Shift in Energy Sector of Kazakhstan: Increase in Renewable Energy, Expansion of Oil Production
Kazakhstan Pursues Balanced Energy Strategy, Focusing on Renewables, Oil, and Gas Production
ASTANA — Kazakhstan is forging ahead with its commitments to green energy while boosting its oil and gas production capabilities. The Central Asian nation has made significant strides in renewable energy, energy infrastructure, and petrochemical production, with a focus on sustainability and local development.
In 2024, renewable energy sources contributed 6.4% to Kazakhstan's total electricity generation, totaling 7.58 billion kilowatt-hours (kWh). Energy Minister Almasadam Satkaliyev reported the launch of eight new renewable energy projects with a combined capacity of 163 megawatts (MW) during an expanded meeting on Feb. 26, 2024. This year, the country plans to further facilitate its transition to renewable energy, with nine new projects scheduled for completion, adding an additional 455.5 MW to Kazakhstan's energy grid.
Looking ahead to 2025, Kazakhstan intends to increase oil production to 96.2 million tons. The expansion project at the Tengiz oil field is expected to launch in the first half of 2025, driving the growth in production. Other key projects are underway at the Karachaganak field and the Caspian shelf, including the Kalamkas-sea and Khazar fields.
Kazakhstan exported 68.6 million tons of oil in 2024 and aims to export 70.5 million tons this year. The country's primary export routes include the Caspian Pipeline Consortium (CPC) pipeline, the Atyrau-Samara pipeline, the Atasu-Alashankou pipeline, and the port of Aktau.
Kazakhstan is also furthering its oil refining efforts. The country processed 17.9 million tons of oil in 2024 and produced 14.5 million tons of oil products. A significant development in the refining sector is the planned expansion of the Shymkent oil refinery, which aims to double its capacity from 6 million tons to 12 million tons per year. The Ministry of Energy is collaborating with KazMunayGas and CNPC to finalize a framework agreement for this expansion.
Kazakhstan's gas production reached 59 billion cubic meters in 2024 and plans to rise to 62.8 billion cubic meters this year. The country is constructing new gas processing plants at Kashagan and Zhanaozen, and a new field, Barkhannaya, is scheduled for operation in the Zhambyl Region. Kazakhstan's gasification program is progressing, with 61.8% of the population gaining access to gas in 2024. Expansion of the gas distribution network is planned for this year, and several large gas pipeline projects will be completed, including new sections in the Aktobe, Almaty, and Mangystau Regions.
In the petrochemical sector, Kazakhstan produced 540,000 tons of petrochemical products in 2024 and aims to increase this to 550,000 tons in 2025. The Ministry of Energy has developed a Roadmap for the Development of the Petrochemical Industry for 2024-2030, which includes significant projects to establish the necessary infrastructure and create incentives for industry growth.
Kazakhstan is striking a balance between traditional hydrocarbon production and a growing emphasis on renewable energy and petrochemicals. This strategy supports resource-driven economic growth while prioritizing sustainability.
The renewable energy industry in Kazakhstan received a boost with the launch of eight new projects, adding 163 MW to its energy grid, signifying a intentional transition towards renewable energy sources. However, the country also plans to increase oil production to 96.2 million tons in 2025, demonstrating a balanced approach in energy finance, focusing on both oil and gas production and renewables.
