Kazakhstan’s oil refining industry is experiencing growth, with an increase in production and potential for GDP contribution. Minister Serik Zhumangarin targets a 7 percent GDP growth for 2025, while Vice Minister Erlan Akkenzhenov reported increased refining output. The completion of key projects will enhance refining capacity, impacting the economy significantly.
Kazakhstan’s oil refining industry is showing promising growth and potential for increased GDP contribution, according to Minister of National Economy Serik Zhumangarin during a meeting of the Economic Growth Headquarters. The actual GDP growth reached 4.8 percent in 2024, with an ambitious target of 7 percent set for 2025, contingent upon successful investment project implementation in the real economy.
Vice Minister of Energy Erlan Akkenzhenov reported that oil refining in January reached 1.53 million tons, marking a 104 percent increase from the previous year and exceeding January 2025’s target by 0.6 percent. Additionally, after the expansion of the CaspiBitum LLP projected for late May 2025, Kazakhstan’s total refining capacity is expected to rise from 18 million tons to 18.5 million tons by 2026.
Serik Zhumangarin expressed optimism regarding the oil refining sector’s GDP contributions, stating, “In the absence of serious external factors, the oil refining industry has a good chance to increase its share of GDP contribution this year.” In addressing the Mangistau region’s growth, he noted the need for improvement in agriculture, fishing, and trade performance.
The meeting also highlighted challenges related to low budgetary investment project utilization in the region. Zhumangarin urged the review of urgent funding projects to enhance their positive impact on the real economy. Currently, oil refining constitutes less than 1 percent of Kazakhstan’s GDP, reported at 0.8 percent for 2023 and 0.6 percent for the first nine months of 2024.
Kazakhstan’s oil refining sector is poised for growth, with opportunities to enhance its GDP contribution. The government’s commitment to implementing investment projects is critical for achieving the ambitious GDP growth targets. Continued focus on the performance of various economic sectors, particularly in the Mangistau region, will be necessary to ensure sustainable economic development.
Original Source: en.trend.az
