Kazakhstan’s Oil Refining Sector Exceeds Expectations and Targets
Kazakhstan’s oil refining sector is on the rise, with an expected contribution increase to GDP, as stated by Minister Serik Zhumangarin. The sector saw a 104% growth in January refining, and expanding capacities are anticipated by 2026. Addressing agricultural and trade performance is essential as the government seeks a targeted GDP growth of 7% by 2025.
Kazakhstan’s oil refining sector is showing promising growth, with expectations for a larger contribution to the national GDP. During a meeting of the Economic Growth Headquarters, Minister of National Economy Serik Zhumangarin discussed the industry’s potential alongside investment opportunities in the Mangistau region. He noted an actual GDP growth of 4.8 percent for 2024, aiming for a target of 7 percent for 2025, which is ambitious yet attainable with the right investments in the economy.
Vice Minister of Energy Erlan Akkenzhenov reported that oil refining in January reached 1.53 million tons, marking a 104 percent increase compared to the same month last year and exceeding initial plans for 2025 by 0.6 percent. Notably, the expansion of the CaspiBitum LLP project, expected to complete by late May 2025, will enhance its refining capacity from 1 million tons to 1.5 million tons, contributing to an overall capacity increase in Kazakhstan from 18 million to 18.5 million tons by 2026.
Zhumangarin expressed optimism about the oil refining industry’s potential to boost its GDP share in the absence of significant external challenges. He also highlighted targets for the Mangistau region, where agriculture and fishing scored only 87.5 percent of the targeted 101 percent, and trade achieved 102 percent compared to a goal of 105.4 percent. He emphasized the need to meet these benchmarks in the coming months due to the vital role trade plays in the overall economy.
The meeting also addressed the low utilization of budgetary funds for investment projects in the region, prompting an instruction to reassess projects that require urgent funding and evaluate their potential impact on the real economy. Currently, Kazakhstan’s share of oil refining in the GDP remains modest, accounting for less than 1 percent, with estimates of 0.8 percent for 2023 and 0.6 percent for the first three quarters of 2024.
In conclusion, Kazakhstan’s oil refining sector is poised for growth, with specific targets set for GDP contribution and refining capacity increase. The government aims to address current challenges in agriculture and trade sectors to ensure comprehensive economic advancement. Furthermore, the reassessment of investment projects will prioritize those that can effectively enhance the real economy, signaling a proactive approach to economic growth.
Original Source: en.trend.az
