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Energy Minister: Kazakhstan Needs Liquefied Gas For Petrochemical Industry

Kazakhstan’s Minister of Energy, Almasadam Satkaliyev, believes that liquefied petroleum gas (LPG) should primarily be used as a raw material for the country’s growing petrochemical industry, instead of its current widespread use as fuel for motor vehicles. “Liquefied petroleum gas is not used as [motor] fuel anywhere in the world. Instead, it is used as an important raw material for producing products with high added value,” Satkaliyev said at a government meeting on July 16, chaired by Prime Minister Olzhas Bektenov. Regarding data from the Ministry of Internal Affairs, Minister Satkaliyev said that in 2023, Kazakhstan had 582,000 motor vehicles running on LPG, an 18% increase compared to 2022 (491,000). Cheaper than gasoline, LPG is Kazakhstan's most popular and economical fuel for vehicle owners. The minister said that due to low prices for LPG, the country's motorists continue switching to this fuel type, thus increasing its consumption. Earlier reports said that in 2023, LPG consumption in Kazakhstan increased by 400,000 tons, or 28%, compared to 2022. Last year, LPG consumption volumes amounted to 2.2 million tons compared to 1.8 million tons in 2022. According to analysts, in 2024, LPG consumption in Kazakhstan may increase by another 200 thousand tons and reach 2.4 million tons. Satkaliyev continued by saying that the Energy Ministry had been allocating part of the LPG produced in Kazakhstan to industrial enterprises producing petrochemical products. Thus, there is a shortage of LPG, which stands at 20%—25%. According to the minister, Kazakhstan produced 1.6 million tons of LPG in 2023, and the projection for 2024 is the same: 1.6 million tons. The minister emphasized that three plants in Kazakhstan use LPG as a raw material for producing polypropylene and methyl tert-butyl ether. These projects have attracted $2.7 billion in investments and created 1.7 thousand jobs. Plans are in place for a project to produce butadiene, which will use butane from the Tengiz field as a raw material. The project will cost $1.4 billion and create 750 permanent jobs and up to 7,500 jobs in related industries. There are projects for the production of alkylate and polypropylene, which plan to invest $300 million and create 2 thousand jobs. The energy minister emphasized that implementing these important investment projects requires 345 thousand tons of LPG per year and asked the prime minister to ensure that the government prioritizes the use of LPG for the needs of the petrochemical industry.

Head of Kazakhstan Football Federation Under Investigation by UEFA

UEFA is investigating Adilet Barmenkulov, the president of the Football Federation of Kazakhstan. In 2022, the businessman succeeded Adilbek Jaxybekov - who had been at the helm of football in Kazakhstan since 2018. "Adilet Barmenkulov is being investigated for knowing about match-fixing and doing nothing about it, suggesting that he had a vested interest in the matches or in favors owed to him by other officials," Inside The Games reported. Barmenkulov posted a video statement on social media confirming that match-fixing had occurred in the past, but denying that the problem persists. Many prominent figures from the world of soccer have complained, stating that since he knew about it, Barmenkulov is responsible, whether through his actions or inaction. "I agree that it is difficult to change the structure of a soccer club when past victories were achieved through questionable means," Barmenkulov said in the video message. He argued, however, that leaders must act systemically rather than locally, and to bring order to soccer in the country it is necessary to act together, not on an ad hoc basis. Clubs must stop trying to bribe referees, he said, and "from now on, I will make corruption in soccer known and public". Inside The Games characterized Barmenkulov's statement as "clearly indicating not only his awareness but also his inaction on the issue of foul play". Earlier, Barmenkulov had been criticized by Kazakhs for hiring the Russian, Stanislav Cherchesov, as head coach of Kazakhstan’s national soccer team. Sources claim that Cherchesov, the former head coach of the Russian national team, will receive a salary of $1.2 million a year.

Corruption

Large Bribes Being Extorted from Graduates of Foreign Universities in Turkmenistan

Turkmenistan citizens graduating from foreign universities, are currently required to undergo a complex process to have their diplomas recognized in their home country. A source in the Main Department of Education of Lebap told Radio Azatlyk that Turkmenistan citizens graduating from pedagogical universities in CIS countries are obliged to enrol in a month-long advanced training course at the Pedagogical Institute in Turkmenabad to nostrify (recognize university qualifications) their diplomas and moreover, provide 17 references. According to graduates, the process also involves the extortion of bribes. Hakberdi, a Russian language teacher from Turkmenabad who underwent the diploma recognition process about five years ago, explained that the size of the bribe depends on the influential status of whoever is engaged to help. "From 2018 to 2019, the bribe could reach 10-15 thousand dollars. If you have an acquaintance in the ministry, the bribe will be smaller, but can rise if intermediaries are involved." In addition, when attempting to get their diplomas recognized, graduates can fall prey to fraudsters who promising help, take their money and disappear. In parallel with the season of diploma nostrification, the process of submitting documents and sitting exams for admission to foreign universities continues. Exams are taken online and because of internet issues, this can create new problems. "Since the speed of the Wi-Fi signal at home is inadequate," reported a resident of Dianev, "applicants from across the districts gather at the Turkmentelecom internet cafe in Turkmenabad but there are not enough computers and often queues from 6 a.m."

Kazakhstan Seeks to Increase Local Content in Oil and Gas Equipment Production

From July 10 to 12, the Kazakhstani city of Atyrau hosted the Oil and Gas Machine Building Forum. The Forum aimed to develop local content and support domestic manufacturers of oil and gas equipment and local suppliers of works and services for the sector. The event also included Open Doors Days for three major oil and gas operators in Kazakhstan: Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating B.V. As reported by the Kazakh Ministry of Energy, these three major subsoil users account for 70% of all oil and gas equipment purchases in Kazakhstan. Speaking at the Forum, Vice Minister of Energy Alibek Zhamauov said that both Kazakhstan’s president and prime minister outlined several specific tasks aimed at developing local content in the oil and gas sector. Particular attention, they said, should be paid to increasing the share of Kazakhstani goods, works and services in the sector’s purchases, creating new as well as modernizing existing production facilities, localizing the production of the most popular products in Kazakhstan, as well as moving design offices to the country, with the mandatory involvement of local engineers and design companies. Due to efforts of the Ministry of Energy, in May of this year contracts were signed between Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating B.V. and domestic manufacturers for the purchase of locally made oil and gas equipment worth $240 million. Speaking at the Forum, Leyla Gimranova, Deputy Director of the Project Department at Kazakh Invest, emphasized that oil and gas engineering could become a new growth point in developing domestic added-value production and import substitution. She said that last year, Kazakhstan produced oil and gas equipment for $72.7 million and imported such equipment for $1 billion. “This is a significant difference that needs to be reduced. Therefore, we are actively working to identify priority goods for import substitution, the production of which is possible based on existing domestic enterprises," Gimranova said.

Uzbekistan Creates Law to Address Excessive Energy Consumption

The law “On saving energy, its rational use and increasing energy efficiency" was approved at the plenary session of the Senate of the Oliy Majlis held in Uzbekistan on July 10. The law defines the tasks and rules for ensuring energy security, saving energy, increasing efficiency, and promoting rational use of resources, such as electric and thermal energy, fuel, and non-traditional energy resources in economic and social sectors. The law also establishes the responsibility for excessive energy resource consumption in Uzbekistan. Energy-saving directions and improvements in energy efficiency apply to the fields of construction and transport, buildings and structures, heat supply and utility companies, agriculture, and water management. According to the senators, the adoption of this law will help further optimize the costs of energy resources and create a legal basis for systematic monitoring of energy consumption efficiency.

Party Politics

It Wasn’t Like This Under Nazarbayev: Kazakhstan’s Party Political Landscape

Speaking on June 27 on the eve of Media Workers Day at a reception where awards were presented to distinguished journalists, Kazakh President Kassym-Jomart Tokayev paid special attention to the powers of the head of state. Tokayev emphasized that the term of presidential powers approved in the referendum is a reality that will not be altered through amendments to the Constitution. This means that in 2029, Kazakhstan will see a new president, chosen through a legal expression of its citizens' will. This new president will not appear out of nowhere; they will likely be nominated by one of the existing political parties, which will enter the electoral battle for the Mazhilis deputy mandates in 2028. The party leading this significant two-year electoral race will have its nominee occupy the presidency of Kazakhstan. The topic of the "problem-2029" is already a subject of discussion within the corridors of power. The current president's team has a dual task - ensuring the continuity of democratic and liberal transformations while preventing a resurgence of the Old Kazakhstan. Having been unable to change the country's leadership in 2022, Tokayev's opponents will likely pursue an institutional route. Historically, former president Nursultan Nazarbayev used a similar strategy, having first elected democratically, then extending his powers via a referendum, and gradually amending the Constitution to consolidate his rule without seeking further public approval. Could a current political party be used as a Trojan horse in such a scenario? Here are the players on the present political landscape. Amanat The most influential party in Kazakhstan, Amanat, which formerly supported Elbasy (Father of the Nation) Nursultan Nazarbayev, was founded in 1999 through the merger of several political organizations, with the largest being the Party of People's Unity of Kazakhstan (PNUK). Known as Otan and then Nur Otan (“Radiant Fatherland”) until it was rebranded in 2022, although modern sources attribute this merger to Nazarbayev, he was reportedly not focused on party building at that time. The Otan party, which resulted from the merger, emerged shortly after the early presidential election of 1999, where Nazarbayev won with a "modest" 80.97% of the vote. The runner-up in the election, Serikbolsyn Abdildin claimed that there had been widespread voter fraud and a failure to tally ballots properly, whilst the U.S. Department of State commented that the undemocratic nature of the election "cast a shadow on bilateral relations". In 2006, Otan held two congresses, during which three more political organizations joined: the Asar Party, founded by Nazarbayev's eldest daughter Dariga and her then-husband Rakhat Aliyev, as well as the Civic and Agrarian Parties, previously part of the AIST pre-election bloc. Following these mergers, Otan was renamed Nur Otan. After Rakhat Aliyev was charged, initially with the kidnapping and then with the murder of two executives at a bank he controlled in 2007, Dariga and her son took over his stake, swelling her fortune. In 2013, Forbes named her one of the fifty richest Kazakhs with assets of US$595 million, including a vast media empire. Under...