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KAZAKHSTAN

(updated on Dec. 2006)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

Kazakhstan is a newly independent Euro-Asian republic, created in 1991 with the dissolution of the former USSR. The total length of its borders is more than 15,000 kilometres and it has an area of 2.7 million square kilometres. To the west of the country is Eastern Europe. To the east and to the southeast are the Altai and Tyan Shyan mountains. Kazakhstan borders with China in the southeast, with Ural and Siberia regions of Russia in the north, and with Central Asian countries, Uzbekistan, Kyrgyzstan and Turkmenistan, in the south. It has a coastline of 2 320 kilometres on the Caspian Sea. The climate is strongly continental, but with wide variations throughout the territory. Average temperatures in January range from -18°C in the north to -3°C in the south; July averages are 19°C in the north and 30°C in the south. Levels of precipitation are equally varied with average annual rainfall in mountainous regions reaching 1,600 mm and central desert areas less than 100 mm. Lowest point is Vpadina Kaundy -132 m and the highest point Khan Tangiri Shyngy (Pik Khan-Tengri) 6,995 m.

Kazakhstan’s population is about 15 million from more than 100 nationalities (Table 1), but mainly Kazakh and Russian. To the October of 2004, the population growth rate is estimated more then -1% in comparison with 2000. The population density to the first of October of 2004 is estimated at 5.52 people per square kilometre (Table 2). The government moved in December 1998 from Almaty to Astana.

TABLE 1. POPULATION INFORMATION

1.1.1.  Economic Indicators

Kazakhstan, the largest of the former Soviet republics in territory, excluding Russia, possesses enormous fossil fuel reserves as well as plentiful supplies of other minerals and metals. It also is a large agricultural - livestock and grain - producer. Kazakhstan’s industrial sector rests on the extraction and processing of these natural resources and also on a growing machine-building sector specializing in construction equipment, tractors, agricultural machinery, and some defence items. In 1995-97, the pace of the government programme of economic reform and privatization quickened, resulting in a substantial shifting of assets into the private sector. Kazakhstan enjoyed high rate growth thanks largely to its booming energy resources sector, but also to economic reform, good harvests, and foreign investment.

The opening of the Caspian Consortium pipeline in 2001, from western Kazakhstan’s Tengiz oilfield to the Black Sea, substantially raised export capacity. For the last years the volume of mined and exported hydrocarbon raw product have tripled. The country has embarked upon an industrial policy designed to diversify the economy away from over-dependence on the oil sector, by developing light industry. The national development plans focus on:

• The increase to the year 2015 of annual oil mining up to 150 million tons and enter the top five oil producing countries;
• The construction in Uralsk town of a plant that will produce pipes for transcontinental oil- and gas pipe lines;
• The development of attendant mineral resources fields (sulphur, radium, bismuth etc ones);
• The achievement in 2030 the annual uranium mining of 15 thousand tons and be the world leader in that field;
• The intensification the cycle of uranium raw material processing - from fuel pellet production to the production and export of energy.

Historical Gross Domestic Product (GDP) data are given in Table 2.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

1.2.  Energy Situation

Kazakhstan, the second largest of the former Soviet republics in territory, possesses enormous fossil fuel reserves (see Table 3) as well as plentiful supplies of other minerals and metals. It also is a large agricultural - livestock and grain - producer. Kazakhstan’s industrial sector rests on the extraction and processing of these natural resources and also on a growing machine-building sector specializing in construction equipment, tractors, agricultural machinery, and some defense items.

TABLE 3. ESTIMATED ENERGY RESERVES

(*) Sources: 20th WEC Survey of Energy Resources, 2004 and Uranium 2005: Resources, Production and Demand ("Red Book")
(1) Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(3) Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(4) Reasonably Assured Resources (RAR) under < USD 130/kgU
(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology
Source: IAEA Energy and Economic Database

Power plants fuelled with coal and black oil are the basis of Kazakhstan’s electrical energy. Coal is the country’s largest industry, with planned further development if corresponding investments are secured. Coal reserves are estimated at 64 billion tons. Annual hard coal production is about 111.8 million metric tons, brown coal production is estimated at 4.6 million metric tons. Kazakhstan also has a well developed oil and gas industry. More than 1 600 oil and gas fields have been located in Tengiz and Karachaganak containing more than 2.9 billion tons of conditional fuel. Natural gas production was estimated at 5 416 million cubic metres in 1993. Kazakhstan has begun building a major oil pipeline, 1 200 kilometres from the west to the east. Construction of three new oil refineries is planned. Every year, about 25 million tons of liquid hydrocarbons and seven billion cubic meters of natural gas are extracted. About 20% of the world’s uranium reserves are in Kazakhstan.

TABLE 4. ENERGY STATISTICS

1.2.1.  Energy Policy

Kazakhstan is a net energy exporter, with large reserves of uranium, oil and coal. Fossil-fired power plants are the basis of the electric energy. The energy policy aims to achieve energy independence through electric power production with maximum use of cheap, low-grade coal. Introduction of nuclear power is included as the necessary option for the energy security.

There are six gas pipelines that connect Kazakhstan to other central Asian republics and Russia, but the gas producing regions in the western part of Kazakhstan are not connected to the populous southeast and industrial north parts of the country. Kazakhstan has a major need for more gas pipelines. Kazakhstan is rich in natural resources, but its power sector needs considerable rehabilitation and upgrading to improve the efficiency of energy production and use. The TRACECA Program (Transport System Europe-Caucasus-Asia) is developing an East-West corridor from Central Asia, through the Caucasus, across the Black Sea to Europe.

Kazakhstan is in the process of transition toward a free market, privatization in energy, and encouraging foreign investment to exploit oil and gas resources of the country. In 1997, the government of Kazakhstan issued a decree on privatization and restructuring in the energy sector. Through this decree, all companies in the energy sector have gone through an incorporation process and are legally prepared for future privatization and restructuring. The Ministry of Energy and Mineral Resources is the main government entity responsible for implementing the policy.

The energy policy of Kazakhstan aims to achieve energy independence through electric power production with maximum use of its cheap, low-grade coal. Table 5 shows the production of coal, oil and natural gas in the last few years.

TABLE 5. DOMESTIC COAL, OIL AND NATURAL GAS PRODUCTION

1.3.  The Electricity System

The structure of the energy sector of the Republic is shown in Figure 1. The total length of electric lines of all voltages is 460,000 kilometres. The first section of the international Siberia-Kazakhstan-Ural transmission line (1,900 kilometres) has been placed in operation. This line is expanded to the south to connect north and south Kazakhstan and the power grids in Central and Middle Asian countries. Electricity production is given in Table 6.

The biggest producers of electricity in Kazakhstan are - the "Euro-Asian Power Corporation" (in 1998 14% from total power production), the Joint-stock Company "GRES-2" Pavlodar Region (8.9%), the "Kazakhmis Corporation" (8.5%), the Closed Joint-stock Company "Almaty Power Consolidated" (7.8%), the Open Joint-stock Company "Ispat-Karmet" (6,8%), LLP, "Karaganda Power" (4.4%) and the Joint-stock Company "Aluminium of Kazakhstan" (3.9%).

TABLE 6. PRODUCTION AND DISTRIBUTION OF ELECTRICITY PRODUCTION

TABLE 7. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

TABLE 8. ENERGY RELATED RATIOS

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and current nuclear power organizational structure

2.1.1.  Overview

The nuclear scientific industrial complex in Kazakhstan was established as a unified part of atomic industry and science in the former Soviet Union.

Kazakhstan’s uranium industry consists of uranium prospecting firms, a number of natural mines using mining and underground leaching techniques, two U3O8 production plants at Aktau and Stepnogorsk, and a metallurgical plant producing metaloceramic fuel pellets for NPP fuel assemblies. The power plant at Aktau (MAEC) has been shut down in June 1999 and defuelling took place in October 2000. It consisted of natural gas units and a nuclear unit. The latter unit is a BN-350 fast neutron reactor with sodium coolant.

On the territory of the former Semipalatinsk Nuclear Test Site three research reactors are engaged in testing and development of nuclear space engines and safe nuclear power plants. The fourth research reactor is engaged at the Institute of Nuclear Physics near Almaty. In 1992 "National Nuclear Centre of the Republic of Kazakhstan" was created by the Government Decree. Now there are three Research Institutes are belonged to the Republic State Enterprise "National Nuclear Center of the Republic of Kazakhstan". They are:

Daughter State Enterprise "Institute of Nuclear Physics" situated near Almaty;
Daughter State Enterprise "Institute of Atomic Energy" situated in Kurchatov;
Daughter State Enterprise "Institute of Radiation Safety and Ecology" situated in Kurchatov.

2.1.2.  Current Organizational Chart

Figure 2 shows the institutional organization of the nuclear industry in Kazakhstan.

2.2.  Nuclear Power Plants: Status and Operation

2.2.1.  Nuclear reactor

BN-350 reactor facility - fast neutron sodium-cooled reactor - is located near Aktau city in the part of the eastern Caspian Sea shore belonging to the Republic of Kazakhstan. It was designed and built for electricity generation and seawater desalination for the Aktau region.

The BN-350 reactor was commissioned in 1973 and operated for its design life of 20 years.

In 1993 on the basis of estimation of actual reactor condition, qualified personnel availability and taking into consideration significant progress in fulfillment of measures by safety enhancement it was concluded about possibility of extension of BN-350 reactor facility lifetime until 2003. Thereafter it operated on the basis of annual licenses of the regulatory body - The Kazakhstan Atomic Energy Committee (KAEC) and positive conclusion of its safety level from General Designer (VNIPIET, St. Peterburg, Russian Federation), Chief Designer (OKBM, Nizhni Novgorod, Russian Federation) and research Manager (FEI, Obninsk, Russian Federation) of reactor facility.

Due to financial and technical problems it was made conclusion that the further use of reactor is not safe. In April of 1999, the Government of the Republic of Kazakhstan adopted the Decree on the Decommission of BN-350 reactor.

As the decision on the reactor decommissioning was adopted before the end of scheduled operation (2003), the plan to decommission the BN-350 reactor had not yet been developed. To determine the activities required for ensuring reactor safety and preparation for decommissioning, the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan had developed and approved a "Plan of priority measures on BN-350 reactor decommissioning". This plan has the status of managerial and ruling document and defines the activity on provision the safety BN-350 and preparation to decommissioning during the period while the "Project of BN-350 Decommissioning" has not been approved. By now the following activities have been fulfilled:

• The core is discharged. The fuel has been packaged into canisters. Technical Task for Technical Project Design of transportation and storage of BN-350 spent fuel has been developed and approved. The 8-canister Technical Project version has been selected. Storage facility design has been developed.
• Cesium cleaning from primary sodium has been completed. Primary sodium has been drained into the storage system and frozen. Secondary sodium is partly drained and frozen in storage system and remaining sodium is frozen in the secondary loops. Technical Design for sodium residuals removal has been developed. Technical Design for sodium processing has been developed and sodium processing facility construction was started.
• Liquid Radioactive Waste Processing Facility (LRWPF) Technical Design has been developed.
• Technical Task for Solid Radioactive Waste Processing Facility design has been developed.
• The main works on Combined Engineering and Radiation Survey of systems and components of first and second cooling circuits as well as of other reactor plant engineering systems and external communications have been completed.

2.2.2.   Research reactors

TABLE 9. STATUS OF NUCLEAR POWER PLANTS

2.3.  Supply of NPPs

A joint resolution on nuclear safety and technical support for nuclear energy facilities in Kazakhstan was signed between Kazakhstan Atomic Energy Agency (KAEA) and Russian Federation’s Ministry of Atomic Energy in 90-teens.

The BN-350 reactor was designed and constructed by organizations of the former Soviet Union, under the supervision of the Ministry of Atomic Energy (MINATOM). The chief scientific supervisor is the Institute of Physics and Power engineering (IPPE, Obninsk). The chief designer is the Experimental Design Bureau on Machinery Building (OKBM-N, Novgorod), and main constructor is the All Russian Scientific Research and Design Institute for Power Technologies (VNIIPIET, Moscow). The plant is operated by “MAEC-Kazatomprom” LLP, which is affiliated enterprise of the National Atomic Company “KAZATOMPROM”. At the present, the regulatory body supervising the plant safety is the Kazakhstan Atomic Energy Committee (KAEC).

2.4.  Operation of NPPs

The BN-350 reactor is owned by National Atomic Company ‚KAZATOMPROM” and operated by LLP “MAEC-Kazatomprom”. The reactor was shut down according the decree of the Kazakhstan Government on April 22, 1999. The decision was taken to place it into SAFSTOR state for 50 years with subsequent final dismantling. Now the works on putting of the reactor into SAFSTOR are carrying out. The fuel is unloaded and packaged into canisters and now they are in a temporary store in the reactor cooling ponds.

About 220 people are working at the power plant. There are 5 shifts. The task of these shifts is maintenance of the reactor in nuclear, radiation and fire safety.

2.5.  Fuel Cycle and Waste Management

Kazakhstan has more than 50 uranium deposits in six provinces: the Kokshetau province in the north and the Pribalkhashsky province in the south have endogenetic type uranium deposits; Iliskay, Chu-Sarusu, Sur-Darya, and Prikaspiy provinces have endogenic type deposits. Deposits in Chu-Sarusu and Sur-Darya provinces are located in sand penetrating sediments and are useful for in-situ leaching processes.

Waste from uranium mining and milling constitutes more than 90% of all radioactive waste in Kazakhstan. Therefore, implementation of the Republic's Concept on the radioactive waste management is the main task.

The Ulba Metallurgical Plant (UMZ) started production of UO2 fuel pellets in 1976. Physical and chemical technologies are used at all stages of production, from treatment of UF6 material, to conversion into UO₂, production of UO₂ pellets, and sintering of the pellets. Quality control is maintained during all process stages. The design capacity of the plant is 2,000 tons of pellets per year. Fuel assemblies from UMZ are used at nuclear power plants in Russia, the Ukraine, and other countries. The U²³⁵ content is 1.6-4.4%. UMZ also produces rare earth metal products and super conducting materials.

2.6.  Research and Development

Kazakhstan has four research reactors at the National Nuclear Centre where the following research is carried out:

1. radiation material science; study of the interaction between construction materials and coolants; investigation of fission produced emission from fuel rods, its precipitation and filtration under different conditions;
2. safety of nuclear power plants; fuel assemblies and rod tests at transition and break-down modes of operation; simulation of reactor core fragment melting and interaction of melted material with coolant;
3. development and implementation of nuclear physics methods and technologies; production of isotopes for different applications, for example, thallium-201 chloride for early diagnostics of heart decease.

2.7.  International Co-operation and Initiatives

In 2005-2006, Kazakhstan has activities in many national and international projects:

Kazakhstan national projects under the program of technical cooperation with IAEA for 2005-2006.

European Regional projects of IAEA for 2005-2006 in which Kazakhstan is taking part

IAEA regional projects on West Asia for 2005-2006 in which Kazakhstan is taking part

Also, there are efforts under the Co-ordinated Plan of Technical Support of the Republic Kazakhstan to establish a national system for nuclear materials accountancy, control and physical protection as detailed by the International Atomic Energy Agency.

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Safety Authority and the Licensing Process

The Kazakhstan Atomic Energy Committee (KAEC) is the Nuclear Regulatory Body of the Republic of Kazakhstan. The following laws and regulations determine the procedure for licensing:

• Law on licensing;
• Law on use of nuclear energy;
• Regulations on licensing of the activity connected with atomic energy use.

The licensing stages for nuclear installations can be briefly represented as follows:

• License demand (submission of application documents);
• KAEC decision on the demand control;
• Analysis of substantiating materials of demand;
• Inspection at the nuclear installation;
• Conclusion on substantiating materials examination;
• Conclusion on nuclear installation inspection;
• General conclusion on obtaining license; License.

3.2.  Main National Laws and Regulations

The following laws are relevant for nuclear energy:

• Law on the use of nuclear energy;
• Law on radiation protection of the Kazakh population;
• Law on licensing;
• Regulations on licensing of activity connected with atomic energy use;
• Regulation on the Atomic Energy Committee of the Republic of Kazakhstan.

All regulating documents have been compiled into a “List of main technical documents of the Republic of Kazakhstan in the field of atomic energy use”. The programme of developing atomic legislation implies two basic laws:

• Law on radioactive waste management;
• Law on export-import control (new version).

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy

The current policy in the field of atomic energy emphasizes:

• maintenance of existing facilities in accordance with international safety standards;
• support of scientific, technical, design and construction connections with Russian Federation and other CIS countries and establishing contacts with international organizations;
• creation of state system of accountancy and control of nuclear materials in accordance with Non-Proliferation Treaty obligations and Agreement on Safeguards that is expected to be ratified by Presidential Decree in the near future;
• improvement of regulations for congruence with other CIS regulations;
• liquidation of results of nuclear explosions;
• creation of a radioactive waste storage and disposal system.

Appendix 1

INTERNATIONAL (MULTILATERAL AND BILATERAL) AGREEMENTS

BILATERAL AGREEMENTS

• The Agreement between the Russian Federation and the Republic of Kazakhstan on the Peaceful use of Atomic Energy.
• The Agreement between the Russian Federation and the Republic of Kazakhstan on Transportation of fission materials.
• Agreement of KAEA and GAEN of the Russian Federation on co-operation in the field of nuclear safety.
• Agreement of KAEA and NRC of the USA on technical information exchange and co-operation in the field of nuclear safety.
• The Agreement for Co-operation between the United States of America and the Republic of Kazakhstan concerning Peaceful uses of nuclear energy.
• The Agreement for co-operation between European Atomic Energy Community and the Republic of Kazakhstan in the field of nuclear safety.

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES