Kazakhstan is set to enhance its oil refining capabilities with plans to commission a new refinery by 2033. This initiative aims to address domestic fuel shortages and establish the country as a net fuel exporter, according to Vice Minister of Energy, Kaiyrkhan Tutkyshbayev. The new facility, the country’s fourth, will have a processing capacity of 10 million tons of crude oil per year.
Planning and feasibility studies for the refinery have commenced, with the central region of Ulytau being considered as a potential site. Earlier this month, Minister Tutkyshbayev indicated that this development is crucial for Kazakhstan’s energy strategy.
Kazakhstan’s Ambassador to Kuwait, Yerzhan Yelekeyev, recently discussed investment opportunities in the oil refining sector during a meeting with Kuwait’s Oil Minister Tariq Al-Roumi. This dialogue underscores the potential for international collaboration, particularly in the construction of the new refinery.
The country is not only focusing on a new facility but also on expanding existing refining capacity. By 2040, Kazakhstan aims to double its crude processing capacity from the current 18 million tons per year to a projected 40 million tons annually. Energy Minister Yerlan Akenzhenov stated that the expansion plan includes increasing refining volumes between 2025 and 2032 to reach 30 million tons per year.
The ambitious expansion comes with significant financial implications. Deputy Director of the Energy Ministry’s Oil Transportation and Refining Department, Talgat Makuov, highlighted that achieving the goal of more than doubling refining capacity will require investments ranging from $15 billion to $19 billion.
Kazakhstan’s efforts reflect its commitment to strengthening its role within the global oil market, particularly as part of the OPEC+ framework. The planned projects are part of a broader strategy to boost petroleum product output to 29.2 million tons by 2040, significantly increasing from the 14.55 million tons expected for the current year.
As these developments unfold, Kazakhstan positions itself for a more prominent role in the energy sector, leveraging both domestic and international partnerships to enhance its refining capabilities and meet growing fuel demands.
