BAKU, Azerbaijan, October 29. Wholesale coal
prices in Kazakhstan nearly tripled between 2015 and 2025, while
retail prices approximately doubled, according to the National
Energy Report prepared by the Kazenergy Association in cooperation
with S&P Global.
Prices for power producers and industrial consumers also more
than doubled in tenge terms between 2015 and 2024. The report
attributes the increases to higher underlying costs and growing
margins across the supply chain.
Despite the price increases, coal production remains relatively
inexpensive in Kazakhstan, at around $23 per tonne of oil
equivalent (toe), compared with other fuels. This makes coal an
important energy source for the country in terms of both
affordability and energy security, the report says.
“Kazakhstan is seeking to shift its coal strategy from using
coal solely as a fuel to using it to produce higher-value chemical
products. Deeper coal processing, coal beneficiation and coal
chemical production have been identified as priority investment
areas,” the report says.
Recent policy initiatives include a roadmap for the development
of the sector and plans for new projects aimed at modernizing the
industry and promoting coal chemical production. International
companies, particularly Chinese firms, have expressed interest in
these projects.
However, the implementation of these initiatives faces
significant challenges, including high capital costs, limited
access to international financing, intense global competition in
chemical markets, and water scarcity.
