Kazakhstan intends to resolve the issue of aviation fuel shortage on the domestic market through imports from China. Today, the government is considering the option of purchasing 350-500 thousand tons of aviation kerosene from Chinese plants.
Previously, in the event of an aviation fuel shortage, Kazakhstan turned to Russia for assistance. Given the fact that the republic is a country with extensive oil reserves, how can we explain the situation in which we are falling behind neighboring countries in the need for petroleum products? The newspaper «Aikyn» addressed this issue.
There are three oil refineries operating in the country. Data from the Ministry of Energy indicates an increasing gap between the volume of refinery production in the cities of Atyrau, Pavlodar, and Shymkent and the actual market demand each year. For example, in 2020, our plants produced 432.2 thousand tons of aviation fuel, while the demand reached 476.7 thousand tons. In the current year, the production volume was 624 thousand tons, but the demand was 887 thousand tons. Thus, the shortfall amounted to 29.6%.
On one hand, the demand for aviation fuel has grown due to an increase in international transit flights through Kazakhstan. With Kazakhstan’s growing role as a regional transit hub in Central Asia, international flights have begun to stop more frequently at domestic airports for refueling. To cover the fuel deficit, the government seeks to diversify supplies and is considering the possibility of importing aviation fuel from China.
Negotiations are currently underway to sign a contract with the Chinese state company CNAF (China National Aviation Fuel Group). CNAF is a large company engaged in the supply of aviation fuel worldwide and holds a significant share of the domestic market in China (97%). According to the Minister of Transport Marat Karabayev, the primary task is to regulate the certification procedure for Chinese aviation fuel.
“We have met with representatives of the Chinese company that covers the entire aviation fuel market of the PRC. We are considering the possibility of purchasing 350-500 thousand tons,” noted the Minister.
On October 13, 2023, Air Astana and PetroChina International reached an agreement on cooperation in the supply of aviation fuel.
According to the information presented on the website Airastana.com, due to the absence of production of this type of fuel in Kazakhstan, the parties discussed the possibility of importing Jet A-1 and environmentally friendly aviation fuel (SAF) directly from Chinese refineries.
Jet A-1 is a type of fuel that meets IATA (International Air Transport Association) standards. The difference between the global Jet A-1 brand and the TC-1/RT grades used in Kazakhstan lies mainly in the technology of production and storage. The main advantages of Jet A-1 are its low flammability, low composition of exhaust gases when released into the atmosphere, and the extension of the maintenance cycle of aviation engines.
However, there are still questions that give pause before acquiring Chinese Jet A-1 aviation fuel. One of them is related to the state of the infrastructure. Nurlan Zhumagulov, the director of the public foundation Energy Monitor, points out that currently, airports in Kazakhstan are technically not ready to receive Jet A-1, as most of their tanks are designed for storage and refueling of domestic TS-1 aviation kerosene. Before starting to use Jet A-1, it is necessary to perform a preliminary cleaning or replacement of these tanks. That is, fuel storage places have their own standard.
It is important to note that the oil refineries in Kazakhstan are also capable of producing Jet-A1 aviation fuel that meets the international ASTM standard. In 2018, the three refineries in the country were fully modernized. The company «KazMunayGas» conducted a comprehensive technical audit at all enterprises, tested production technologies, and purchased the necessary equipment for full fuel certification. However, despite these improvements, the current state of the infrastructure of Kazakhstan’s airports and the transportation and logistics sector does not allow for the full production of Jet A-1.
According to Nurlan Zhumagulov, for a full transition to the production of Jet A-1, the entire cycle chain must be prepared, starting from the output of products from refineries to being accredited by international airlines. Nevertheless, Kazakhstan is also considering the possibility of a gradual transition to environmentally friendly fuel, following global trends.
In 2021, the European Union proposed to mandate aviation companies to use SAF due to the harmful environmental impact of aviation fuel obtained from oil. SAF is assessed by experts as a means to reduce emissions into the atmosphere by 65%, which can lead to an 80% reduction in greenhouse gas emissions.
Starting from 2025, the EU plans to achieve a 2-5% share of SAF in airport supplies, with a planned increase to 63% by 2050. However, this production requires significant investment. The countries of the European Union will have to spend 440 billion euros to switch to environmentally friendly fuel. Kazakhstan is also considering this possibility, and it may become a project of the future.
Translated articles may not reflect the editorial position and are published with the aim of increasing the awareness of our readers.
