Is Kazakhstan at a crossroads in its energy sector?

Kazakhstan, a vast and resource-rich nation in Central Asia, is at a crossroads in its energy sector. With a growing emphasis on sustainability and a need to align with global decarbonization efforts, the country is embarking on a transformative initiative that aims to ensure the security and reliability of its energy supply.

How much energy does Kazakhstan use?

In 2018, Kazakhstan’s energy consumption (measured by total primary energy supply) was 76 Mtoe, comparable to consumption in the Netherlands (73 Mtoe). Among EU4Energy focus countries, Kazakhstan is the second-largest energy consumer after Ukraine.

Why is the energy sector important in Kazakhstan?

Although Kazakhstan is aiming at greater economic diversification, the energy sector remains important and assures energy security for the whole economy. Kazakhstan is a major producer and exporter of all kinds of fossil fuels.

Is Kazakhstan a major energy exporter?

Kazakhstan is also a major energy exporter. In 2018, it was the world’s 9th-largest exporter of coal, 9th of crude oil and 12th of natural gas. In 2018, Kazakhstan’s energy consumption (measured by total primary energy supply) was 76 Mtoe, comparable to consumption in the Netherlands (73 Mtoe).

What is Kazakhstan's energy mix?

Coal represents around half of Kazakhstan’s energy mix (50% in 2018), followed by oil and natural gas (both with 25% shares). Coal is mostly transformed into electricity and heat before reaching the final consumer. Coal fuels around 70% of electricity generation (in 2018), followed by natural gas (20% in 2018).

Are energy prices a social concern in Kazakhstan?

The report recognises that energy prices are a significant social concern in Kazakhstan. A rise in prices for liquified gas used in vehicles contributed to the unrest that gripped the country in January 2022. However, low prices have made it difficult to diversify the types of energy used for the domestic market and to promote energy efficiency.