Kazakhstan’s Evolving Energy Landscape: Embracing Renewables while Expanding Oil Production
Kazakhstan is making significant strides in the energy sector, focusing on both renewable energy and traditional oil and gas production. The country’s commitment to green energy is evident as it reached a milestone in 2024, with renewable sources contributing 6.4% to the nation’s total electricity generation.
Energy Minister Almasadam Satkaliyev announced the launch of eight new renewable energy projects in the previous year, with a combined capacity of 163 MW. This year, Kazakhstan plans to add nine new projects, totaling 455.5 MW, to its energy grid, further solidifying its transition to renewable energy.
On the oil and gas front, Kazakhstan aims to boost its oil production to 96.2 million tons in 2025. The expansion project at the Tengiz field, along with developments at other key fields like Karachaganak and the Caspian shelf, will drive this growth. The country plans to export 70.5 million tons of oil this year through various pipelines and export routes.
In the refining sector, Kazakhstan processed 17.9 million tons of oil in 2024 and intends to maintain this figure in 2025. The planned expansion of the Shymkent oil refinery will double its capacity to 12 million tons per year, meeting the growing domestic demand for refined products.
Gas production in Kazakhstan is also on the rise, with plans to increase from 59 billion cubic meters in 2024 to 62.8 billion cubic meters this year. New gas processing plants and pipeline projects will support this growth, along with the expansion of the gas distribution network to reach more of the population.
In the petrochemical sector, Kazakhstan produced 540,000 tons of petrochemical products in 2024, with a target to increase this to 550,000 tons this year. The Ministry of Energy is working on significant projects to develop the necessary infrastructure and create incentives for the industry’s growth, including the construction of a polyethylene production plant and combating counterfeit products through mandatory labeling of motor oils.
Overall, Kazakhstan’s focus on sustainability, local development, and advancements in the energy sector bode well for its future as a key player in both traditional and green energy production.
