Kyrgyzstan approves plan to build mini oil refinery amid Russian supply problems
Kyrgyzstan has agreed to build a $25 million mini oil refinery in the south of the country as it seeks to boost domestic fuel production and reduce reliance on imports amid tightening supplies from Russia.
The agreement to construct the refinery, which will have an annual capacity of 450,000 metric tons, was recently signed with Kyrgyz-Chinese company Central Asian Energy LLC, which will finance the project.
The plant will produce gasoline and diesel meeting K5 and K6 environmental standards, as well as bitumen and motor oils. The first phase of construction is due to be completed in autumn 2026.
Kyrgyzstan relies on petroleum product imports, sourcing more than 90% of its gasoline from Russia. Russia has faced fuel shortages since late May due to production cuts following attacks on its refineries by Ukrainian drones.
In late June, the Association of Oil Traders of Kyrgyzstan reported a shortage of AI-95 and AI-98 grade gasoline caused by restricted supplies from Russia and a seasonal increase in demand.
Authorities have taken a series of steps in recent weeks to stabilise the fuel market, including introducing temporary price controls, later lifting state price regulations for AI-95 gasoline, and imposing a ban on petroleum product exports.
Kyrgyzstan is also awaiting fuel deliveries from China and Belarus.
Separately, the energy ministry said it reached an agreement with neighboring Uzbekistan to refine a portion of its petroleum products at Uzbek refineries before shipping the finished product back to Kyrgyzstan.
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