Kazakhstan is preparing to boost its oil exports to Germany in response to increased demand, according to Energy Minister Almasadam Satkaliev. Germany has requested that Kazakhstan more than double its oil deliveries, increasing the target to 2.5 million tonnes.
“We plan to export 1.2 million tonnes to Germany by the end of the year,” Satkaliev told Interfax on Wednesday. “They have asked us to raise this to 2.5 million tonnes overall.”
However, Satkaliev did not specify whether Kazakhstan would be able to meet this higher target or provide a timeline for when it might be achieved.
Earlier this month, President Kassym-Jomart Tokayev confirmed Kazakhstan’s willingness to increase oil shipments to Germany. This comes as part of Kazakhstan’s ongoing commitment to being a reliable energy partner for the European Union, especially as Germany seeks alternatives following the EU’s embargo on Russian oil.
In 2023, Kazakhstan supplied nearly one million tonnes of oil to Germany through the Druzhba pipeline, one of the longest oil pipelines in the world.
The Druzhba pipeline has played a crucial role in positioning Kazakhstan as an important supplier to Europe. Kazakhstan began oil shipments to Germany in February 2023 after a transit agreement was reached in December 2022 between KazTransOil and Russian oil company Transneft. By the end of that year, the Karachaganak oil field had delivered 933,000 tonnes of oil, just under the 1.2 million tonnes target.
KazMunayGas has since extended its oil supply agreement to Germany through Druzhba until the end of 2024.
This expansion of Kazakhstan’s role comes after Germany halted Russian oil imports via Druzhba in early 2023 in response to the EU’s sanctions on Russia, which were imposed after Russia’s invasion of Ukraine in 2022. The EU sanctions included a two-thirds ban on Russian oil imports. In response, Europe has sought to reduce its dependence on Russian energy by conserving resources, exploring new suppliers, and accelerating the shift to renewable energy like wind and solar.
With Europe reducing its reliance on Russian oil, Kazakhstan’s role in meeting the EU’s energy demands has become more important. The country’s abundant energy resources position it to play a key role in Europe’s oil supply.
Kazakhstan is the ninth-largest crude oil exporter globally, holding three percent of the world’s oil reserves. It is also the third-largest oil producer in the Caspian region, following Russia and Iran.
More than 70 percent of Kazakhstan’s oil exports go to the European Union, making Kazakhstan the third-largest non-OPEC supplier to the bloc. This solidifies the country’s role as a significant player in Europe’s energy market, where external suppliers are critical to meeting demand.
You Might Be Interested In
- How is Ocean Energy Stored?
- How Ocean Thermal Energy Works?
- Is Ocean Thermal Energy Renewable or Nonrenewable?