Technip Energies is set to conduct a technical and economic feasibility study for Kazakhstan’s fourth oil refinery, with an annual capacity of 10 million tons of oil, according to the Energy_Monitor Telegram channel.
“Samruk-Kazyna is set to sign an agreement with engineering company Technip Energies to carry out the technical and economic feasibility study for constructing the fourth oil refinery in the country,” Energy_Monitor reported.
According to preliminary estimates, the new refinery will be capable of processing 10 million tons of oil annually. The major oil fields Kashagan and Tengiz will serve as the source of raw materials. Additionally, blends from the existing oil pipeline network are planned for loading as feedstock.
Samruk-Kazyna clarified that preparation of the new refinery project will last through the end of 2026. Following the completion of the technical and economic feasibility study, a final decision on investment allocation will be made. Kazakhstan’s three major existing refineries in Atyrau, Pavlodar and Shymkent are owned by KazMunayGas, a Samruk-Kazyna subsidiary.
Earlier, the construction costs for the fourth oil refinery with an annual capacity of 10 million tons were estimated at $15 billion, including infrastructure. This is comparable to the cost of a 2.4-gigawatt nuclear power plant being built by Russia’s Rosatom.
Several proposals have been discussed regarding the refinery’s location. One option would be to place the facility in the Ulytau region, near the Kazakhstan-China oil pipeline. However, in that case, the existing Atyrau-Kenkiyak-Kumkol pipeline would need to be expanded from its current capacity of 8 million tons per year to 25 million tons annually, accounting for planned capacity upgrades at the Shymkent and Pavlodar refineries.
Another option discussed was the Aktau or the Mangystau region. Additionally, some experts proposed placing the fourth major refinery in Atyrau, as the region has the largest oil production volumes, including offshore Caspian Sea production.
