Export of Petroleum Products From Kazakhstan: Prospects for 2023

Export of Petroleum Products From Kazakhstan: Prospects for 2023
Atyrau Oil Refinery, Kazakhstan (Photo: centralasia.news)

Kazakhstan may increase railroad fuel oil exports this year. Exporters will focus on shipments of dark petroleum products, as motor fuel will be supplied only to the domestic market, resulting in continued demand for rail tank cars for export shipments of fuel oil and vacuum gasoil, while the fleet for transportation of light petroleum products will be primarily used within the country, as in previous years.

The basis of Kazakhstan's product exports this year will continue to be fuel oil, which accounts for up to 75% of all petroleum product transportation from the country overseas, the international price reporting agency Argus informed Business Turkmenistan.

Domestic demand for gasoline, diesel, and jet fuel is increasing, and preventive maintenance at local refineries, as well as anticipated fuel shortages, will limit Kazakhstan's export potential for these goods in 2023.

Rail exports of fuel oil from Kazakhstan's biggest refineries could reach 2.2-2.5 million tons this year, up from 2.19 million last year and 1.61 million the previous year. Shipments will rise as fuel oil production is predicted to rise to 2.84 million tons this year, up from 2.81 million tons in 2022 and 2.41 million tons in 2021.

Export shipments of vacuum gasoil in 2023 may decline amid a planned reduction of product output at the Atyrau refinery.