Kazakhstan to boost capacity at three refineries through expansion projects
Prime Minister Olzhas Bektenov today chaired a meeting to review progress on President Kassym-Jomart Tokayev’s directives concerning the modernization of existing refineries and the construction of a fourth refinery, Qazinform News Agency reports citing the press service of the Kazakh Government.
Chairman of the Management Board of KazMunayGas Askhat Khassenov reported on the current status and timelines for expanding the country’s existing refineries.
The capacity of the Shymkent Refinery is planned to double from 6 million to 12 million tons of oil per year by 2030, while the Pavlodar Petrochemical Plant is expected to increase its capacity from 6 million to 9 million tons by 2031.
At the Atyrau Refinery, an efficiency improvement project is underway and is scheduled for completion in 2027. The project will increase the refinery’s capacity from 5.5 million to 6.1 million tons per year.
The modernization of the Shymkent Refinery will also include expanding the capacity of the Kenkiyak-Atyrau and Kenkiyak-Kumkol main oil pipelines, as well as the Tekesu station. In addition, a Shymkent-Almaty product pipeline with an annual capacity of up to 3.5 million tons is set for construction.
Through these expansion projects, the combined capacity at the three existing refineries is expected to raise from 17.5 million to 28.8 million tons annually.
During the meeting, Deputy Energy Minister Kaiyrkhan Tutkyshbayev reported on preparations for the construction of a fourth oil refinery.
According to the Energy Ministry, Kazakhstan’s long-term demand for oil refining capacity could reach around 40 million tons per year.
Bektenov instructed officials to complete a comprehensive assessment and make final decisions on the fourth refinery by the end of this year. The assessment will cover its optimal capacity, configuration, feedstock base, location and economic model.
The participants in the meeting were also given a number of instructions aimed at increasing the sector’s production capacity and meeting domestic demand for oil products in the medium and long term.
The relevant government agencies and organizations were instructed to closely monitor refinery expansion projects, prevent delays and ensure the timely commissioning of facilities.
The meeting also focused on further increasing the depth of oil processing amid rising domestic demand for petroleum products.
Expanding oil refining capacity is directly linked to the attractiveness of fuel prices on the domestic market. In the current situation, when gasoline and diesel prices in Kazakhstan are twice as low as in neighboring countries, investments in oil refining are economically unfeasible. Therefore, we need to actively continue liberalizing the market. This is a matter of economic security, said Bektenov.
Earlier, Qazinform reported Kuwait signaled interest in Kazakhstan’s oil and gas projects.
