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Kazakhstan stands as a significant player in the global oil and gas market, offering a range of high-quality commodities. For buyers seeking reliable sources of aviation fuels and diesel products, Kazakhstan presents attractive options with competitive pricing and flexible contract terms. This guide walks you through the essentials of purchasing oil and gas commodities from Kazakhstan, covering product types, pricing, payment methods, inspection standards, and contract details.

Overview of Kazakhstan’s Oil and Gas Commodities

Kazakhstan is rich in hydrocarbon resources, producing various petroleum products that meet international standards. The country exports key commodities such as aviation kerosene, jet fuel, and diesel fuel, primarily from major ports like Rotterdam, Houston, and Jurong under FOB (Free On Board) terms. These commodities are suitable for diverse industrial and transportation needs.

Available Products and Contract Details

Aviation Kerosene Colonial Grade 54 (JP54)

Minimum Quantity: 1,000,000 to 2,000,000 barrels for the first month
Maximum Quantity: Up to 5,000,000 barrels per month
Contract Duration: 12 months with possible extensions and rollovers
Origin: Kazakhstan
Price FOB: $76.00 gross / $72.00 net per barrel
Commission: $4.00 per barrel ($2 seller side / $2 buyer side)

JP54 kerosene is widely used in aviation and industrial applications. The contract terms allow flexibility in volume and duration, making it suitable for large-scale buyers.

Aviation Jet Fuel A-1 (JET A1)

Minimum Quantity: 1,000,000 to 2,000,000 barrels for the first month
Maximum Quantity: Up to 5,000,000 barrels per month
Contract Duration: 12 months with possible extensions and rollovers
Origin: Kazakhstan
Price FOB: $76.00 gross / $72.00 net per barrel
Commission: $4.00 per barrel ($2 seller side / $2 buyer side)

Jet A-1 fuel is a standard aviation fuel used globally. Kazakhstan’s supply meets international quality standards, ensuring compatibility with commercial aircraft.

Diesel Virgin D6 Fuel Oil (D6)

Minimum Quantity: 200,000,000 gallons for the first month
Maximum Quantity: 300,000,000 gallons per month
Contract Duration: 12 months with possible rollovers and extensions
Origin: Kazakhstan
Price FOB: $0.82 gross / $0.78 net per gallon
Commission: $0.04 per gallon ($0.02 seller side / $0.02 buyer side)

D6 fuel oil is commonly used in heavy machinery and power generation. The large volume contracts suit industrial buyers with substantial fuel needs.

Diesel Fuel EN590 (LOPPM)

Minimum Quantity: 100,000 metric tons
Maximum Quantity: 200,000 metric tons per month
Price FOB: $420 gross / $410 net per metric ton
Commission: $10 per metric ton ($5 seller side / $5 buyer side)

EN590 diesel meets European standards for low sulfur content, making it environmentally compliant and suitable for modern diesel engines.

Payment Terms and Inspection

Payment for these commodities is typically made via MT103 or TT wire transfer. These methods provide secure and traceable transactions, essential for international trade. Buyers should ensure their banks support these payment types to avoid delays.

Inspection of goods is conducted by SGS, CIQ, or equivalent agencies. These inspections verify product quality and quantity before shipment, protecting both buyer and seller interests. Buyers are encouraged to request inspection certificates as part of the contract.

FOB Terms and Delivery Ports

The commodities are offered on FOB terms, meaning the buyer assumes responsibility once the goods are loaded onto the vessel at the port. The main delivery ports include:

Rotterdam (Netherlands)
Houston (USA)
Jurong (Singapore)

These ports are strategically located to facilitate global distribution, reducing transit times and costs.

Pricing Considerations and Market Fluctuations

Prices listed are subject to change due to market conditions. Buyers should confirm pricing at the time of order to ensure accuracy. Negotiations are possible, especially for long-term contracts or large volumes.

The commission fees are shared equally between the seller and buyer sides, promoting transparency in the transaction process.

Practical Tips for Buyers

Verify Supplier Credentials: Ensure the supplier is reputable and able to provide necessary documentation.
Confirm Inspection Reports: Always request third-party inspection certificates before shipment.
Understand Contract Terms: Review contract duration, volume commitments, and extension options carefully.
Plan Payment Logistics: Coordinate with your bank for MT103 or TT wire transfer capabilities.
Monitor Market Prices: Stay updated on global oil and gas prices to negotiate effectively.