Invest in kazakhstan us companies look for the next big thing
OVERVIEW: KAZAKH-U.S. RELATIONS
U.S. companies have stood by Kazakhstan through good
times and bad. Peter Galuszka looks at the countries’
economic partnership and the role of U.S. investment
U.S. oil/gas production and reﬁnery
engineers study a 3D map projection of oil
reserves for an area near the Caspian Sea
WE HAVE THE ENERGY TO LEAD
The RWE Group is one of Europe’s largest energy corporations and we continue to work hard on building
still further on that position. Some 20 million electricity customers and 10 million gas customers across
Europe already rely on the RWE Group. Our customers and partners beneﬁt from our extensive experience,
reliability and expertise in all activities related to energy.
We ﬁrmly believe that Kazakhstan, Azerbaijan and Turkmenistan, indeed the whole Caspian Region,
represent an attractive investment opportunity for RWE. Kazakhstan’s many years of experience in the gas
industry make it an excellent prospect for a long-term business partnership and investment. Kazakhstan and
its Caspian neighbours have vast energy resources and can make a signiﬁcant contribution to Europe’s drive
for energy security. The region will play a strategically important role, especially in the diversiﬁcation of
Europe’s gas supplies in the years to come. RWE’s expertise, investment capabilities and partnership values
in the upstream, midstream and downstream energy business provide the essential ingredients for the
development of a beneﬁcial long-term energy partnership with Kazakhstan.
One step in this direction is the memorandum of understanding with Kazakhstan’s state assets management
holding company, Samruk, for a joint study into the use of coal gasiﬁcation and synthetic natural gas in
Kazakhstan. This example shows that together we can further strengthen the mutual beneﬁts entailed in gas
procurement activities. A successful study could provide Kazakhstan with an alternative usage of its vast
coal resources and also provide RWE with opportunities for gas procurement in Kazakhstan in the long term.
OVERVIEW: KAZAKH-U.S. RELATIONS
CHINESE INVESTMENT SURGES DURING CRISIS
China is quietly investing
more in Kazakhstan
as it seeks energy,
metals, cement, and
to feed its hunger for
resources at home.
“China is growing very
fast and is emerging as
a very serious investor,”
says Ambassador Erlan
Chinese foreign direct
investment from 1993 to 2008 nuclear units under construction.
totaled about $3 billion – roughly the Kazatomprom, Kazakhstan’s chief
same as Canada, South Korea and uranium producer, has agreed to be
Russia. That’s about to change in a big China’s main supplier. Westinghouse,
way. The U.S. government reports that with its 10 percent ownership by
China agreed to $13 billion in new Kazatomprom, is building four
investments in Kazakhstan in 2009. AP1000 reactors in China.
The oldest major project – the Working with the Kazakh National
Kazakhstan-China oil pipeline – Welfare Fund, China is providing
was completed ahead of schedule. technology and equity ﬁnancing for
Commenced in 1997, the 1,384- modernizing the Atyrau Oil Reﬁning
mile pipeline links Kazakhstan’s Plant, equity ﬁnancing for a cast iron
major hydrocarbon ﬁelds near Atyrau production facility, plus $10 billion
across Kazakhstan to the Chinese in export ﬁnancing by the Export-
border. The last phase of the project, Import Bank of China.
owned by China National Petroleum And China is helping build the
Corporation and KazMunaiGas, Zhetygen-Korgas railroad that will
opened ahead of schedule in mid- shorten the route between China and
2009. The pipeline is producing the Middle East, as well as construct
180,000 barrels per day and is the highway dubbed the “21st
expected to increase to 400,000. Century Silk Route” that will cut
In a related development, China’s transport time from Europe to China
sovereign wealth fund, the China from 45 to 11 days.
Investment Corporation, bought As Kazakhstan develops, relations
11 percent of KazMunaiGas, worth between Beijing and Astana are
$939 million, in September 2009. likely to mature, especially as
Keen interest is also evident in China’s energy demands continue to
nuclear power. China has 20 new grow dramatically.