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The Price of Liquefied Petroleum Gas Falls Below Production Costs in Kazakhstan

In a report on March 5th, Almasadam Satkaliev, Kazakhstan’s Minister of Energy, stated that in 2023 consumption of liquefied petroleum gas (LPG) by the country’s domestic market rose to 2.2 million tons; an increase of 400 thousand tons (or 28%) compared to 2022. Cheaper than gasoline, LPG is understandably the fuel of choice for vehicle owners and a sharp hike in the cost of LPG was met with nationwide objection. Mass protests staged in the western Kazakh town of Zhanaozen in January 2022 soon spread across the country and turned violent in the cities of Almaty and Astana. According to the energy minister, the current maximum wholesale price for LPG established by the state is lower than its production cost. While production varies from 60 thousand to 70 thousand tenge per ton, the wholesale price for manufacturing plants is set at 40,320 tenge/ton excluding VAT. “Due to the unprofitability of liquefied petroleum gas production, manufacturers are running at a loss and are unable to invest in either the maintenance or modernization of their plants,” stated the minister. The price of LPG in Kazakhstan, between 54-86 tenge per litre depending on the region, is the lowest among former Soviet states. For comparison the price per litre in Russia is equivalent to 165 tenge; in Kyrgyzstan, 159 tenge; in Azerbaijan, 171 tenge, and in Tajikistan, 273 tenge. To meet the immediate demands of the country's vehicle owners, a formal agreement has been made between the Ministry of Energy and Tengizchevroil for the monthly supply of 20 thousand tons of LPG. The national company QazaqGaz and shareholders of the North Caspian project are also poised to sign an agreement for the supply of up to 700 tons of LPG per annum from the Kashagan oilfield by the end of this year.

Kazakhstan to Build New Power Generation Facilities

To ensure Kazakhstan’s energy security and increase its export potential, the Ministry of Energy has adopted a development plan for the country’s electrical power industry. On March 5th, the Minister of Energy, Almasadam Satkaliev reported that under the new plan, scheduled to run until 2035, existing power generating facilities are to be modernized alongside the commission of new facilities with a total capacity of 26 GW. In the southern regions of Kazakhstan, gas, and steam generation projects with an installed capacity of about 2.3 GW are due for completion in 2025-2026. The projects comprise combined cycle gas turbines in Turkestan and Kyzylorda with a capacity of 926.5 MW and 240 MW, as well as combined cycle power generation units at two heating plants in Almaty with a capacity of 544 MW and 557 MW. Another combined cycle power plant with a capacity of 1.1 GW will be constructed in the Kyzylorda region. The plans also include new gas and coal-fired power generation projects in Kazakhstan with a total capacity of 6.7 GW and the conclusion of an agreement with Russia for the construction of coal-fired thermal power plants in the cities of Kokshetau, Semey, and Ust-Kamenogorsk. To achieve a 15% share of electricity generation by renewable energy sources by 2030, annual auctions will be held for a total capacity of over 6 GW (1,270 MW in 2024). Renewable energy projects with a total capacity of 3 GW are currently progressing in collaboration with Total Energies (France), Acwa Power (Saudi Arabia), and Masdar (UAE). Eleven renewable energy facilities with a total capacity of 259 MW are to be commissioned this year. Last month, Energy Minister Satkaliev reported that in 2023, Kazakhstan consumed 115 billion kWh of electrical energy, compared with 112.9 billion kWh in 2022, and produced 112.8 billion kWh, the same amount as in 2022. Last year Kazakhstan imported 3.4 billion kWh, and exported 1.4 billion kWh. In 2024, the country plans to generate 115 billion kWh. Last year, the volume of electricity generated by renewable energy facilities amounted to 6.675 billion kWh, including 3.8 billion kWh from wind power plants, 1.8 billion kWh from solar plants, and 993.8 million kWh from hydropower plants. The generation of electricity from renewable sources in 2023 thus amounted to just 5.9% of the country’s total. Looking to a greener future, Kazakhstan’s new goal is to achieve a 15% share of renewable energy sources in power generation by 2030, and a 50% share by 2050.

Kazakhstan Opens Al-Farabi Innovation Hub in Riyadh

A joint project between Kazakhstan and Saudi Arabia, the Al-Farabi Innovation Hub has newly opened in Riyadh. As reported on March 5th by the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry, the role of the Hub is to attract talented entrepreneurs and innovative start-ups from Kazakhstan to Saudi Arabia and support their relocation and growth in the region by providing seed investment from the Tumar Venture Fund as well as incubation and acceleration programs. “Kazakhstan already has experience in growing start-ups,” explained Kazakh minister Bagdat Musin. “Five years ago, we launched the Astana Hub, which has become one of the leading technology parks in Central Asia. We have also engaged global partners such as Google, Draper University, StartX, Microsoft, and the World Bank, to provide access to the best cutting-edge solutions. I believe that the opening of the Hub will allow Kazakhstan and Saudi Arabia to strengthen ties and make a qualitative contribution to economic development.” The Hub’s General Director Aslan Sultanov went on to state, “The Al-Farabi Innovation Hub will complement the infrastructure of the venture industry in Kazakhstan, giving start-ups from Central Asia and the Caucasus the opportunity to expand into Middle East and North Africa (MENA) markets, which comprise almost 493 million people.” The new Hub follows the launch on March 1st, of the Qaz Steppe Innovation Hub in Dubai to promote Kazakh IT services to international markets.

Centre for Environmental Diagnostics of Vehicles Opens in Tashkent

On March 5th, Uzbekistan’s President Shavkat Mirziyoyev visited a new centre for environmental diagnostics of motor vehicles in Tashkent. Environmental issues have become a major concern in Uzbek’s capital city, especially air pollution caused by harmful emissions from traffic. In a measure to stall the sharp increase in air pollution, the centre first assesses the level of harmful substances emitted by motor vehicles and depending on results, attaches color-coded stickers with chips to vehicles’ windshields. Plans are in place to divide the city's territory into several ecological zones. Entry will be limited in accordance with the level of pollutants emitted by vehicles, identified by their red, yellow, or green stickers. Drivers of vehicles that violate the rules will be automatically fined and the resulting revenue, invested in incentives to further improve the environment. The government plans to expand the initiative by installing some 100 automatic air monitoring stations and creating 84 registration and diagnostic centres for vehicles across the country. In a move towards tackling air pollution, the government will also encourage the purchase of greener, electric vehicles by reducing the fee for state license plates.

Plastic Bags, Utensils to Be Met With Fines in Kyrgyzstan’s Issyk-Kul Basin

A law imposing fines on the import and sale of plastic bags and utensils is aimed at reducing the harmful effects of polymeric materials on health and the environment in the Kyrgyz Republic, according to the press service of the Ministry of Natural Resources, Ecology and Technical Supervision of Kyrgyzstan. The ban will take effect in the resort and recreational area of Issyk-Kul, as well as in reserves and natural parks of Kyrgyzstan. The ban was signed by President Japarov last year, since when deputies and the Ministry of Natural Resources of have been working on finalizing its details. One sticking point is that the authorities still can't decide whether to ban all plastic or to make an exception for some products. Shashlyk vendor, Issyk-Kul; Photo: TCA "The list of plastic products banned for circulation includes all kinds of disposable plastic utensils, disposable plastic packaging for food, plastic bottles, disposable plastic packaging for eggs, plastic coffee capsules, [and plastic] bags for food," the law states. But, as the Ministry of Natural Resources notes, the law is still being amended and there is a lack of clarity. Meanwhile, food vendors in the Issyk-Kul region say that not all citizens are ready to give up plastic bags and bottles. Therefore, while large stores in Issyk-Kul have stopped selling disposable tableware and replaced them with paper products and Tetra Pak substitutes, the law is poorly enforced in markets and smaller outlets. Lake Issyk-Kul; Photo: TCA According to the Ministry of Natural Resources, Ecology and Technical Supervision, the Supervision Service has not imposed a single fine so far, with only warnings being issued. However, they say that as soon as all of the controversial issues have considered, sellers and producers will be fined. So far, the law applies only to sellers and manufacturers of plastic products. Private individuals can use bags, bottles and disposable tableware. In January of this year, the Issyk-Kul Region became the first in the country where a ban on the circulation of plastic was introduced. From 2027, the law will be expanded to ban the use of plastic containers throughout the country. Businesses are not satisfied, however, complaining that their opinion was not taken into account in drafting the law. In their opinion, it would have been better to prescribe economic incentives for businesses. Currently, they argue, all soft drinks and vegetable oils are bottled in plastic bottles, and it's difficult to find replacements for them. In addition, Kyrgyzstan does not yet have large production facilities for alternative containers such as paperboard-and-foil Tetra Paks or glass bottles. Most plastic goods are imported into Kyrgyzstan from abroad, mainly from countries which are not planning to give up disposable plastic containers and are only increasing their production. Meanwhile, Kyrgyzstan's environmentalists have long been sounding the alarm. The biggest danger to the country's ecology is plastic bottles and cellophane bags, which can be scattered by the wind over a large area. For example, the problem of toxic plastic pollution is particularly acute in...

Pandemic Hangover Continues to Affect Mental Health

According to the latest Sapien Labs Mental State of the World Report, Uzbekistan ranked last among 71 countries, including all other Central Asian countries (Turkmenistan was not included in the ranking). The ranking is based on the mood of residents and their outlook on life in 2023. Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan are included for the first time. The Dominican Republic tops the list, followed by Sri Lanka, Tanzania, Panama, and Malaysia. The United Kingdom occupies the penultimate place ahead of Uzbekistan. Some poor countries in Africa and Latin America have overtaken the developed countries of Europe and the Americas on a number of indicators. Researchers have noted a trend towards depressed moods since the Covid-19 pandemic - a trend which is still going strong after more than four years. They believe that low rates of mental wellbeing in rich countries are linked to multiple factors, including smartphone addiction, fast-food consumption, the breakdown of friendships and family relationships, and the rising isolation due to working from home. Furthermore, GDP per capita figures are inversely correlated with average mental wellbeing, once again confirming the old adage that "money can't buy happiness." In 2022, the results of a study on adolescent mental health were published in Uzbekistan for the first time. UNICEF, together with partner organizations, surveyed 22,854 students in 299 schools from all 14 regions to better understand the needs of adolescents and to identify school-related factors affecting their mental health and psycho-social wellbeing. The study found that more than 10% of students do not feel socially connected to their school and feel isolated. Also, a significant number of students - 15.4% - suffer from anxiety, and another 9.8% experienced depression. Based on this data, UNICEF experts recommended improving family and friendship connections, expanding social ties, and creating a comfortable school environment for adolescents. Scientists have noted that indicators of mental wellbeing have especially decreased among young people, who are most dependent on modern technology. Meanwhile, people aged 65 and older have not seen a strong deterioration in scores since 2010. Another conclusion reached was that the level of mental wellbeing depends on the frequency in which processed foods are consumed, which affects the onset of depression and reduced emotional wellbeing. An important factor was also the disruption of intra-family relationships. According to research, 10% of young people between the ages of 18 and 24 do not get along with anyone in their family and prefer not to see them, while the analogous figure among the older generation is only three%. Weak family ties, scientists say, quadruple the likelihood of mental-health problems in adulthood.