Kazakhstan has three major oil refineries supplying the northern region, at Pavlodar, the western region, at Atyrau, and the southern region, at Shymkent, with an estimated total refining capacity of 21.0 million tonnes per year (approximately 427 thousand bopd).
In 2008, the three refineries together processed a combined average of approximately 13,5 million tonnes per year of crude oil. The refinery at Pavlodar is supplied mainly by crude oil from western Siberia; the Atyrau Refinery runs solely on domestic crude from the western region of Kazakhstan; and the Shymkent refinery currently uses oil from the southern region of Kazakhstan. The Atyrau Refinery is undergoing modernisation to provide some additional capacity and to allow the refinery to meet current European fuel standards.
Kazakhstan is a net exporter of gas. Most of Kazakhstan’s gas reserves are located in the west of the country near the Caspian Sea, with roughly 25% of proved reserves located in the Karachaganak field.
Crude Oil Transportation
Kazakhstan’s geographic location means that the pipeline infrastructure through neighbouring countries has played an important role in the exploitation of Kazakhstan’s hydrocarbon resources, allowing it reach international markets
The CPC pipeline, which has been operational since 2001, represents a major export route. It extends 1,510 kilometres, originating in the Tengiz field, running through Russia and terminating at the CPC marine terminal on the Black Sea near the Russian port of Novorossiysk.
The UAS pipeline transports oil from fields in the Atyrau and Mangistau regions to Russia. The pipeline system runs for approximately 1,232 kilometres, from Uzen in southwest Kazakhstan to the Caspian port of Atyrau, before crossing into Russia and linking with Russia’s Transneft system at Samara. In June 2002, Kazakhstan signed a 15-year oil transit agreement with Russia. Under this agreement, Kazakhstan will export at least 17.4 million tonnes per year (350,000 bopd) of crude oil using the Russian pipeline system.
The 1,767 kilometre Baku-Tbilisi-Ceyhan pipeline delivers crude oil from Baku in Azerbaijan to a new marine terminal in the Turkish port of Ceyhan on the Mediterranean and is the first direct pipeline link between the Caspian Sea and the Mediterranean Sea. The Baku-Tbilisi-Ceyhan pipeline project is designed to transport up to 50 million tonnes (1.0 million bopd) by 2010. In May 2005, construction of the pipeline was completed and the pipeline began operating in July 2006. The Baku-Tbilisi-Ceyhan pipeline is expected to be largely dedicated to production from the Azeri-Chirag-Gunashli fields in the Azerbaijan sector of the Caspian Sea but to the extent there is available capacity, the Baku-Tbilisi-Ceyhan pipeline may be used to transport Kazakhstan crude oil shipped across the Caspian Sea to Baku by tanker.
In December 2005, China and Kazakhstan put into operation the 614 mile Atasu-Alashankou pipeline, forming part of the Atyrau-Dushantsty pipeline. The initial capacity of the Atyrau-Alashankou pipeline is 10 million tonnes (200,000 bopd) per year, with a projected increase up to 20 million tonnes per year (400,000 bopd).