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The Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan and the Ministry of Energy of the Republic of Kazakhstan are developing measures to prevent the autumn shortage of jet fuel

26/08/2022

Due to seasonal preventive maintenance at domestic refineries and limited jet fuel production, the civil aviation industry is faced with jet fuel shortages every year.

A particularly difficult situation with the provision of jet fuel was observed at the end of last year, when refueling was practically “on wheels”. Due to the high demand in the domestic market of the Russian Federation, the import of jet fuel was difficult.

To find solutions, at the end of 2021, the MIIR and the Ministry of Energy of the Republic of Kazakhstan held a special meeting with the participation of major jet fuel suppliers, heads of airports, airlines, national companies KMG and KTZ, where an agreement was reached on the supply of kerosene by priority. So, first of all, aviation fuel should be supplied to domestic airlines performing passenger transportation, and only then to foreign airlines and cargo transportation.

Such a scheme for the distribution of aviation fuel is not subject to mandatory execution by resource holders of petroleum products, but it is advisory in nature and is aimed at preventing interruptions in domestic and international passenger traffic.

Tarlan Aero, in accordance with the agreement concluded with the airport of Nur-Sultan, provides foreign airlines with jet fuel at the capital's airport, and therefore it is also taken into account in the recommended distribution of jet fuel based on consumption and production volumes at the refinery.

For 2021 and 7 months In 2022, Tarlan Aero refueled WizzAir, FlyDubai, Turkish Airlines, Lufthansa, LOT, Aeroflot, Uzbekistan Airways, Belavia, Azimuth, RedWings, Corendon Airlines, Russia, as well as foreign airlines operating business aviation flights.

At the same time, for 7 months of this year. Tarlan Aero sold 14 thousand tons of aviation fuel to foreign airlines, 10.4 thousand tons are recommended for distribution for refueling foreign airlines.

The missing amount of jet fuel is imported by Tarlan Aero, with which it refuels business aviation flights.

It should be noted that the volume of aviation fuel consumption in 2021 amounted to 670 thousand tons, the volume of production - 580 thousand tons. For 7 months of 2022, the actual consumption of jet fuel has already amounted to 455 thousand tons with a production of 399 thousand tons. The consumption forecast for the entire current year is 1 million tons. Given that the production of jet fuel is expected at the level of 700 thousand tons.

Currently, the Ministry of Foreign Affairs and the Ministry of Energy of the Republic of Kazakhstan are preparing additional measures in order to exclude intermediary services and ensure uninterrupted supplies of aviation fuel. Including:

- transition to 100% sales of jet fuel through commodity exchanges (will ensure the transparency of the process of acquiring jet fuel directly from resource holders exclusively for civil aviation entities);

- consolidated purchase of imported jet fuel by KazMunayGas-Aero (will ensure a guaranteed volume and reduce the cost of jet fuel due to the purchase of a significant amount of imported jet fuel).

In general, in order to eliminate the shortage of jet fuel in the domestic market and dependence on imports, it is still necessary to increase the annual volume of jet fuel production by domestic refineries. This is especially relevant given the growth in the main indicators of the air transportation sector as a result of the gradual restoration of flights after the 2020 lockdown, as well as an increase in the number of technical landings of transit aircraft.