04-01-01 Supplies of natural fuel (oil, gas condensate, natural gas and coal) made up 89.4 mm tons of equivalent fuel over the first ten months of 2000, exceeding the index of 1999 by 13.7 %. Oil accounts for 47 % (including gas condensate), coal for 40.7 % and natural gas for 12.3 % of natural fuel supplies. It can be mentioned that oil, gas condensate and coal are produced in Kazakhstan.
Imports of coal and oil reached 1.1 % and 2.6 % correspondingly in the total amount of resources. At the same time, 31.2 % of gas is imported. The growth of natural fuel supplies over the period was caused by a 1.2-fold increase in oil production (including gas condensate) and 1.3-fold increase in production of natural gas and coal.
The other tendency is the shrinking amount of hydrocarbons distributed on the domestic market, caused by rising sales on the external market. Oil sales on the domestic market sank from 22.8 % in January to October 1999 to 20.7 % in January to October 2000, and coal sales from 72.1 % to63.9 %. Gas distribution on the internal market fell from 57.1 % to 56.3 % against exports which increased from 42.9 % to 43.7 % over the same period of time.
Some 71.6 % of total oil exports over the ten months went to countries outside the CIS with the major destinations being Bermuda (34.9 %), BVI (27.9 %) and Italy (12.3 %). Russia exported 0.8 mm tons of oil to Kazakhstan. According to the Kazakhstan Statistic Agency, the contract price for Kazakhstan oil supplied to the islands reached $ 185.3 (Bermuda) and $ 167 (BVI), while oil from Russia was imported for $ 73.2 per ton. In October, the export prices to the above-mentioned islands made up $ 218.1 and $ 174 respectively falling behind the world prices ($ 226.4 per ton) by 3.7 % and 1.3 fold.

A mere 6.1 mm tons (which is 27 % of the 22.6 mm ton design capacity of the three Kazakhstani refineries) were supplied over the first ten months of 2000, which allows to suggest that the internal market is saturated. A 4.3 % reduction of fuel production isreported along with 5.7 % growth in production of diesel fuel and 2.5 % in oil fuel.
The domestic demand for oil products is partly satisfied by imports. For example, gasoline imports rose 5.3-fold over the first ten months this year against the same period 1999, reaching 389.9 thousand tons. Imports of gas oil grew 4-fold to 169 thousand tons. Oil fuel imports decreased by 27.9 % to 125.6 thousand tons.
In October 2000 the oil product reserves were replenished at the expense of increased imports: 1.6-fold for diesel fuel and 2-fold for motor fuel vs. the same index last year. However, it is important that imports account for a small share in the oil product market: 2.7 % for oil fuel, 16.6 % for gasoline and 15.5 % for diesel fuel. Russia was the major supplier of oil products (96 %) to Kazakhstan in October 2000.
In conclusion it shall be noted that negotiations between Kazakhstan and Uzbekistan over supply of Uzbek gas have not been successful for the Kazakhs, and Uzbek gas will be supplied to the Almaty area at $ 50 per thousand cm compared with $ 35 paid for the gas before (43 % increase).