“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

Coal market

The coal industry is one of the most important resource industries in the Republic of Kazakhstan. According to the BP Statistical Review of World Energy, as of 2018, Kazakhstan ranks eighth in the world in terms of proven coal reserves – 25.6 bln. tons or 2.5% of the world total.

According to the Statistics Committee of the RK MNE, the country’s coal production amounted to 113.7 mln. tons of coal in 2018 (excluding coal concentrate) or 105% against the same indicator in 2017 (107.9 mln. tons of coal).

Power generating coal market in Kazakhstan is relatively fragmented – the major players are “Bogatyr Komir” LLP (“Samruk-Energy” JSC and “RUSAL” UC), “EEC” JSC ("ERG" LLP), “Shubarkol Komir” JSC ("ERG" LLP), “Kazakhmys Corporation” LLP, “Karazhyra” JSC, “Angrensor Energy” LLP.

thous. tons

No.

Region

2017

2018

Δ. %

1

Pavlodar

62,467.9

70,325.2

13

2

Karaganda

35,909

34,987.3

–3

3

East-Kazakhstan

6,867

8,290

21

4

Others

721

100.9

–86

 

Total for the RK

105,964.9

113,703.4

7

General scheme of coal sales

Power systems of Nur-Sultan, Almaty, Karaganda, Petropavlovsk, Pavlodar, Stepnogorsk cities and Ekibastuz SDPP‑1, SDPP-2 are among the major consumers of “Bogatyr Komir” LLP in Kazakhstan.

To receive coal, the power plants of Kazakhstan arrange on their own the transportation of coal from Ekibastuz station ("Bogatyr Komir" LLP) to the destination station.

Coal mining, mln. tons

Following the results of transactions on the stock exchange, municipal coal is shipped in two ways: by railway and motor transport. Boiler coal houses in rural areas are the consumers; Ekibastuz coal is a fuel specified on their nameplates.

According to results of 2018, the Company’s share of the total coal produced in Kazakhstan amounted to 39.5 % and 59 % of the coal mined in Ekibastuz coal deposit.

According to results of 2018, 45,158 thous.tons were sold by "Bogatyr Komir" LLP, including:

  • to the domestic market of the Republic of Kazakhstan – 35,572 thous. tons, which is 11 % more than in 2017 (30,693 thous. tons), including for household needs – 1,519 thous. tons;
  • for exports (RF) – 9,587 mln. tons, which is 5.7 % less than in 2017 (10,166 thous. tons).

The increase in coal sales in the domestic market amounted to 4,879 thous. tons, which is driven by the growth in demand of Kazakhstan energy producing organizations and shipment to new consumers.

The decrease in coal sales for export by 579 thous. tons or 6 % is connected with the decrease in demand by the Russian enterprises.

Forecast for the future period:

Coal sales volume in the forecast for 2019 will decrease by 2.9 mln. tons or by 6.4 % as compared to the actual figure of 2018. In the forecast for 2020, coal sales will increase by 1.5 % or by 0.6 mln. tons against 2019.

Coal sales to consumers in 2017–2018

No.

Region

Volume of sales. thous.tons

Δ. %

2018/2017

2017

2018

1

“APP” JSC

3,256

3,299

101.3

2

“Karaganda Energocenter” LLP

3,301

3,521

106.6

3

“Astana –Energia” JSC

3,525

3,640

103.2

4

“Pavlodarenergo” JSC PCHP-2.3

1,895

3,289

173.6

5

“Stepnogorsk CHP” LLP

869

984

113.3

6

“ESDPP-1” LLP

8,850

11,559

130.6

7

“ESDPP-2 Plant” JSC

3,456

3,285

95.0

8

“Bassel Group LLS" LLP

544

605

111.2

9

“SevKazEnergo” JSC

2,806

2,672

95.2

10

“Pavlodarenergo” JSC ECHP

505

513

101.6

11

SE based on the REM “Kokshetau Zhylu”

295

323

109.5

12

“GRES Topar” LLP

0

359

 

13

“Sogrinsk CHP” LLP

0

5

 

14

Household

1,390

1,519

108.6

 

Total for the domestic market of the RK

30,693

35,573

115.9

15

Reftinsk GRES (RF)

9,936

9,564

96.3

16

Serovsk GRES (RF)

41

0

0.0

17

Troitsk GRES (RF)

143

9

6.4

18

Кurgan CHP (RF)

37

0

0.0

19

Yarovoe CHP (RF)

0

14

0.0

20

Kyrgystan

9

0

0.0

 

Total for export to the RF

10,166

9,587

94.3

"Bogatyr KOMIR" LLP coal sales (thous. tons)