Key facts
- Kazakhstan plans to increase its annual oil refining capacity from 18 million tons to 40 million tons by 2040.
- The strategy includes expanding existing refineries and building a new major refinery.
- The goal is to boost domestic fuel production, improve feedstock utilization, and reduce reliance on imports.
- A new refinery is slated for commissioning by 2033 to address domestic shortages and enable net fuel exports.
- Kazakhstan has recently resisted exporting fuels to Russia due to sanctions risks and high domestic demand.
Kazakhstan has announced ambitious plans to significantly increase its crude oil refining capacity by 2040, aiming to more than double it from the current 18 million tons per year to 40 million tons annually. This strategic move, outlined in the government's 2025-2040 plan, involves expanding existing refineries to reach 29 million tons of capacity and constructing a new major refinery projected to add another 10 million tons per year.
The Ministry of Energy stated that the increased refining capacity will not only boost domestic fuel production but also enhance the efficiency of feedstock utilization, broaden the range of petroleum products, decrease reliance on imports for certain products, and foster the development of the petrochemical industry.
Last year, Kazakhstan's fuel production reached 15.47 million tons, surpassing the government's target by 6.3%. For the current year, the country aims for a slight increase to 15.49 million tons. Earlier in the year, Vice Minister of Energy Kaiyrkhan Tutkyshbayev indicated that a new refinery is expected to be commissioned by 2033, with the objective of eliminating domestic fuel shortages and positioning Kazakhstan as a net fuel exporter.
In recent developments, Kazakhstan has reportedly resisted pressure to export fuels to Russia, which is facing a fuel crisis due to drone attacks on its refineries. This hesitation is attributed to the risk of secondary sanctions for aiding Russia's war effort, as well as high domestic demand for fuels this summer.