The Kazakhstan oil & gas downstream market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 3.78% during 2023–2031.The growth of the market is attributed to rising demand for natural gas and rising investment in refineries.
Upstream, midstream, and downstream are the three main sectors of the oil and gas business. The downstream industry includes the refining of petroleum crude oil, processing and purification of raw natural gas, and marketing & distribution of crude oil and natural gas-derived goods. Gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquefied petroleum gas (LPG), as well as hundreds of petrochemicals, are all products of the downstream industry.
Midstream operations are frequently grouped with downstream operations and are considered part of the downstream sector. Refining and marketing are included in the downstream sector.
Refining is a complicated process; the objective is to convert crude oil into petroleum products that can be used for a number of things including heating houses, fuelling automobiles, and creating petrochemical plastics.
In the year 2019, Kazakhstan had just three refineries. A plan for fourth major refinery is under work, which is estimated to enhance refinery capacity. In 2019, major crude oil discoveries were found in southern Kazakhstan, which are estimated to have considerable reserves and might provide a chance for new refineries to process the crude oil. Increased demand for natural gas in the US and throughout the world is expanding the market size and is predicted to be the primary driver.
The ongoing COVID-19 epidemic had a significant impact on many industries, but the worldwide oil and gas industry has been particularly heavily struck. Many oil and gas corporations have been forced to shut down Covid-19, which had an adverse impact on output in both upstream and downstream activities. The price drop of crude oil in a short period of time was perhaps the largest and most important consequence of the coronavirus epidemic on the downstream oil industry.
As the world emerges from the coronavirus crisis, players in the oil and gas industries are battling with diminishing demand, guaranteeing employee safety and company stability, and an oil price war. Reduced consumption, low oil prices, and internal budgetary issues from the Covid-19 outbreak continue to put pressure on Kazakhstan's oil and gas sector in the near term. However, due to huge reserves, subterranean potential, active exploration activity, and the government's continuous determination to raise output over the long term, the country will remain a major oil producer and exporter.
Market Trends, Drivers, Restraints, and Opportunities
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Increasing demand of natural gas and rising investment in refineries is anticipated to boost the market during the forecast period.
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Rapid growth of the oil and gas industry is major factor driving the market in the coming years.
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The high value of hydrogen sulphide in natural gas necessitates improved refining equipment is estimated to hamper the market growth.
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Lack of skilled labor act as main challenge that can hinder the market expansion in the coming years.
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Domestic and foreign enterprises looking to develop their operations in Kazakhstan's midstream and downstream oil and gas industries is projected to create significant opportunities for the market players.
Scope of the Report
The report on the Kazakhstan oil & gas downstream market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Oil & Gas Downstream Market - Kazakhstan Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Refineries and Petrochemical Plants
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Regional Scope
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Kazakhstan
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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KazTransOil JSC, Kazakhstan Petrochemical Industries Inc. LLP, PJSC Lukoil Oil Company, National Company JSC (KazMunayGas), and PetroKazakhstan Inc.
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Market Segment Insights
The refineries segment is estimated to hold major market share
The Kazakhstan oil and gas downstream market is bifurcated into refineries and petrochemical plants segment. Refining is a complicated process, but the aim is to convert crude oil, into petroleum products that can be used for heating houses, fueling automobiles, and creating petrochemical plastics. Refining involves a variety of methods, depending on the desired final result. Cracking splits molecules into smaller fragments to make gasoline and other lighter hydrocarbons; hydrotreating removes undesired elements such as sulphur and nitrogen from hydrocarbons; and hydrotreating removes undesired elements such as sulphur and nitrogen from hydrocarbons. Other items, such as synthetic rubber and polymers, are made from the gases released by cracking. Refineries are typically placed near population areas to assist final product marketing and distribution.
Pavlodar, Atyrau, and Shymkent are Kazakhstan's three major oil refineries. In 2018, the total refining capacity of all three facilities is scheduled to exceed 16.5 million tons.
Refinery capacity in Kazakhstan grew from 350 thousand barrels per day (kb/d) in 2015 to 390 kb/d in 2018. From 342 kb/d in 2017 to 374 kb/d in 2018, the refinery's throughput grew by 2.26 percent.Due to refinery development and increased demand for refined oil, oil refining capacity is predicted to expand in the projection period.
Petrochemicals are chemical compounds made from natural resources such as petroleum or crude oil. Chemical compounds generated by petrochemical facilities can also be made using natural gas, shale gas, or coal as a basic resource. Petrochemical-based end-user items include fuel, fertilizer, and oils, as well as everyday commodities like credit cards, milk jugs, and appliances. Olefins and aromatics are two types of petrochemicals made from petroleum. Ethylene, propylene, and butadiene are olefins, which are used as basic ingredients in the production of plastics. Aromatics are raw ingredients for dyes and synthetic detergents, such as benzene, toluene, and xylene.
Segments
Refineries
Petrochemical Plants
Key Players
- KazTransOil JSC
- Kazakhstan Petrochemical Industries Inc. LLP
- PJSC Lukoil Oil Company
- National Company JSC ( KazMunayGas )
- PetroKazakhstan Inc.
Competitive Landscape
Key players competing in the Kazakhstan oil & gas downstream market include KazTransOil JSC, Kazakhstan Petrochemical Industries Inc. LLP, PJSC Lukoil Oil Company, National Company JSC ( KazMunayGas ), and PetroKazakhstan Inc.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.
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