Kazakhstan Ponders Over Construction of Oil Refinery by 2030, Capable of Processing 10 Million Metric Tons
Kazakhstan to Expand Oil Refining Capacities with New Refinery
Kazakhstan is set to significantly increase its oil refining capabilities with the construction of a new refinery, as part of a larger petrochemical complex. The project, which is expected to start its implementation phase in 2025, forms part of a $5 billion investment plan to develop the downstream oil and chemical sector.
The exact location of the new refinery is yet to be specified, but it will complement the existing refineries in Atyrau, Pavlodar, and Shymkent, all of which have recently undergone modernization. The government aims to more than double the country’s total refining capacity from the current 18 million tons per year to approximately 39 million tons per year by 2040.
The new refinery is intended to process at least 10 million tons of oil annually and is projected to meet the country's needs for fuels and lubricants from 2040 to 2050. Energy Minister Almasadam Satkaliyev discussed the new refinery in November 2022, and the construction timeline is set for 2032.
Design work for the new refinery is expected to begin by 2030, with the Aktau bitumen plant's capacity also set for an increase from one to 1.5 million tons per year, and bitumen production rising from 500,000 to 750,000 tons annually. The Pavlodar petrochemical plant's capacity is also set to increase from 5.5 to eight million tons.
The Atyrau oil refinery's capacity is planned to be increased from 5.5 to 6.7 million tons, while the Shymkent oil refinery's capacity is set to soar from six to 12 million tons per year. Together, these facilities currently handle up to 18 million tons of oil annually.
The oil refining industry's goal includes facilitating exports to the rapidly developing markets of Central, South, and Southwest Asia. The industry aims to ensure economic growth and supply the domestic market with high-quality fuels and lubricants, in line with the Oil Refining Industry Development Concept for 2024-2040.
This ambitious expansion of Kazakhstan's oil refining industry is outlined in the country's approved 2025-2040 oil refining development strategy, reflecting a major national upgrade and expansion of refining capabilities and downstream industries. The Kazakh Energy Ministry has announced the need to build a new oil refinery by 2030, and the construction of the new refinery is planned to start by 2032.
The Kazakhstan government's investment plan for oil and chemical sector development includes a $5 billion project to construct a new refinery, which is expected to process at least 10 million tons of oil annually. This new refinery, part of the larger petrochemical complex, aligns with the Oil Refining Industry Development Concept for 2024-2040, focusing on economic growth, high-quality fuel supply, and exports to Central, South, and Southwest Asian markets.
Expanding on the government's initiative, the construction of new oil refineries, such as the one set to start in 2032, will significantly contribute to Kazakhstan's finance, energy, and business sectors, aiming to more than double the country’s total refining capacity to approximately 39 million tons per year by 2040.
