KazMunayGas, Sovico partner on SAF production

Kazakhstan’s national oil and gas company KazMunayGas (KMG) and Vietnam’s Sovico Group have announced a collaboration to explore the production of sustainable aviation fuel (SAF).

This partnership comes on the heels of Sovico Group’s acquisition of Qazaq Air.

The agreement follows a memorandum of understanding signed in August 2023 between KazMunayGas and Sovico during the Kazakh president’s visit to Vietnam. The focus on SAF production reflects Sovico’s plans to expand Qazaq Air’s international operations and their commitment to environmental sustainability.

Sovico Group, a major Vietnamese conglomerate with interests in energy, construction, and finance, acquired Qazaq Air in May 2024.

As part of the sale agreement, Sovico Group has agreed to reduce its carbon footprint from Qazaq Air operations. Kazakhastan’s sovereign wealth fund (Samruk-Kazyna) has set target to gradually increase SAF usage in airlines from 5% in 2040 to 20% in 2060.

Earlier in June this year, KazMunayGas Chairman Akshat Khasenov discussed potential for SAF production in Kazakhstan with US-based alcohol-to-jet (AtJ) technology developer LanzaJet and Japanese investment firm Mitsui.

KazMunayGas is already working on a preliminary feasibility study for the construction of the SAF production complex in Kazakhstan.