Kazakhstan not to need to build new plant till 2035 if existing refinery expanded
Astana, Kazakhstan, Oct. 11
By Daniar Mukhtarov - Trend:
A gradual increase in the Shymkent oil refinery's processing capacity will help to entirely meet the Kazakh domestic market's growing needs until 2035, the Energy Ministry of Kazakhstan told Trend.
"Further gradual rise in the capacity of Shymkent oil refinery will help cover the growing needs of the country's domestic market," the ministry's press service said.
"Moreover, an increase in the capacity by only 3 million metric tons after the years 2022-2024 will allow supplying Kazakhstan with light oil products till 2035."
Kazakhstan is now upgrading all the existing oil refineries, and this process will end in 2016, the press service said.
As a result, in 2017-2022, Kazakhstan's needs in light oil products, corresponding to Euro 4 and Euro 5 quality standards, will be fully met.
At the same time, according to forecasts, the consumption of diesel fuel and gasoline will rise in Kazakhstan starting from 2021 and 2025 respectively.
"In such a case, boosting the refining capacity is the possible option to fully provide internal market with domestic oil products," the press service said. "The rational decision in these circumstances will be increasing the Shymkent refinery's capacity."
The Shymkent refinery's expansion gives several advantages as compared to construction of a new oil refinery, the press service said.
"Firstly, the Shymkent oil refinery is located in Kazakhstan's densely populated region; secondly, it is near to Central Asia as the only potential market for exporting oil products surplus; thirdly, a developed infrastructure for ensuring oil supplies," the ministry's press service said.
The press service also added that this proposal was supported by the country's head.