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Kazakhstan plans to increase the capacity of refineries.

Plans to increase the capacity of oil refineries in Kazakhstan were announced by the press service of the Ministry of Energy, the Business Information Center reports Kapital.kz .

The ministry noted that the draft Concept for the development of the oil refining industry notes that the stability and balance of production, consumption and reserves in the domestic market of petroleum products and, accordingly, 100% provision of the domestic market and export development in the face of growing economic needs in the period 2024-2050 are part of the country's energy and economic security.

The specialized company IHS Markit investigated the ways of developing the oil products market in Kazakhstan and Central Asia until 2035 and recommended the expansion of Shymkent, Pavlodar and Atyrau refineries instead of building a new refinery.

"Existing refineries have advantages such as qualified and experienced personnel with experience in modernization and commissioning of new facilities, developed infrastructure, including oil pipelines, railways and highways for the supply of new equipment and materials in case of expansion and shipment of a larger volume of petroleum products, supply overpasses and energy sources," the Ministry of Energy stressed.

Currently, work has begun to increase refining capacity from 18 to 27 million tons per year, including through projects to increase capacity and, consequently, the depth of oil refining:

Shymkent Refinery - from 6 to 12 million tons/year of oil;
Pavlodar Refinery - from 5.5 to 8 million tons/year of oil in two stages;
CaspiBitum - from 1 to 1.5 million tons/year of oil;
Atyrau Refinery - by 0.7 - 1 million tons/year of secondary oil refining capacity.

The Shymkent Refinery expansion project is included in the list of at least 15 major projects for the creation of high-grade clusters in accordance with the Message of the Head of state dated September 1, 2023.

The ministry also reported that a draft intergovernmental agreement is being prepared to attract potential investors and strategic partners.

It is expected that the implementation of high-tech projects will lead to:

to increase the refinery's oil refining depth from 84-89 % to 90-97 % and basic petrochemicals for further processing;
The ratio of oil production and refining in Kazakhstan is improving from 5 to 3.9 as new refining capacities are introduced, using the example of technologically advanced Saudi Arabia and Canada, and this should not be a limiting value.

For reference:

- today, oil production is 90 million tons, oil refining is 18 million tons and, accordingly, the ratio is 90/18 = 5;

- by 2030, it is planned to produce oil – 104 and refining – 27 and, accordingly, the ratio 104/27 = 3.9.

Source: kapital.kz
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