China Energy to look for coal fields in Kazakhstan
China Energy, the largest energy company specializing in coal production and processing in the world, is reviewing coal mines in Kazakhstan to select the best one. This is part of a broader effort to boost the development of coal chemistry in the country, according to Prime Minister Olzhas Bektenov.
«China Energy has confirmed its interest in implementing investment projects related to coal chemistry in Kazakhstan, amounting to $4 billion. Currently, the company is looking for a coal field that will suit its needs the most,» he said during a cabinet meeting attended by President Kassym-Jomart Tokayev.
In addition, Bektenov highlighted that Qarmet is set to launch a $262 million project to produce more than 15 different types of coal chemistry products from 200,000 tons of coal tar annually. He also noted that the construction of a $7.4 billion polyethylene production site with a capacity of 1.25 million tons will begin this year. Moreover, an investor is preparing the necessary documents for the construction of a $1.3 billion butadiene plant, while another investor, with support from the Development Bank of Kazakhstan (a subsidiary of Baiterek Holding), is about to start building an alkylate plant in the Pavlodar region.
In early November, First Deputy Minister of Kazakhstan Roman Sklyar discussed the development of coal chemistry in Kazakhstan with executives from China Energy Investment Corporation. At the time, the two sides talked about the prospects of collaboration in the coal chemistry sector and potential investment projects in Kazakhstan. During the meeting, Deputy Head of CHN Energy Investment Corporation Group Co. Ltd. Yan Guochun emphasized that his company was interested in expanding coal chemistry production in Kazakhstan.
China Energy Investment Corporation operates 97 coal mines with a total capacity of 650 million tons and holds leading positions in the global market. The company has assets in China, South Africa, Australia, Indonesia, Greece and Germany.
In 2023, Kazakhstan reported a 1.1% decline in its coal output, dropping to 112.7 million tons. The vast majority of this amount was traditionally used for power production (65.9 million tons), while 31.9 million tons were exported. An additional nine million tons and 5.9 million tons were supplied to the utility sector and industrial enterprises, respectively.
Kazakhstan is ranked among the top 10 countries with the largest coal reserves. Under the current rate of coal consumption, the country can rely on its 33.6 billion tons of coal for the next 300 years. Coal burning accounts for 70% of the electricity generated in Kazakhstan.
In June, Vice Minister of Energy Sungat Yessimkhanov announced that Kazakhstan plans to introduce new power-generating capacities of up to five gigawatts by 2035. According to the official, these new facilities will include unit No.1 of the Ekibastuz GRES-1, which will require two to three million tons of coal from Bogatyr Coal in Ekibastuz, units No.3 and No.4 of Ekibastuz GRES-2, as well as the construction of thermal and heating plants in Kokshetau, Semey and Ust-Kamenogorsk. However, in early 2024, Energy Minister Almassadam Satkaliyev revealed that the government would reduce the share of coal in the country’s energy system to 34%.
