ASTANA – Kazakhstan is undertaking a major expansion of its oil refining, gas processing, and petrochemical industries, aiming to boost oil processing capacity from 18.4 to 40 million tons per year, eliminate domestic fuel shortages by 2033, and increase production of value-added petrochemical products for both domestic use and export, the Deputy Minister of Energy Kaiyrkhan Tutkyshbayev said at a Feb. 17 government meeting.
Oil refining
The Deputy Minister of Energy Kaiyrkhan Tutkyshbayev. Photo credit: gov.kz
Under the national refining development concept, plans are underway to increase oil processing capacity from 18.4 million to 27.7 million tons per year through refinery modernization and extended maintenance cycles. This will significantly boost production of gasoline, diesel and jet fuel.
In addition, preparations have begun for the construction of a new refinery with a capacity of 10 million tons per year between 2026 and 2033. Once completed, total refining capacity in Kazakhstan will reach 40 million tons annually.
These measures are expected to gradually eliminate domestic fuel shortages. By 2033, the country plans to fully cover domestic jet fuel demand and begin exporting diesel and gasoline. Refining depth will increase to 94-95%, and fuel quality will improve to Euro-5 standards.
Gas industry
Two gas processing plants are being built at the Kashagan field. Together, they will produce around 2.5 billion cubic meters of commercial gas annually, along with liquefied petroleum gas and other by-products.
Construction of the 1 billion cubic meter plant is progressing, with commissioning scheduled for late 2026. The larger 2.5 billion cubic meter project has completed its pre-FEED stage, and investment agreements are being finalized. By 2032, commercial gas production is expected to reach 32.3 billion cubic meters per year.
Petrochemicals
Kazakhstan is shifting toward deeper hydrocarbon processing to increase value-added output. In 2025, petrochemical production exceeded 600,000 tons, including polypropylene, lubricants, Methyl Tertiary-Butyl Ether (MTBE), paraxylene and benzene.
Several major projects are underway, including plants for polyethylene, butadiene, urea, and alkylate production. These initiatives aim to ensure full coverage of domestic demand and strengthen the sector’s export orientation.