Kazakhstan’s Oil Refining Sector Demonstrates Growth and Ambitious Targets

Kazakhstan’s oil refining industry is poised for growth, with Minister Zhumangarin projecting a GDP increase of 7 percent by 2025. Oil refining figures for January exceeded projections, with capacity expansion on the horizon. Despite a low current GDP contribution from this sector, strategic investments and planning aim to enhance performance in the coming years.

Kazakhstan’s oil refining sector is showcasing positive growth, with expectations of a significant increase in its contribution to the national GDP. Minister of National Economy, Serik Zhumangarin, stated this during a recent meeting of the Economic Growth Headquarters. He highlighted a projected GDP growth of 4.8 percent for 2024, setting an ambitious target of 7 percent for 2025, conditional upon the timely execution of investment projects in the real economy sector.

Vice Minister of Energy Erlan Akkenzhenov reported that oil refining in January reached 1.53 million tons, representing a 104 percent increase compared to the same month last year and surpassing the initial 2025 target by 0.6 percent. Following the completion of the CaspiBitum LLP expansion project by May 2025, Kazakhstan’s total refining capacity is expected to rise from 18 million tons to 18.5 million tons by 2026.

During the meeting, Zhumangarin raised concerns about the capacity management of large and mini oil refineries. He affirmed that, barring serious external disruptions, the oil refining industry has substantial potential to enhance its GDP contribution this year. Discussions also touched upon the Mangistau region’s growth targets of 7 percent; however, some sectors like agriculture and trade have shown underperformance in January.

The Deputy Prime Minister directed efforts towards improving fulfillment of set economic goals and to scrutinize budgetary investments in light of their efficacy for the real economy. Currently, the oil refining sector contributes less than 1 percent to Kazakhstan’s GDP, with quoted figures of 0.8 percent for 2023 and 0.6 percent for the first nine months of 2024.

Kazakhstan’s oil refining industry is on an upward trajectory, with strategic targets set to increase GDP contributions significantly. Under the leadership of Minister Serik Zhumangarin, key investments and expansions in refining capacities are anticipated to bolster this sector. Although challenges remain, especially in regional economic performance, the government is prioritizing effective planning and immediate action to address these issues, aiming for sustainable economic growth.

Original Source: en.trend.az