Kazakh Government Greenlights Major Oil, Gas, and Petrochemical Development Plan
Kazakhstan Prime Minister Alikhan Smailov has signed off on a comprehensive plan for developing major oil and gas and petrochemical projects for the next five years. The plan, which covers the period from 2023 to 2027, aims to meet the needs of the domestic market and includes 20 projects in the oil and gas industry, oil and gas processing, and petrochemistry, with an expected investment volume of $37.3 billion.
The plan also involves large-scale works at Kazakhstan’s three major oil and gas fields – Tengiz, Karachaganak, and Kashagan. By 2027, the government plans to increase oil production to 105.5 million tons and gas production to 82.1 billion tons.
In addition, the government aims to implement three projects to provide the internal market with petroleum products. The main project involves increasing the capacities of the Shymkent refinery from six to 12 million tons by 2029, resulting in the country producing 18 million tons of petroleum products per year. To ensure oil supplies to the Shymkent plant, the government will also expand the capacities of the Kenkiyak-Atyrau and Kenkiyak-Kumkol oil pipelines.
Furthermore, Kazakhstan is considering constructing the first integrated gas chemical complex to produce polyethylene with a capacity of 1.25 million tons. The country also plans to develop an infrastructure project for a gas separation complex with a processing capacity of 9.1 billion, in a bid to boost the production of petrochemical products, stimulate investment flows, and reveal the potential of the Tengiz field.
The plan also includes seven exploration and field development projects with a total investment of nearly $10 billion, including the development and preparation for production at the Kalamkas-Sea and Khazar fields, the development of the Urikhtau gas condensate field, and the geological prospecting on Karaton-Podsolevoy field.
The government’s approval of this comprehensive plan signals its commitment to the growth and development of the oil and gas industry and petrochemical sector in Kazakhstan. These projects are expected to contribute significantly to the country’s economy and its energy security in the years to come.
