Organisation of the energy sector
Kazakhstan is the largest economy in Central Asia and home to more than 18 million people. As a country rich in coal, oil, natural gas and uranium, Kazakhstan’s economic focus remains firmly on its industrial sector and the extraction and processing of its natural resources. There is also enormous potential for renewable energy in Kazakhstan, particularly from wind and small hydropower plants. Kazakhstan’s total energy production covers more than twice its energy demand, which is why in 2018 Kazakhstan was the world’s ninth-largest exporter of coal, ninth of crude oil and 12th of natural gas.
Energy accounts for about 21% of the country’s gross domestic product (GDP), and approximately 62% of its exports.1 Interestingly, coal represents around half of Kazakhstan’s energy mix (50% in 2018), followed by oil and natural gas (both with 25% shares), whereas the share of natural gas in the total final consumption (TFC) was only 13% in 2018.
This article was first published in GLI - Energy 2021
Authors: Shaimerden Chikanayev, Partner; Lola Abdukhalykova, Counsel, GRATA International Kazakhstan