§ 6. Fuel industry

Petroleum industry. Oil - the major mineral without which the modern economy cannot exist. In a crude kind oil is not used. By distillation from it receive gasoline, diesel fuel, kerosene and new chemical ­ products. The oil refining rest - black oil - is used ­ as fuel for power stations and metallurgical ­ furnaces. The firm rest of oil - tar - is applied at a construction of roads. A gas waste of oil refining is raw materials for reception of a synthetic fibre, rubber, spirit, plastic, etc.

In Kazakhstan oil and gas manufacture is developed. In territory of the country about 14 perspective basins exist, among which ­ - Atyrau-Embi and Mangistau. Large supplies of oil are available on Turgai deflections and in the shelf of the Caspian Sea. On the general stocks of hydrocarbonic raw materials Kazakhstan is on the second place after Russia. Oil stocks in republic together with gas condensate make 2,8 billion t, gas stocks - 1,7 bln. m3.

The Tengiz deposit was opened in 1979 in Atyrau area, is one of large oil deposits of the world. Under forecasts, oil stocks make 3 billion 133 million t. In 1993 joint Kazakhstan-American enterprise "Tengiz-Shevroil" for the purpose of development of deposits of Tengiz and Korolev ­ in Atyrau area has been created­. For export maintenance of Tengiz oil in 2003 oil pipeline Tengiz - Novorossisk of 1580 km has been put in the extent in operation. Now oil recovery on the Tengiz complex makes 12 million t oil in a year.

In the shelf of the Caspian Sea the richest stocks ­ of oil (presumably 7 billion), gas condensate (1,6 billion), natural gas (5,9 bln. m³) are concentrated­.

Development of the Caspian shelf is a leading direction in petroleum industry of Kazakhstan. Here following ­ sites of extensive stocks of oil are known­: kashagan, Kurmangazy, Aktokty, Kajran and Shagan. In the future the Caspian region will rank with the largest oil-extracting regions ­(Western Siberia, Mexico, Gulf States). Development ­ of sea oil extracting on the Caspian shelf for Kazakhstan ­ has important strategic value.

Last years Mangistau basins - new deposits Kalamkas and Karazhanbas were mastered on peninsula Buzachi in the northeast part of the Caspian Sea. In vicinities ­ of Baikonur oil field of Kumkol was opened. Works on deposit development are spent by the Canadian firm "Hurricane". For processing of Kumkol oil by rail and to the oil pipeline goes on Shymkent oil refining ­ factory.

In the Western Kazakhstan the first Atyrau oil refining factory works in republic on which it is processed ­ atyrau-embi and mangistau oil.

Recently in Mangistau area the Aksu oil refining ­ factory is started­. For maintenance of factory with oil the Aktau-Atyrau oil pipeline is constructed.

In the future in the Western Kazakhstan it is planned to construct the oil pipeline ­ to Kumkol. It will consist of two pipelines: the Western Kazakhstan - Kenkijak and Kenkijak - Kumkol. Further it will be connected with Pavlodar and Shymkent oil refining ­ factories which work on the West Siberian oil transported on the oil pipeline Om - Pavlodar - Shymkent.

Now oil recovery in the country makes more than 70 million t. The basic gain of oil is necessary on Atyrau area­. In the long term oil recovery will increase: by 2010 oil recovery will make 84 million t, and by 2015 - 140-150 million t.

The gas industry. The gas industry of Kazakhstan ­ is the youngest branch of the fuel and energy industry. It is such kind of fuel which completely burns down and does not pollute air. Besides, gas can be transported ­ on pipelines.

The general stocks of gas taking into account the shelf of the Caspian Sea make ­ 6 bln. m³ is a twelfth place in the world.

In Kazakhstan gas is met in the form of natural gas (a deposit ­ of Tenge and Ustyurt on peninsula Mangyshlak) and passing gas of oil (Atyrau-Embi and Mangistau basins). The largest gas deposits are Karashyganak, Imash, Zhanazhol, the Western Abyss, Tasbolat, Shynar, Uzen, etc.

Since 1980 in the north of the West Kazakhstan area accustoms Karashyganak gas condensate deposit which stocks ­ make 70 % from all stocks of gas in Kazakhstan. Such large companies of the world participate in its extraction, as "ENI" (Italy), "Britishgaz", "Shevron Teksako" (USA), "Lukoil" (Russia). As a part of gas there are a lot of raw materials in the form of a condensate used in the chemical industry. On the Karashyganak deposit ­ except gas condensate there is also an oil, its stocks make ­ 1,1 billion t.

Now Karashyganak gas arrives for processing on the Orenburg ­ gas-processing factory. It is unprofitable for our country. In the future on Karashyganak it is planned to construct oil refining ­ factory capacity of 5 million t oil in year and gas-processing factory capacity of 5 billion m³ gas in a year.

In 2002 oil pipeline Karashyganak-Atyrau in length of 635 km has been constructed. Now the gas pipeline of Aksai - Red October - Kostanai - Astana is stretched. In Atyrau area on the Tengiz oil deposit and in New Uzen gas-processing factories work. Last years gas has been found in vicinities of Sarysu Zhambyl areas (the Amangeldi deposit) began to be extracted.

The gas production volume in Kazakhstan makes now 29,6 billion m3 that corresponds to 25 place in the world rating. In the long term gas production should make 46-50 billion m³. However gas consumption in our country twice exceeds its manufacture­. Now gas production in Kazakhstan provides 25 % of its requirement­. The reasons of insufficiency of gas production are connected by that the basic stocks of gas are in western, and consumers - in east ­ regions of the country. On the other hand, there are no gas pipelines on gas transportation in east areas. Building of similar gas pipelines should be carried out in the long term. Therefore Kazakhstan in maintenance with gas of northern and southern regions is in dependence ­ from the next gas countries. For maintenance of internal ­ requirements Kazakhstan receives from Turkmenistan of 6,8 billion m³ gas, from Uzbekistan - 7,2 billion m3 , from Russia - 2 billion m3 gas.

The coal industry. In territory of Kazakhstan ­ 3,3 % of world and 15,1 % of the CIS countries of stocks of coal, on which manufacture republic are concentrated ­ costs on the eighth place in the world, and among the CIS countries - on the third place (after Russia and Ukraine). The general stocks of domestic coal make 176,6 billion t, stocks of stone and brown coal are approximately identical. Now over 100 coal-fields are opened, 40 from which are comprehensively studied. The basic deposits of this mineral ­ are concentrated in northern and central areas of Kazakhstan.

Coal is important fuel and chemical raw material. High-quality kinds of coal are used for reception of the coke ­ applied in metallurgy for swimming trunks of metal.

Coke is a kind of fuel, forming as a result of high-temperature ­ heating of natural fuel without air access.

On thermal power stations for electric power reception ­ power coal which is applied also at factories, in a life is used­. In Kazakhstan there are Karaganda, Ekibastuz, Turgai coal basins and set of small deposits­. If before revolution from the Karaganda and Ekibastuz basins extracted on 90 thousand t coal in a year in days of the Soviet power the coal mining volume has reached 138 million t that completely ­ provided requirements of an economy of the country for coal and has given the chance to export it to other republics.

Now in connection with market difficulties the coal mining volume has decreased almost in 2 times.

The Karaganda coal basin was the third on the importance ­ coal base in Soviet Union. For the first time coal has been found here in 1831 by the Kazakh herdboy Apak Bajzhanov. The general geological stocks of the Karaganda basin giving ­ high-quality, energetically valuable coked coal, make 51 billion t; the coal basin area is equal to 3 thousand km², depth of basin - 50-300 m, a thickness of coal layer - 1,5-15 m. As a part of the Karaganda coal contains small quantity of sulphur and phosphate, therefore from it receive absolute coked coal. Presence in the Karaganda basin of iron and manganous deposits of Zhezdy and Atasu­, a close arrangement to them Topar and Baikonur dolomite have created possibility for fast development of the coal industry. Into the Karaganda basin enter Abai, Shahtinsk, Shahan and other coal deposits.

The Karaganda coal basin is equipped by modern technics­; 50 % of the made coal are used at the Karaganda metallurgical industrial complex, on thermal power stations, in municipal services ­ etc.; other part is transported to Russia, in areas of the Central Asia.

In Ekibastuz coal basin the cheapest coal is extracted in the country. For the first time coal has been found out here in 1867 by Kasym Pshenbaev. On the importance the Ekibastuz coal basin ­ takes the second place in republic. Here make half ­ of coal extracted in republic. Geological stocks of fuel ­ make 12 billion t. The thickness of coal layer - 100-120 m. to an earth surface allows to ­ extract the close arrangement of coal ­ in its open way. From the mountain enterprises for mining operations by open way by the largest is the open-cast mine "Athlete". Here 50 million t coal is annually extracted. In career a few rotor dredges are used ­, each of which develops on 5 thousand t coal at an o'clock.

Economic calculations have shown that Ekibastuz coal is more favourable ­ for using to furnaces of local thermal power stations (TPS), than to transport on a long distance.

Already now in state property three largest objects ­ in strategic raw branches are returned­. On November, 29th, 2007 the agreement on acquisition by holding on management of the state ­ actives of "Samruk" of 50 % of actives of coal cuts "Athlete­" and "Northern" in the Pavlodar area are signed­­. According to the document which has defined key parametres of the transaction, "Samruk" in common the company "Russian aluminium" will operate activity of coal cuts.

Earlier coal cuts "Athlete" and "Northern" were under control of the American company ASSESS Industries Lnc, and by summer of 2007 have been sold the incorporated company "Russian aluminium". The cut has been redeemed for maintenance of own requirements of developing ­ national economy. Presence of such strategic object ­ in state ownership has great value for the further ­ development of all coal industry of Kazakhstan and electropower ­ branch in particular. Over 80 % of the electric power in Kazakhstan is made on coal.

Moreover, within the limits of the governmental program of development of electropower ­ branch of the country for reduction of power deficiency the state starts realisation of such large-scale projects, as building Balkhash thermal power station, expansion of the Ekibastuz tate district power station-2, modernisation of Almaty power stations. Possession cuts "Athlete" and "Northern" allows to guarantee deliveries of coal for these projects and becomes the next step to a series of measures on maintenance ­ of national power safety.

On cheap Ekibastuz coal works from above 20 TPS Northern ­ Kazakhstan, Western Siberia and Ural Mountains.

Besides, there are following cuts of open-pit mining of coal: "Central", "East", "Northern", "Steppe". The companies of Kazakhstan, Russia, the USA and Germany are engaged in coal mining. On the Majkobe deposit near Ekibastuz brown coal is extracted in the open way.

In a mouth of the river Ile, there, where it runs into lake Balkhash, below Ile basin (stocks of brown coal) which will be mastered in the near future, and in district Raiymbek - the Ojkaragaj coal deposit is located­.

In the Aktobe area deposits of Zhajsan and Birshogyr are opened.

As a result of prospecting works spent since 1995 ­ stocks and quality of coal on the deposit ­ of Karazhyra (territory of the former Semipalatinsk range) are defined­. Here it is possible to construct an open cut. The reconnoitered stocks of coal (1 billion) will suffice for 93 years. Coal can be used for coking, briquetting and reception of gases. The deposit of Karazhyra should provide completely requirements of East - Kazakhstan area for coal. There is a coal mining on the Kendirli deposit. Now on the deposit of Kendirlik coal with a view of maintenance of the district is extracted and the considerable part is exported ­ to China. Prosperity of Kazakhstan depends on an effective utilisation of power branch of economy of Kazakhstan.