Kazakhstan Oil and Gas Downstream Market Size (2024 - 2029)

Kazakhstan Oil and Gas Downstream Market Size Summary

The Kazakhstan oil and gas downstream market is poised for growth, driven by increasing demand for natural gas and investments in refinery expansions. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The country's rich natural resources, including significant crude oil discoveries in southern Kazakhstan, present opportunities for new refineries. However, challenges such as the need for advanced refining equipment to handle the high hydrogen sulfide content in natural gas may pose constraints. The expansion of existing refineries, such as the Shymkent refinery, and the development of new facilities, like the planned refinery in Jezkazgan, are expected to enhance the country's refining capacity, with the oil refinery segment anticipated to dominate the market.

Kazakhstan's position as a leading natural gas producer in Central Asia is bolstered by ongoing increases in production and consumption. The country's gas penetration rate has significantly improved, with a substantial portion of the population gaining access to natural gas. Investments in gas infrastructure, such as the construction of a new gas processing plant at the Kashagan oil field, are set to further boost the market. The downstream sector is characterized by the presence of major players like KazMunayGas and Lukoil, with strategic initiatives aimed at exploring lower carbon business opportunities. These developments, coupled with government investments in the Ulytau region, are expected to drive growth in the Kazakh oil and gas downstream market over the forecast period.