Kazakhstan’s oil refining industry is on track to boost its GDP contribution, with notable increases in production and upcoming capacity expansions. The government aims for a 7% GDP growth in 2025, contingent on timely investment project execution. Current issues include underperformance in agriculture and trade sectors, and a need for better fund utilization in budget investment projects, as oil refining remains below 1% of the GDP.
Kazakhstan’s oil refining sector is showing promising signs, with a potential increase in its GDP contribution noted by Minister of National Economy Serik Zhumangarin during a recent Economic Growth Headquarters meeting. The meeting highlighted the oil and gas industry’s growth potential and discussed investment and economic developments in the Mangistau region. Zhumangarin set an ambitious GDP growth target of 7 percent for 2025, up from an expected 4.8 percent in 2024, contingent on the successful execution of key investment projects.
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 previous year, surpassing the monthly target by 0.6 percent for 2025. Additionally, the completion of the CaspiBitum LLP expansion by May 2025 is projected to raise its refining capacity from 1 million tons to 1.5 million tons, contributing to a total refining capacity increase in Kazakhstan from 18 million to 18.5 million tons by 2026.
Zhumangarin expressed confidence in the oil refining sector’s ability to enhance its GDP share this year, contingent on stable external conditions. The meeting also focused on the Mangistau region’s growth targets, which include near-term goals for agriculture and fishing, and urged adherence to set performance indicators. Moreover, concerns about the low utilization of budget investment funds were addressed, with calls for urgent review of projects to bolster contributions to the economy. Currently, Kazakhstan’s oil refining constitutes less than 1 percent of the GDP, standing at 0.8 percent for 2023 and 0.6 percent for the first three quarters of 2024.
Kazakhstan’s oil refining sector is poised for growth, with efforts underway to enhance its contribution to the national GDP significantly. The government is targeting a 7 percent GDP growth for 2025, driven by successful investment projects and expansions in refining capacity. However, the low performance in agricultural and trade sectors requires immediate attention to achieve set targets, alongside addressing budget utilization for investment initiatives. The current GDP share from oil refining remains relatively low, indicating room for growth and development in the sector.
Original Source: en.trend.az
