By Charles Kennedy – Jul 23, 2025, 3:00 PM CDT
Kazakhstan’s new energy strategy aims to triple its petroleum product exports by 2040.
The revised strategy, approved this week by the cabinet, emphasizes downstream development as a top priority.
Times of Cental Asia: Kazakhstan will invest up to $5 billion in its oil and gas chemical sector, focusing on polymers, fertilizers, and other high-value products.
Kazakhstan has unveiled an ambitious new energy strategy that will triple its petroleum product exports by 2040, with refined fuel volumes set to hit 39 million tons per year, up from 17 million now, with export share rising to 30% of total output. The sweeping 2025-2040 plan marks a sharp departure from previous government policy, which capped fuel exports at just 10% under a 2024 draft framework.
The revised strategy, approved this week by the cabinet, emphasizes downstream development as a top priority, particularly with respect to expanding refining capacity, launching a $5 billion petrochemical buildout, and targeting new export markets in China, India, and neighboring countries. The government also confirmed six ongoing projects in the oil and gas chemical sector totaling an additional $15 billion in investment, according to the Times of Central Asia.
The new strategy prioritizes boosting exports to growing demand centers in China, India, and neighboring Central Asian countries. The plan includes expanding existing refining infrastructure and constructing a new petrochemical complex, with the goal of raising refining depth to 94% and enabling full domestic coverage amid projected annual fuel demand growth of 1.5-2%, driven by urbanization and industrialization.
The Times of Central Asia notes that Kazakhstan will invest up to $5 billion in its oil and gas chemical sector, focusing on polymers, fertilizers, and other high-value products. These efforts complement the government’s broader downstream development vision, which includes six major projects already underway and a parallel investment pipeline totaling $15 billion.
The Energy Ministry emphasized that with 30 billion barrels of proven reserves, Kazakhstan intends to become a strategic refining center in Eurasia. Implementation of the plan will begin in 2025 with pilot refinery digitization initiatives, according to ICE. The government sees this as a key step toward insulating its economy from global commodity price volatility while attracting long-term foreign investment.
By Charles Kennedy for Oilprice.com
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