Kazakhstan’s Oil Logistics Trap: Higher Prices, Limited Gains
Escalation in the Middle East has pushed oil back above $100 a barrel. For Kazakhstan, whose budget remains heavily dependent on commodity exports, that should have been good news. But a high price matters only if the oil can reach buyers. For the world’s largest landlocked country, that is where the problem begins. European refiners are looking for alternatives to disrupted Saudi supplies, while problems along established routes through the Strait of Hormuz and the Red Sea are increasing demand for crude from other regions. More than 80% of Kazakhstan’s oil exports, however, move through the Caspian Pipeline Consortium system across Russian territory to a terminal near Novorossiysk. The Middle East crisis is pushing prices and global freight costs higher, while attacks around Russian infrastructure are increasing the risks to Kazakhstan’s main export route. Over the past decade, Kazakhstan has significantly increased its oil exports. According to the Bureau of National Statistics, volumes rose from 63.6 million metric tons in 2015 to a record 76.3 million tons in 2025, an increase of about 20%. Exports grew from 65.2 million tons in 2022 to 71 million in 2024 and 76.3 million tons in 2025. Expansion at the Tengiz field contributed to that growth. Kazakhstan’s oil and gas condensate production reached 99.6 million tons in 2025. The government had planned for about 98 million tons in 2026, but export disruptions have already forced temporary output cuts. Revenue has not risen as steadily as volumes. “In monetary terms, growth over the past decade was considerably stronger, although the trend, as noted above, was also much more volatile. The value of exports increased from $26.8 billion in 2015 to $40 billion in 2025, or by 49.3%. The highest figure during this period was recorded in 2022, at $46.9 billion,” Ranking.kz said in its analysis. Physical volumes and export revenue have often moved in different directions. “This was particularly evident in 2025: Kazakhstan exported 7.4% more oil than a year earlier, but its value fell by 6.8%. The average estimated value of one exported metric ton declined from $604 in 2024 to $524 in 2025,” the analysts calculated. In the first half of 2026, Kazakhstan exported $40.3 billion worth of goods. Crude oil and petroleum products accounted for 46.5% of the total. Export statistics and transportation data measure different things. The Bureau of National Statistics records goods cleared for export, while the Energy Ministry and pipeline companies report volumes pumped, transshipped, and transported. The same cargo can pass through several sections of the system, so those figures cannot simply be added together. In March, Talgat Makuov, acting director of the Energy Ministry’s oil refining and transportation department, said 64.8 million tons of Kazakh oil had moved through CPC in 2025. Another 9.2 million tons went through the Atyrau-Samara pipeline, while 1.1 million tons were shipped through the Atasu-Alashankou pipeline toward China. Against those volumes, the Trans-Caspian route remains small. In 2025, 1.26 million tons were shipped across the Caspian toward the Baku-Tbilisi-Ceyhan pipeline. The plan...
