Kazakhstan approves 2025-2040 oil processing strategy
Kazakh Government has approved a long-term Concept of Development of Oil Processing Sector for 2025-2040 aimed at increasing the sector’s competitiveness amid the global energy transition, Kazinform News Agency reports.
The document elaborated by the Ministry of Energy provides for investments in infrastructure modernization, expansion of exports and integration of sustainable practices, which will enable the country to solidify its positions at the markets of Central and South Asia.
The strategy is based on recent achievements: after the modernization of the key oil refineries in Atyrau, Pavlodar and Shymkent, the country's annual oil processing capacity reached 17 million tons. The depth of processing increased to 89%, while motor-fuel production meets Euro-4 and higher standards. These improvements allowed to satisfy domestic demand by 90-95% and create a basis for the export of high-value added products.
The document reflects the need to adapt to global challenges including growth in demand in petroleum products in Asia - projected annually at 2-3% by 2030, according to the International Energy Agency – and decarbonization pressure. Kazakhstan plans to integrate ESG principles into the sector and shift to the renewable energy sources in production.
Key priorities of the strategy include:
- full provision of the domestic market with high-quality petroleum products with a projected consumption growth by 1.5-2% per annum due to urbanization and industrial development;
- intensifying exports to the markets of China, India and Central Asian states, in order to increase the share of exports in the overall production volume to 30% by 2040;
- development of petrochemical industry through the establishment of new chains including production of polymers and fertilizers, with the attraction of up to $5 billion of investments;
- increasing contributions to GDP through the deepening of processing and creation of new jobs;
- improvement of regulatory framework and personnel potential, including partnerships with international companies for the exchange of technologies;
Relevant state agencies, Samruk-Kazyna Fund, KazMunayGas National Company, KAZENERGY Association and sectoral experts were involved in the elaboration of the concept.
The document complies with the four UN Sustainable Development Goals including SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure), SDG 12 (Responsible consumption and production) and SDG 13 (Climate action).
The strategy may help attract foreign investments from partners, given Kazakhstan’s oil reserves of 30 billion barrels. Amid the global transition to green energy, this positions the country as a regional leader in transition to high-technological processing.
The implementation of the document will begin in 2025 with the pilot projects aimed at digitalization of oil refineries.
