Kazakhstan unveiled plans to build a new $10-billion oil refinery with a capacity of ten million metric tons per year (MMtpy) by 2033. The project aims to boost domestic fuel production, eliminate recurring shortages, and transform the country into a net exporter of refined petroleum products. By adding significant downstream capacity, Kazakhstan intends to strengthen energy security while positioning itself as a competitive supplier in regional and global fuel markets.
Clear Roadmap from Feasibility to Commissioning
According to vice minister of energy Kaiyrkhan Tutkyshbayev, the refinery will move through structured development phases between 2026 and 2033. These include feasibility studies, front-end engineering and design, construction, and final commissioning. Once operational, the new facility will raise Kazakhstan’s total refining capacity to 40 million tons annually. As a result, the country will not only meet domestic demand more reliably but also expand its export potential.
Strategic Planning to Ensure Long-Term Competitiveness
The energy ministry has already begun preparatory work. Officials are evaluating crude supply sources, assessing product demand forecasts, defining output configurations, and identifying potential technology licensors and site locations. By conducting detailed market and technical studies at the outset, the government aims to ensure the refinery remains commercially viable and technologically competitive for decades. These early decisions will also determine how effectively the plant integrates with regional logistics and export infrastructure.
Addressing Fuel Shortages Through Integrated Expansion
The new refinery forms part of a broader strategy to resolve Kazakhstan’s persistent fuel shortages. Between 2028 and 2030, the country will modernize its three existing refineries. These upgrades are expected to reduce the aviation fuel deficit from 5,00,000 tons per year (tpy) to 3,00,000 tpy while completely eliminating diesel shortages. Subsequently, once the new refinery begins operations in 2033, Kazakhstan expects to fully eliminate jet fuel deficits. In addition, surplus diesel and gasoline volumes will become available for export to neighboring markets, further enhancing trade revenues.
Higher Refining Depth
Alongside capacity expansion, Kazakhstan is focusing on efficiency and environmental performance. Refining depth at existing plants will increase from 89% to 94%, improving product yield and reducing waste. Notably, the new refinery will target a 95% refining depth, reflecting advanced processing technologies and optimized output configuration. At the same time, the country plans to upgrade fuel quality to the K5 environmental class. This move will align Kazakhstan’s fuel standards with modern international environmental requirements, reduce emissions, and support cleaner transportation fuels.
Strengthening Energy Security and Export Ambitions
Overall, the $10 billion refinery project represents a decisive step in Kazakhstan’s downstream expansion strategy. As reported by hydrocarbonprocessing.com, by combining capacity growth, technological upgrades, and improved fuel standards, the country is positioning itself to eliminate domestic shortages, enhance energy security, and emerge as a reliable exporter of refined petroleum products by 2033.
