ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of July 21, 2025 No. 549

About approval of the Concept of development of oil processing industry of the Republic of Kazakhstan for 2025 - 2040

The government of the Republic of Kazakhstan DECIDES:

Approve the enclosed Concept of development of oil processing industry of the Republic of Kazakhstan for 2025 - 2040 (further - the Concept).

2. To the central state bodies and other organizations (under approval), responsible for implementation of the Concept to take necessary measures for its realization.

3. Annually, till May 1 to provide to Department of Energy of the Republic of Kazakhstan in the Government of the Republic of Kazakhstan information on the course of implementation of the Concept.

4. To impose control of execution of this resolution on the Department of Energy of the Republic of Kazakhstan.

5. This resolution becomes effective from the date of its signing.

Approved by the Order of the Government of the Republic of Kazakhstan of July 21, 2025 No. 549

The concept of development of oil processing industry of the Republic of Kazakhstan for 2025 - 2040

Section 1. Passport

Section 2. Analysis of the current situation

2.1. Need of development of the Concept

In Strategy Kazakhstan-2050: the new political policy of the taken place state" is noted that the oil and gas complex of Kazakhstan is the locomotive for all economy and promotes development of other industries and, respectively, one of priority tasks by 2050 is ensuring energy security of the country. Also stability and balance of production, consumption and inventories in the domestic market of oil products and, respectively, 100% - Nov ensuring domestic market and development of export in the conditions of the growing requirements of economy during 2025-2040 belong to energy and economic safety of the country.

The strategy of achievement of carbon neutrality of the Republic of Kazakhstan till 2060 provides low-carbon development due to decrease in emissions of greenhouse gases (further – emissions) when using the most energy efficient technologies and materials, research and development works for transition to carbon neutrality, creation of new workplaces.

Also in the National development plan for the Republic of Kazakhstan till 2029 risks of deficit of raw materials of oil refinery, low prices and, therefore, the accelerated rates of consumption of fuel and overflows of oil products to neighboring countries, need of expansion of capacity of storage of oil products and reform of pricing for the balanced development of industry are noted.

So far by International Energy Agency it is developed, including "Net Zero Emissions by 2050 Scenario" or the scenario "Zero Emissions of Greenhouse Gases by 2050" assuming active realization of the principles of ESG. At the same time in developing countries, first of all in the Asian, growth of the population and number of cars and, therefore, oil demand is observed and oil products will continue to grow till 2050.

So, to developing and having stable demand for oil products, and also geographically close located the countries treat Kazakhstan:

Central Asia – Uzbekistan (37 million people), Tajikistan (10 million people), Kyrgyzstan (7 million people) and Turkmenistan (6 million people);

The southern and Southwest Asia – Pakistan (237 million people), Iran (87 million people), Afghanistan (43 million people).

Total number of the population of the countries constitutes up to 430 million people.

The previous mid-term Comprehensive plan of development of oil refineries (further – oil refinery) for 2009 - 2015 provided reconstruction and upgrade of capacities of Atyrau, Pavlodar and Shymkent oil refinery from 14 to 17 million tons per year for the domestic market. This plan did not provide need of long-term development of oil processing industry of Kazakhstan taking into account new regional and world challenges, including:

expansion of oil processing capacities in connection with the growing requirements of economy;

transition to the increased between-repairs period and decrease in accident rate;

increase in depth of oil refining is higher than 89%;

development of export of oil products on the markets of Central, Southern and Southwest Asia;

increase in contribution to the ESG agenda, applied science and basic petrochemistry;

increase in contribution to gross domestic product (further – GDP) the countries.

So, in 2009 in case of decision making on development of the feasibility statement (further – the feasibility study) upgrades and reconstruction of Atyrau, Pavlodar and total Shymkent oil refinery capacity of 17 million tons/year the population of Kazakhstan constituted 16 million people. For today population of Kazakhstan makes 20 million people and continues to increase.

Thus, need of development of the separate and long-term document – Concepts of development of oil processing industry for 2025 - 2040 ripened (further – the Concept).

Development of the Concept is initiated by the Department of Energy of the Republic of Kazakhstan which is the central executive body of the Republic of Kazakhstan and enabling forming and the realization of state policy, coordination in management process including in the field of state regulation of production of oil products, according to the order of the Government of the Republic of Kazakhstan of September 19, 2014 No. 994.

Development of the document is executed by the Department of Energy of the Republic of Kazakhstan (further – the Ministry) together with the interested state bodies and the companies: The Ministry of Ecology and Natural Resources of the Republic of Kazakhstan, KAZENERGY association, Samruk-Kazyna joint-stock company (further – Fund), joint-stock company "The KazMunaiGas national company (further – KMG), Atyrau Oil Refinery limited liability partnership, Pavlodar Petroleum Chemical Plant limited liability partnership, Petrokazakhstan Oil of Prodakts limited liability partnership, limited liability partnership "CaspiBitum joint business (further – CaspiBitum) and "Institute of Fuel, Catalysis and Electrochemistry of D. V. Sokolsky" joint-stock company, being one of specialized research institutions in the field of oil processing and petrochemistry.

The concept contains the analysis of the current situation, the overview of the international experience and vision of development of industry, determines the main approaches, the principles and target indicators by sustainable development of oil processing industry of the Republic of Kazakhstan during 2025 - 2040 taking into account regional and world challenges in the main directions:

Providing economy with domestic oil products.

Export of domestic oil products.

ESG, development of applied science and basic petrochemistry.

Increase in contribution to GDP of the country.

Enhancement of state policy in industries, increase in personnel potential and compliance to world trends.

It is noted that implementation of the Concept is directed also to compliance of 4th of 17 sustainable development goals of the United Nations or No. No. 8, of 9, of 12, 13: economic growth and employment, industrialization and innovations, rational consumption patterns and productions, decrease in emissions from transport.

Ultimate goal of the Concept is providing competitiveness of the Kazakhstan oil refineries due to the steady and advancing development, investment attraction and concentration of resources in response to modern regional and global challenges.

The short characteristic of the Kazakhstan oil refineries is below included.

The oil processing industry of Kazakhstan is provided by large oil refineries, including:

Atyrau oil refinery (further – ANPZ)

Input of the plant in operation is made in 1945, profile of oil refinery – the fuel and petrochemical scheme with deep conversion of 5,5 of one million tons/year of Mangystau oil, Nelson index – 13,9, conversion depth – to 89%.

The Pavlodar NHZ (further – PNHZ)

Input of the plant in operation - 1978, profile of oil refinery – the fuel scheme with deep conversion of 5,5 of one million tons/year of the West Siberian oil with content of sulfur to 1,6 of % of masses., Nelson index – 10,5, oil refining depth - 89%. The petroleum chemical plant is sensitive to content of sulfur in the oil delivered within the Agreement between the governments of the Republic of Kazakhstan and the Russian Federation on cooperation in the field of transportation of the Russian oil.

The Shymkent oil refinery (further – ShNPZ)

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