Sajlaubekov N.T., the senior-lecturer of faculty Economy and management KBTU

The Current condition of petrochemical branch of Republic Kazakhstan.

As is known, for last 15 years Kazakhstan has reached considerable achievements and today puts before itself the purpose to enter into 50 competitive countries of the world. But to reach the given purpose to us it will be possible, if rise of economy of our republic will be made not only due to export of natural resources, but also due to development of processing branches. Here again a huge role the petrochemical branch will play.

Now Kazakhstan on stocks of hydrocarbon raw material takes the second place after Russia among the CIS countries. The approved taken stocks of hydrocarbon raw material on Kazakhstan make on oil - 4,8 billion tons, and on gas - 3,4 bln. m³. In forthcoming years is expected increase in volume of the proved taken stocks of hydrocarbon raw material in connection with realization of the Program of development of the Kazakhstan sector of Caspian sea.

In 2006 in Kazakhstan it is extracted 64,8 million tons of oil and a gas condensate that exceeds a level of extraction of 2005 on 5,5%. On the diagram 1 predicted dynamics of growth of an oil recovery in Republic Kazakhstan is resulted.

The diagram 1. Predicted dynamics of growth of an oil recovery in Kazakhstan up to 2015

Extraction of gas in 2006 has made 27 billion in m, including natural gas 14,4 billion in m, that above parameters of 2005, accordingly, on 2,9% and 2,6% (see the diagram 2). As the reason of significant successes in economic development of Kazakhstan the existing investment policy in raw sector and, in particular, in oil-and-gas sphere serves basically. Among the CIS countries it is the leader on a level foreign investment per capita. With 1991 for 2004 in domestic economy it has been involved more than 30 billion US dollars of direct investments.

Thus only in 2004 on fuel and energy complex the lion's share of total inflow of foreign investments has had nearby 2,6 billion dollars (59,1% from total inflow). Growth of investment investments in fuel and energy complex is caused by the current developed tendency of a rise in prices on energy carriers. So in 2004 the level of the world prices for crude oil has grown on 25% in comparison with 2003. Therefore about 80% all investments directed to a raw complex, goes on investigation and extraction of hydrocarbon raw material.

The diagram 2. Extraction of gas (bln.m³)

Until recently investments into development of oil refining, let alone petrochemical branch, were on a low level. The large oil companies, both foreign, and domestic, did not show interest to development of petrochemical manufacture in Kazakhstan. The taken hydrocarbon raw material in a significant amount without processing goes on export, and natural and passing gases are poorly used in branches of economy of Kazakhstan. At such scheme of manufacture to speak about complex processing it is not necessary, passing gases are burnt in torches or at the best move in boiler-houses. Besides the domestic industry continues to use on thermal power station black oil as fuel though from it take the most expensive mineral oil, for example, lubricant oils which manufacture in Kazakhstan is absent.

The basic production assets of the petrochemical enterprises existing in the country have been created in 80th years. They are focused on use of import raw material. Therefore they let out petrochemical production close to foreign analogues in the limited volumes: polystyrene, polypropylene and trunks. After finding of independence by Kazakhstan activity of the national petrochemical industry practically has been completely stopped. Basically it has been connected by that it was created as an intermediate link of a uniform industrial-technological petrochemical complex of the former USSR. The Kazakhstan enterprises received as raw material styrene, propylene, synthetic rubber from union republics, basically from Russia, carried out their processing, let out production, such as automobile tires.

Break industrial and economic relations between republics has led to that from two tens enterprises of chemical and petrochemical branch operated in Kazakhstan till 1991, now work some. At the same time the significant part of needs of republic in chemical production, plastic and rubber is satisfied due to import which by expert estimations, makes more than 2 billion US dollars in year.

And only in 2002-2003 some tendency to improvement of a situation was outlined in the given branch. Work of some petrochemical enterprises has been restored. Thus enterprise KazChemFibre is equipped by the modern highly technological equipment and will begin release competitive production which answers the international quality standards.

The principal causes constraining at us development of petrochemical manufactures, experts consider deterioration of the equipment and the out-of-date technologies on existing the petrochemical enterprises, problems with transportation of extracted raw material and finished goods, a high capital intensity of projects and long times of recovery of outlay.

Let's note also, that at existing capacity of oil refining factories of Kazakhstan in 18,5 million tons a year their average loading makes nearby 40%, that negatively affects work of the equipment and depth of processing of raw material (on the average 60%). Now in republic three oil refining factories operate in Atyrau, Pavlodar and Shymkent. As much factories on processing gas, namely Tengiz, Kazakh and Janajol.

The general designed capacity of processing of gas makes 6,25 billion m³ in year, and a level of recycling of passing gas up to 60%. All these enterprises are operating, but work by a fuel variant. Processing of hydrocarbon raw material is limited to separation of oil and gas without the further effective utilization of petrochemical raw material.

It is necessary to consider, that the enterprises concern to the petrochemical industry on output on the basis of hydrocarbon raw material (polystyrene, polypropylene, rubber products, trunks, reagents for a petroleum industry and so on. Actually from all volume of advanced production oil refining factories of any ton it is not made for the enterprises of petrochemical branch. Because of absence of own resources all the petrochemical enterprises work on raw material, basically, imported of Russia. Kazakhstan possesses large stocks of hydrocarbon raw material which are necessary for development of petrochemical branch. But in republic there are no capacities on their complex processing, therefore we cannot in sufficient volume provide own source of raw materials for petrochemical branch.

And still in Kazakhstan first steps on creation of a uniform technological circuit on release of petrochemical production with the high added cost are made. On the basis of a factory on manufacture of polypropylene in Atyrau it decided to create the integrated petrochemical complex with annual capacity in 800 thousand tons of polythene and 400 thousand tons of polypropylene. This project has been presented at III Kazakhstan petrochemical conference which has been last in Almaty in April, 2005. The total cost of construction of a complex is estimated in $3,5 billion. It is known, that 70 percent from this sum will be involved from syndicate of the international banks, and 30 percent will make own means SATCo, companies Basell and KMG according to their individual share in the given project. The integrated petrochemical complex is calculated on deep processing of hydrocarbon gas Tengiz and Kashagan. From commodity gas from these deposits it will be separated etan which then on specially constructed gas mains will go on the integrated petrochemical complex. On the basis of this raw material the whole scale polyethylene production will be made. Designing of a complex should begin in 2006. Construction in the third quarter of this year.

In the conclusion it would be desirable to note, that the petrochemical branch possesses a more potential, and its development can promote disposal of a monoraw orientation of economy of our republic and to bring the huge contribution to its further development. Rapid development of petrochemistry in other countries is not an obstacle for creation of similar manufactures in Kazakhstan as world demand for petrochemical production constantly grows. Here again Kazakhstan can use the favorable geographical position for an output on the European and Asian markets. It is necessary to consider also, that our republic borders on China which is one of the largest world consumers of petrochemical production. But, unfortunately, now our country has no enough the developed petrochemical industry, why annually the economy loses potential profit.

The literature.

1. B.Izmukhambetov. МЭМР РК: News agency “The Interfax-Kazakhstan”, March, 2006

2. Bakisheva S. Current conditions and perspectives of oil-chemical processing in Kazakhstan. // Theses of reports of scientifically-practical conference “Problems of innovative development of the oil-and-gas industry”, КBТU, Almaty, 2007.