Construction of the 4th oil refinery in Kazakhstan spells risks, experts believe

Almaty. June 15. Silkroadnews – Construction of the 4th oil refinery in Kazakhstan spells more risks rather than benefits, such opinion was expressed by the research projects director of “Petromarket” research group Ivan Khomutov, KazTAG reports.

“Based on the current prerequisites for the development of Kazakhstan’s economy, oil refining, neighboring countries’ markets, there are no large markets to sell the petroleum products of the 4th plant,” I. Khomutov said at the III International Conference “Oil Refining and Petrochemical Industry of Central Asia” in Astana on Wednesday.

“To start implementation of the 4th plant means to bear high risks. These are large investments, which can be not repaid,” he said.

According to the expert, there are five countries which may need the imported products in the near future: Kyrgyzstan, Uzbekistan, Afghanistan, Tajikistan and Mongolia. The problem is these markets are divided between several players, mainly Russia, but also Turkmenistan, Azerbaijan and partially Iran. For Kazakhstani businesses it will be hard to compete without the support from the state.

Earlier Kazakhstan was reported to have more than 1 million tonnes of excess of gasoline expected after the modernization of three operating refineries. The modernization of the Atyrau refinery shall be completed in the second quarter of 2017, other two refineries are expected to be modernized at the end of 2017. At present three domestic refineries provide 70% of gasoline for the country’s domestic market.