Kazakhstan May Build New Oil Refinery on Caspian Coast

Kazakh Prime Minister Olzhas Bektенov has said that Kazakhstan’s fourth large oil refinery, with a projected capacity of 10 million tons per year, may be built in the Mangystau region.

Bektенov made these remarks in response to a parliamentary inquiry, The Caspian Post reports via Kazakh media.

According to the government’s long-term energy development plan, preliminary feasibility studies (pre-FEED) are scheduled for 2028-2030, followed by the design and documentation phase (2030-2032) and construction between 2032 and 2040. The project will add new high-capacity oil processing facilities, including the production of aviation fuels TS-1 and Jet A-1.

Bektенov noted that at least four potential sites are under consideration for the refinery. However, if built in Mangystau with a reduced capacity of 5 million tons per year, the cost of producing aviation fuel would rise, making the investment less profitable.

A smaller-scale mini-refinery project in the region is also being reviewed as part of Kazakhstan’s strategy to integrate oil refining and petrochemical production. The Energy Ministry is keeping the new refinery project under constant supervision, the prime minister emphasized.

Senator Suindik Aldashev, who raised the issue, highlighted that Kazakhstan currently produces 650,000-700,000 tons of aviation fuel annually, while consumption reaches 1 million tons, leaving a 30-35 per cent shortfall covered by imports from Russia.

With a new international air hub planned in Mangystau, aviation fuel demand could grow from 35,000 to 120,000-130,000 tons per year, alongside higher gasoline and diesel needs. Aldashev argued that using local crude oil - of which Mangystau produces about 18 million tons annually - would be more efficient than exporting it and re-importing refined products at higher prices.

He proposed that the government consider constructing a 5 million-ton refinery in Mangystau, ensuring fuel self-sufficiency for the region and supporting its growing transport and aviation sectors.