Kazakhstan looking to build $10.5B refinery

December 13. Universal Newswires

Kazakhstan looking to build $10.5B refineryKazakhstan is looking to expand its refining capacity and build a new facility, the Interfax news agency reported Thursday.

The refinery would be built in northern Kazakhstan, near the border with Russia, in Bulaeva. Construction is expected to begin next year, the Interfax news agency reported.

Early estimates anticipate the cost of the refinery to amount to $10.5 billion, a TOO Kazenergoregion official told the news agency.

The plant is expected to process 12 million tons of oil and 6.6 million tons of crude on an annual basis.

Kazakhstan is a major oil and gas producer, but only has three refineries in the vast state, all of which are undergoing extensive modernization projects.

“Reconstruction and modernization of Kazakhstna’s oil refineries is the most important priority in development of the sector and our economy,” the chief of the Kazakh state energy firm KazMunaiGas (KMG) Lyazzat Kiinov said in October.

“The investment into implementation of these projects is expected to exceed $6 billion. The projects are to be implemented in 2013-2015.”

Its refineries are located in northern city Pavlodar, southern city Shymkent, and western oil town Atyrau.