazakhstan diversified its export markets and secured its position, thereby has reduced its dependence on any particular export direction.
  • In the early 1990s, President Nazarbayev had the foresight to create a fund, based on the Norwegian model, which preserved oil and gas revenues for our children and our grandchildren. This so-called “fund for future generations” has now accumulated over $47 billion and is the cornerstone to managing and preserving the country’s oil wealth.
  • Major oil and gas fields and their recoverable oil reserves are Tengiz with 7 billion barrels (1.1 bln. tons); Karachaganak with 8 billion barrels and 1.35 trillion m³ of natural gas; and Kashagan with 7 to 9 billion barrels (936 mln. to 1.2 bln. tons).

The oil and gas sector represents a major dimension of the U.S.-Kazakhstan bilateral partnership. After all, in 1993, Chevron became the first major Western oil company to invest in Kazakhstan with the creation of TengizChevroil. Over the past twenty two years, Western energy firms and their advanced technologies have been essential to fueling the growth of Kazakhstan’s oil industry and uncovering some of the most challenging offshore, deep-sea energy deposits in the world.

Renewables

  • Kazakhstan has significant potential in renewable energy sector with its low population density and access to renewable energy sources such as wind, sun, and water.
  • The UNDP estimates that the potential for wind energy alone exceeds Kazakhstan’s current energy consumption by ten-fold.
  • The government aims for the share of renewable energy in domestic electricity generation to rise to 30% by 2030 and 50% by 2050.
  • By 2020 the country should have 13 wind, 14 hydropower and four solar power plants, as well as a nuclear power plant.
  • In 2013 Kazakhstan adopted legislation establishing feed-in tariffs for renewables, which will be in place for 15 year, and provides capital subsidies.

Together with Islamic Development Bank, the country has established a renewable energy fund of $50 million that hopes to attract strategic investment flows and expertize into renewable energy sector, particularly wind, solar, biomass and small hydro.

In 2013 the government has launched a pilot version of the national carbon-trading scheme. In 2017, Kazakhstan will for the first time host the World Expo exhibition, dedicated to ‘Future Energy’. 

Green Bridge Kazakhstan’s Green Bridge Initiative was adopted by the United NationsConference on Sustainable Development and aims to strengthen national and international governance, develop informational infrastructure, boost outreach and education, encourage green business and related technologies, introduce effective financial and economic mechanisms, and the creation of unified standards for the green economy.

The Green Bridge targets conservation in five core sectors:

  • mountainous and wetland ecosystems,
  • sustainable energy (availability and efficiency),
  • food security,
  • urban infrastructure and transport,
  • adaptation to climate change and natural disasters.

Expo 2017

From June 10 to September 10, 2017 Kazakhstan’s Astana will be the first CIS city to host the World’s Fair exhibition. For the first time EXPO will be dedicated to ‘Future of Energy’, facilitating discussion of the international community on innovation in energy and presentation of best practices in energy applications by experts. EXPO will make a significant contribution to the development and use of alternative energy sources globally, creating more environmentally-friendly economies as well as provide an impetus for Kazakhstan’s own transition to a green economy.