ASTANA – Kazakhstan plans to invest an estimated $327 million to expand two key sections of its oil pipeline system toward China, increasing their combined capacity to 35 million tons annually and strengthening the country’s eastern export corridor.
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KazTransOil, the nation’s oil transport company, presented the investment plans to investors on Sept. 2 during the virtual Issuer Day at the Kazakhstan Stock Exchange. The project, scheduled for 2026-2030, is expected to be financed mainly through borrowing, inbusiness.kz reported, citing Interfax.
The capacity of Kenkiyak-Atyrau pipeline that connects Kenkiyak station in the Aktobe Region with Atyrau is planned to rise from around six million to 15 million tons of oil per year, while the Kenkiyak-Kumkol pipeline is expected to increase from 10 million to 20 million tons.
Five new oil pumping stations are planned to support the expanded capacity.
The Kenkiyak-Atyrau pipeline, which runs through the Aktobe and Atyrau regions, can operate in both directions. This allows it to serve both export logistics and domestic refineries by transporting western Kazakh oil toward the country’s processing facilities.
The Kenkiyak-Kumkol pipeline forms part of the eastern route to the Atasu-Alashankou pipeline and onward to China.
The expansion comes as Kazakhstan continues to strengthen alternative oil transportation routes. The Astana Times reported in July that the Kazakhstan-China pipeline system has become an important alternative export corridor amid disruptions affecting other routes. The Kenkiyak-Kumkol pipeline has transported more than 100 million tons of oil since it began operations.
The project has been under preparation for several years. In May 2023, KazMunayGas and China National Petroleum Corporation agreed to conduct a preliminary study on increasing the capacity of the Kenkiyak-Atyrau and Kenkiyak-Kumkol sections.
The latest $327 million estimate moves the project closer to the investment stage, although the final cost may change following project design, feasibility studies and decisions on equipment and financing.
Expanding regional transit
Kazakhstan is also broadening its role as a regional oil transit hub.
In August, KazTransOil transported 35,000 tons of oil to the Kyrgyz Republic, marking the first such transit deliveries through Kazakhstan. KazTransOil dispatched the first shipment on Aug. 15.
Oil is transported through Kazakhstan’s main pipeline system to the Shagyr oil loading facility, where it is transferred into railway tank cars for delivery to the Kyrgyz Republic.
The new route expands Kazakhstan’s portfolio of regional oil transit services and complements its established connections with China and other export markets.
KazTransOil previously reported that it transported 45.12 million tons of oil through its main pipeline system in 2025, a seven-year high.
