Kazakhstan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kazakhstan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Energy Sector
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Kazakhstan is one of Eurasia’s leading energy producers, with proven crude oil reserves of 30 billion barrels (12th largest globally, second in Eurasia). Oil production averaged 1.76 million barrels per day in 2024, driven by mega-projects such as Tengiz, Kashagan, and Karachaganak. Gas output is largely associated with oil extraction, with one-third reinjected to boost liquids. Around 80 percent of oil is exported, mainly via the Caspian Pipeline Consortium (CPC) through Russia, with smaller flows to China and Azerbaijan.

The sector is dominated by international ventures: Tengizchevroil (Chevron, ExxonMobil, KazMunayGas, Lukoil) operates Tengiz and Korolyov fields, while KazMunayGas (KMG) holds stakes in 47 enterprises. Recent initiatives include the Future Growth Project at Tengiz, boosting output and achieving 71 percent local content. Refining modernization continues at Shymkent, alongside expansion of Caspi Bitum.

Electricity generation is dominated by fossil fuels: coal (75 percent) and gas (10 percent) accounted for 85 percent of output in 2024, totaling 117.9 billion kWh. Renewables contributed approximately 15 percent (hydro: 9.5 percent, wind: 3.8 percent, solar: 1.6 percent). Despite being the world’s largest uranium producer, Kazakhstan has no operating nuclear plants since BN-350 was decommissioned in 1999. In 2025, Rosatom was selected to construct a new nuclear power plant in the Almaty region.

The energy system faces challenges: northern Kazakhstan produces most electricity, while southern regions rely on imports and long-distance transmission, causing losses of over 7.5 TWh in 2020. KEGOC, the state-owned grid operator manages transmission, but 65 percent of power plant equipment is over 20 years old. Modernization of plants and networks is a national priority under the 2030 energy plan.

Leading Sub-sectors

Oil production, which averaged 1.76 million barrels per day in 2024, was driven by mega-projects such as Tengiz, Kashagan, and Karachaganak, which dominate upstream output. Gas production is largely associated with oil extraction, with one-third reinjected to boost liquids. Downstream diversification is underway through projects like the Silleno polyethylene plant (1.25 million tons annual output by 2029) and a Gas Separation Complex (GSC) to recover ethane and propane.
The petrochemical sector is expanding rapidly, with a $15 billion roadmap to 2030 focused on polypropylene and polyethylene, including a cluster in Atyrau and a new gas chemical complex in the National Industrial Petrochemical Technopark. Refining modernization continues at Shymkent and Caspi Bitum, while digitalization measures are being introduced across refineries and gas plants.

Kazakhstan’s electricity generation remains dominated by fossil fuels (85 percent) but renewables are growing. As of December 2024, 148 renewable facilities were operational with 2,903 MW installed capacity: 59 wind plants (958 MW), 46 solar plants (1,148 MW), 40 hydropower plants (280 MW), and three biogas plants. By 2030, Kazakhstan aims to reach 10 GW of renewable capacity, supported by auctions for 6.7 GW between 2024–2027. Hydropower leads, accounting for over 63 percent of renewable generation in 2024.

Nuclear energy is re-emerging, with preliminary work on the first nuclear power plant in Almaty Region and plans for a second and third. Kazakhstan targets a five percent nuclear share by 2035. Small Modular Reactors (SMRs) are under consideration to diversify supply, reduce coal dependency, and support hydrogen production.

Opportunities

Across all subsectors, U.S. firms can drive digitalization of refineries, pipelines, and power plants, improving efficiency and transparency. Training programs and workforce development initiatives are needed to build local capacity. Participation in projects financed by multilateral development banks such as the EBRD, ADB, and World Bank will further support Kazakhstan’s modernization agenda and open doors for long-term partnerships. Specific opportunities include:
•    Upstream Oil & Gas: Kazakhstan’s upstream sector offers strong opportunities for U.S. companies to supply advanced drilling equipment, turbines, compressors, pumps, valves, seismic processing tools, and petroleum software. The Caspian’s deep, high-pressure, sulfur-rich formations require specialized technologies for gas sweetening, dehydration, and injection. There is also demand for services in well stimulation, field abandonment, underwater repair, and spill containment, where U.S. expertise is highly valued.
•    Petrochemicals & Downstream: The downstream sector is expanding through projects like the Silleno polyethylene plant and the Gas Separation Complex (GSC), which will supply ethane-based feedstock. U.S. firms can partner in these initiatives by providing industrial automation, monitoring systems, and sulfur removal technologies. Consulting and technology transfer for petrochemical cluster development in Atyrau and other regions also present significant opportunities to support Kazakhstan’s diversification strategy.
•    Power Generation & Renewables: Kazakhstan is modernizing its power sector, creating opportunities to supply turbines, boilers, and equipment for thermal plant upgrades such as Aksu SDPP and Karaganda TPP-3. U.S. companies can invest in wind, solar, and hybrid projects under the 2035 Action Plan, while also supporting construction of maneuverable gas-fired stations in key cities. Digitalization of grid systems, smart metering, and balancing market development are additional areas where U.S. technology can play a transformative role.
•    Nuclear Energy: The reintroduction of nuclear power provides opportunities for collaboration on Small Modular Reactor (SMR) deployment, feasibility studies, and hydrogen-linked nuclear projects. U.S. companies can contribute advanced safety systems and nuclear technologies, helping Kazakhstan diversify its energy mix and reduce reliance on coal while addressing growing demand in southern regions.

Resources

Key stakeholders:
•    Ministry of Energy of the Republic of Kazakhstan
•    Kazakh Institute of Oil and Gas (KING)
•    KazEnergy Association
•    KazMunayGas 
•    KMG Petrochem
•    TengizChevrOil 
•    North Caspian Operating Company (NCOC) 
•    Karachaganak Petroleum Operating Company (KPO)
•    Samruk Energy 
•    Kazakhstan Electricity Grid Operating Company (KEGOC)
•    Kazakhstan Nuclear Power Plants
•    Kazakhstan Electricity Association
•    Kazakhstan Operator of Electricity Market
•    KazAtomProm

Trade Events:
•    Power Astana 2026
•    Atyrau Oil and Gas Exhibition 
•    Powerexpo Almaty 2026
•    Kazakhstan International Oil and Gas Exhibition 2026 
 

For more information on the energy sector, contact Commercial Specialist Azhar Kadrzhanova azhar.kadrzhanova@trade.gov.

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