Breaking News

Tweet TWEET

Kazakhstan Says no to Green Energy

ASTANA, Kazakhstan, Oct. 8, 2012 /CNW/ - Oil-rich Kazakhstan has ruled out 
adopting alternative energy methods for now saying that it will continue to 
exploit its vast natural resources for economical reasons. 
Speaking to reporters after the VII KazEnergy Eurasian Forum, the chief 
ofKAZENERGY Association, Timur Kulibayev said that the country was aiming to 
meet 10% of its energy demand through alternative energy. 
"It's very fashionable these days to talk about alternative energy," Kulibayev 
said adding that "We would look for alternative energy once its cost of 
production becomes lower and feasible." 
A news release issued by KAZENERGY said that Kazakhstan's 80% of power 
generation is generated by coal. The nation is home to one of the largest coal 
reserves the world. The second largest oil producer intheCISafter Russia 
is looking at immediate financial goals than long term environment goals. 
The landlocked nation's topography and terrain is perfect to become a major 
producer of wind and solar energy but Kulibayev saidthe countrywould wait 
for this sector becomingmore financiallyaffordable. It not only has gorges 
acting as wind tunnels but the southeast part of country also gets over 300 
sunny days in a year. 
Kulibayevisat the forefront of the development of oil and energy sector of 
the central Asian nation since last over 15 years. 
His statement was a boon for the foreign investors that are lining up to pump 
money in the oil, gas and coal sector. 
The two-day annual event attracted over 900 delegates including political 
leaders, diplomats, oil and gas industry leaders and chief executives of 
leading petroleum companies from across the world. The World Petroleum Council 
also held its three-day meet on the sidelines of the forum. 
Kazakh government officials also said they will not be able to supply any 
extra oil to its giant neighbor China in case there is a conflict in the 
Persian Gulf that may lead to fall in the global oil supply. India and China 
will be badly affected by oil supplies if there is any conflict in the Persian 
Gulf. 
Vice-Minister for oil and gas, Berik Tolumbayev said that Kazakhstan cannot be 
China's main oil supplier let alone be sole supplier. He said that a large 
number of Chinese companies have recently set up their offices in the country 
and Chinese investment is very important for Kazakhstan however, the supply 
lines to China were choked to its peak capacity. 
Kulibayev added that the supply to China can only be increased from 10 million 
tonnes of crude oil a year to20million tonnes once the pipeline to China 
is upgraded. He said the government was currently focussed in gasification of 
all the major cities and small towns. 
Kazakhstan'scurrent production is dominated by two giant fields: Tengiz and 
Karachaganak, which produce about half of Kazakhstan's total output of over 
1.6 million barrels per day. 
Kulibayev attributed the success of oil production to the conducive climate 
for foreign investment in oil and gas sector. "Foreign investors find it safe 
to invest money in our country because they can repatriate money in any 
currency at anytime as the national currency Tenge is fully convertible." 
Kulibayev was upbeat about the upcoming inauguration of production at Kashagan 
oil field, which was discovered in 2000 and is described as 
theworld'slargest every discovery of a field in the last 30 years. 
The field is currently being developed by a group of partners including Shell, 
Exxon Mobil, Total, ConocoPhillips, Kazakh state-run oil company KazMunaiGas, 
INPEX andEni. Eni is responsible for phase I of the field's development, 
while Shell is responsible for production operations. The total cost of 
project isnot yet clear due to uncertainty about financial requirements of 
the second phasewhereas the phase one will cost $46 billion. 
Meanwhile, the World Petroleum Council also held its three-day meet on the 
sidelines of the forum. 
The World Petroleum Council President Roberto Bartini said that more than 20 
trillion dollars would be invested in the oil and gas industry field in the 
next two decades. 
According to International Energy Association, another $38 trillion would be 
required for the development of infrastructure for the future needs of energy 
by 2035. IEA official Ulrich Benterbusch said the dependence of oil for energy 
needs would reduce to 27 from percent from the current 35% in the next few 
years. 
Press Centre +7-7172-979398 +7-7172-979391(fax) reception@kazenergy.com 
SOURCE: KAZENERGY 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/October2012/08/c5038.html 
CO: KAZENERGY 
-0- Oct/08/2012 15:25 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.