Editor❜s Note
Editor❜s Note

Traditionally, the June issue of the journal is dedicated to oil refining and petrochemicals. Just a couple of years ago, we were summarizing the nearly decade-long and finally completed Comprehensive Modernization Program of the oil refining industry. Today, it turns out, we are on the brink of another equally ambitious initiative.
The Ministry of Energy of Kazakhstan has prepared and put forward for discussion the draft Concept for the Development of the Oil Refining Industry for 2024-2050. This concept is based on a study commissioned by the Ministry and conducted by the consulting firm IHS Markit. Based on the study's findings, consultants recommended expanding the capacities of the Shymkent, Pavlodar, and Atyrau refineries instead of the previously discussed construction of a fourth refinery. This will increase oil refining volumes annually from 17 mln to 27 mln tons.
Where will the raw materials come from, especially when companies currently supply oil to refineries only thanks to the "carrot and stick" approach by the Ministry of Energy, and production at mature fields of KazMunayGas is steadily declining? The concept proposes leveraging up to 3.5 mln tons of oil annually from Tengiz and Kashagan as new sources. The challenge remains to convince the shareholders of these projects to sell oil domestically at 35-70% below export prices.
Sincerely,
Oleg Chervinskiy
Publisher