Kazakhstan plans to expand its oil refining capacity to 40mn tons by 2040, according to the country’s Minister of Energy, Yerlan Akenzhenov. The move is part of a broader strategy to meet domestic fuel demand, boost petrochemical production, and enable exports to neighboring countries.
In 2024, Kazakhstan refined 17.9mn tons of oil, with production targets for 2025 remaining at a similar level. Domestic refineries are increasingly digitalized, using advanced automated process control systems from Honeywell and Yokogawa.
Under the Sector Development Concept, Kazakhstan’s oil refining growth roadmap includes:
- 2025–2032: Expanding existing refineries to raise refining volumes from 18 to 30mn tons per year.
- By 2040: Launching a new 10mn-ton refinery with a modern fuel and petrochemical configuration and a refining depth of 95%.
Production of finished petroleum products reached 14.52mn tons in 2024, with a target of 14.55mn tons for 2025. By 2040, output is expected to double to 29.2mn tons, with fuel quality improving from class K4 to K5+.
Digital systems are playing a key role in improving sector efficiency. The "Oil Transportation Management" system automates oil distribution among producers, refineries, and transport operators, reducing request formation from five days to one and approval of supply schedules from seven days to two.
The "Oil Track" system monitors petroleum turnover across 123 oil depots in real time, cutting request processing from three hours to ten minutes and reducing the “grey” fuel market by 20%. Artificial intelligence is being explored for demand forecasting and logistics optimization.
Kazakhstan’s petrochemical sector is also growing. Production by KPI, Neftekhim, Shymkent Chemical Company, and ANPZ reached 540,000 tons in 2024, up 1.5 times from 2023, with a target of 589,700 tons for 2025.
New projects include a polyethylene plant under construction and alkylate, butadiene, and urea facilities in design. The government is also preparing a draft Law on the Petrochemical Industry to ensure systematic development and transparent regulations.
Minister Akenzhenov highlighted digitalization at KPI, where SAP ERP integration automated contract management, cutting document preparation by 80% and processing times by 30%.
