Kazakhstan and China discuss Shymkent Oil Refinery expansion and oil supplies

Published October 28, 2026 12:36

Nikolai Marchenko

Nikolai Marchenko

Senior Journalist n.marchenko@kursiv.media
Svetlana Voronova

Svetlana Voronova

Photo: Primeminister.kz

The expansion of the Shymkent Oil Refinery was one of the main topics of talks between Kazakhstan and China’s CNPC in Astana. The joint venture’s annual processing capacity is expected to double to 12 million tons.

The project was reviewed at the fifth meeting of the working group on Kazakhstan-China cooperation in the oil and gas sector, chaired by Kazakhstan’s First Deputy Prime Minister Nurlybek Nalibayev. Participants included Energy Minister Yerlan Akkenzhenov, CNPC President Zhou Xinhuai and representatives of oil and gas companies from both countries, the government’s press service said.

Alongside the refinery expansion, the parties discussed increasing oil supplies and pipeline capacity, expanding geological exploration, and cooperation in the gas sector, petrochemicals and new energy. They also reviewed the extension of existing subsoil use contracts and issues related to joint projects.

Shymkent Oil Refinery: What was discussed

Akkenzhenov also held a separate meeting with the president of CNPC. According to the Energy Ministry, during Kazakh President Kassym-Jomart Tokayev’s visit to China in fall 2025, the parties agreed to consider expanding the Shymkent Oil Refinery as a standalone initiative. At the latest talks, they discussed the project’s status and next steps.

The minister noted that CNPC has been one of Kazakhstan’s key strategic partners for more than 30 years. Participants also discussed developing gas and petrochemical projects, fulfilling contractual obligations, increasing the share of Kazakhstani goods and services and training personnel.

China’s participation in the project

The Shymkent Oil Refinery is a joint venture between KazMunayGas and CNPC. In June 2025, the companies and the Energy Ministry signed a framework agreement to double the refinery’s capacity. The expansion is expected to be completed by 2030.

The East China Engineering Design Institute is involved in preparing the feasibility study. The refinery will add a new processing line with a capacity of 6 million tons of oil per year.

To ensure a sufficient supply of crude oil to the refinery, KazMunayGas (KMG) and CNPC are also preparing to expand the Kenkiyak-Atyrau oil pipeline to a capacity of 15 million tons per year and the Kenkiyak-Kumkol oil pipeline to 20 million tons per year. The companies agreed to develop the project documentation at a meeting on Oct. 22.

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