KMG’s Refineries Do Not Sell or Export Bitumen
The refineries of JSC NC “KazMunayGas” are only engaged in oil refining and manufacture of petroleum products and do not independently sell bitumen to road building companies.
The bitumen production and sales mechanism currently adopted by RoK is as follows:
- The RoK Ministry of Energy monthly approves the Plan for Road Bitumen Supply to Resource Holders, which specifies inter alia the road bitumen volumes to be sold through commodity exchanges (10% of each resource holder’s planned production volume).
- The resource holders sell their bitumen directly to road building companies.
The structure of JSC NC “KazMunayGas” includes two plants engaged in bitumen production: Aktau Bitumen Plant (Caspi Bitum) and Pavlodar Oil Chemistry Refinery (POCR). Both plants meet their production targets for 2022.
For 7 months of 2022, KMG’s two refineries have produced 401.2 thousand tonnes of bitumen, out of which 247.8 thousand tonnes have been produced by Caspi Bitum and 153.4 thousand tonnes have been produced by POCR.
The total bitumen production target for KazMunayGas’s two refineries in 2022 is 733 thousand tonnes. By achieving this target, KMG will cover approximately 70% of the national demand for road bitumen.
The bitumen produced at POCR and Caspi Bitum is only sold in the domestic market and not exported.