Demand for petroleum products decreased in Kazakhstan due to coronavirus

JSC NC "KazMunayGas" (hereinafter – KMG) informs that due to the introduction of quarantine in large cities of Kazakhstan and a decrease in the consumption of petroleum products, refineries are operating at minimum balanced capacities. In Kazakhstan, oil refining is carried out at four enterprises: Atyrau Oil Refinery LLP, Pavlodar Petrochemical Plant LLP and PetroKazakhstan Oil Products LLP (Shymkent Refinery), as well as the bitumen plant of JV CASPI BITUMEN LLP. Thus, in April 2020, the demand for the main types of petroleum products significantly decreased: for gasoline and diesel fuel – by 40%, for jet fuel – by 70%. This is evidenced by the analysis of the dynamics of applications from oil suppliers entering refineries. In order to avoid overstocking, the volumes of oil refining and production of petroleum products at Atyrau, Pavlodar and Shymkent refineries have been reduced to a minimum. The factories continue their activities. Strengthening of security measures In connection with the coronavirus pandemic (COVID-19), crisis management headquarters have been operating at the factories since March 15, coordinating their work with the central headquarters of the national company on a daily basis. Unprecedented preventive measures have been taken: sanitary-disinfection and checkpoint regimes have been strengthened at administrative and production facilities; up to 70% of the administrative staff of enterprises have been transferred to remote operation; the movement of factory workers between structural divisions is restricted; daily monitoring of the health of personnel is carried out; permanent disinfection of premises, vehicles and factory territories is carried out. KazMunayGas provides factories with a supply of water, food, essential goods, medicines, personal protective equipment for a period of at least 2 months. Employees are equipped with personal protective equipment – medical masks, nitrile gloves, antibacterial agents. Results of modernization Recall, as a result of the modernization of three refineries (Atyrau, Pavlodar and Shymkent), it was possible to fully cover the needs of the domestic market in petroleum products. The refinery's oil refining capacity has been increased to 17.5 million tons per year, and the refining depth has been increased to 90%. Today, Kazakhstanis are provided with gasoline of ecological classes K4 and K5 (Euro-4 and Euro-5, respectively). In 2019, excess gasoline was exported to the near and far abroad. According to the results of 2019, the volume of hydrocarbon processing in Kazakhstan (taking into account the share of KMG) amounted to 13,822 thousand tons, or 3% more than in 2018. In 2019, the volume of production of petroleum products, taking into account the operating share of KMG, amounted to 12,513 thousand tons of finished products, which is 361 thousand tons (3%) more than in 2018.