Kazakhstan is set to embark on the construction of a new large refinery and significantly enhance its existing refining capacity, aiming to more than double its crude processing capability by 2040, according to Energy Minister Yerlan Akenzhenov on Tuesday.

Source: OilPrice

• Last year, the OPEC+ oil producer's refining processing rate stood at 18 million tons per year.
• The planned expansion of current capacity is expected to increase oil refining volumes between 2025 and 2032, raising the annual rate from 18 million tons to 30 million tons.
• By 2040, Kazakhstan intends to introduce a new large-scale refinery with a capacity of 10 million tons per year.

These developments will result in a remarkable increase in oil refining capacity, projected to reach 40 million tons annually by 2040, up from the current 18 million tons.

Additionally, this capacity expansion aims to double the output of petroleum products, targeting a total of 29.2 million tons by 2040, compared to the 14.55 million tons anticipated for this year.

Earlier this year, Talgat Makuov, the deputy director of the energy ministry’s oil transportation and refining department, mentioned that achieving Kazakhstan’s goal of more than doubling its refining capacity would necessitate investments ranging from $15 billion to $19 billion.

Meanwhile, Kazakhstan has increased its crude oil production this year, consistently exceeding its quota under the OPEC+ agreement, while still reiterating its commitment to the deal. As a non-OPEC producer, Kazakhstan has been overproducing above its quota for years without adequately compensating for the excess. This year, production has risen due to expansion projects involving international companies like Chevron.