Kazakhstan plans to increase capacity of three oil refineries, PM says

Kazakhstan plans to increase the annual capacity of its three existing oil refineries from 17.5 million to 28.8 million tonnes, Prime Minister Olzhas Bektenov has announced.

He said the Shymkent Oil Refinery is planned to be expanded to 12 million tonnes, the Pavlodar refinery to 9 million tonnes and the Atyrau refinery to 6.1 million tonnes per year, Caliber.Az reports, citing Kazakh media.

According to Bektenov, increasing oil refining capacity is directly linked to fuel prices on the domestic market. He noted that given Kazakhstan’s current petrol and diesel prices, which are twice as low as those in neighbouring countries, investment in the sector is economically unviable.

“Therefore, we need to actively continue liberalising the market. This is a matter of economic security,” the prime minister stressed.

Work is underway on plans to build a fourth refinery. A comprehensive assessment of the project is expected by the end of the year, including decisions on its capacity, location, feedstock base and economic model.

By Bakhtiyar Abbasov