BAKU, Azerbaijan, November 5. Kazakhstan's fuel
and energy sector will require hundreds of billions of dollars in
investment over the next two decades, according to the National
Energy Report prepared by the Kazenergy Association in cooperation
with S&P Global.
The report notes that Kazakhstan is seeking to diversify its
economy and establish leading positions in promising industries of
the future, including the extraction of critical minerals and
uranium, oil and gas production and processing, and the
manufacturing of higher value-added products.
"Such a strategy will enable Kazakhstan to retain a larger share
of the revenues and economic benefits generated within global value
chains than if it were to rely primarily on raw material exports,"
the report says.
Experts note that the expansion of Kazakhstan's fuel and energy
sector will involve the parallel development of its constituent
industries, with growth in one area affecting others. Their
development needs to be coordinated with broader economic growth,
while investment and production volumes should be determined by
actual demand rather than aimed solely at increasing supply.
The report identifies attracting investment in the energy
sector, which is fundamental to Kazakhstan's economy, as one of the
key challenges facing the country's entire fuel and energy
complex.
"Investment is required for geological exploration and field
development, the construction of new pipelines, additional oil and
gas processing facilities, power plants, electricity and heat
supply networks. Given the scale of these capital-intensive
projects and their long payback periods, ensuring stable and
predictable financing conditions is particularly important.
Overall, according to government estimates, hundreds of billions of
dollars will need to be invested in the fuel and energy sector over
approximately the next two decades," the report says.
