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.
