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.
