Azernews.Az

Kazakhstan will not build new oil refinery, Novosti-Kazakhstan reported with the reference to Kazakh Energy Ministry.

Meanwhile in order to meet the demand of the domestic market for gasoline and petroleum, the country's Shymkent refinery will be expanded.

"Rational solution [of gasoline shortage problem] is further gradual increase of Shymkent refinery's capacity (which was originally designed with ability to expand processing up to 12 million metric tons per year), in line with the increase in the needs of the internal market," the energy ministry said.

The expansion of the Shymkent refinery has a number of advantages compared to the construction of new refineries, including the location in the densely populated region and next to other Central Asian countries as the only potential export market, the ministry said.

The ministry noted that Shymkent refinery's capacity will be expanded from the current six million metric tons to nine million after 2024, and this measure will allow Kazakhstan to meet its needs for light oil products until 2035.

Moreover after the completion of oil refineries' modernization in 2016, Kazakhstan will not have shortage of Euro-4, Euro-5 standard light oil products until 2022.

The ministry said that the country s hould expect a small shortage of diesel and gasoline in 2021 and 2015, according to forecasts. The deficit will be covered by import from Russia, until 2024.

Three large refineries - Pavlodar refinery, Atyrau refinery and Shymkent refinery - operate in Kazakhstan and their total processing volume nears 13 million metric tons.

Around one third of the fuels and lubricants consumed in Kazakhstan is traditionally imported from Russia.