# Kazakhstan energy sector and refining expansion > Live situation record from CLSTR: https://clstr.news/situations/kazakhstan-energy-sector-and-refining-expansion > Updated: 2026-09-23T07:06:29.000Z. Sources: 6. Developments: 2. Kazakhstan is pursuing strategies to expand its energy sector and refining capacity. Initially, the country reached an agreement with Russia to process Russian crude oil at the Kondensat Refinery in the West Kazakhstan region. Under this deal, approximately 70 percent of refined gasoline and diesel will be exported to Russia, while up to 30 percent is reserved for the Kazakh domestic market. The crude is to be transported via railway. Building on these efforts, the Kazakh Ministry of Energy announced plans to auction 112 subsoil blocks for hydrocarbon use by the end of 2026. These auctions will require bidders to invest in geological exploration, human capital, research, and local infrastructure. Additionally, Prime Minister Olzhas Bektenov has directed that a decision regarding the capacity and location of a fourth oil refinery be made by the end of 2026, as the government works toward a long-term refining goal of 40 million tons per year. ## Timeline ### 2026-09-23: Kazakhstan to auction hydrocarbon blocks and expand oil refining Kazakhstan plans to auction 112 hydrocarbon subsoil blocks by late 2026 and will decide on the capacity and location of a fourth oil refinery by the end of this year to boost energy security. 3 sources. https://clstr.news/cluster/kazakhstan-to-auction-hydrocarbon-blocks-and-expand-oil-refining ### 2026-08-26: Kazakhstan and Russia agree to fuel processing deal Kazakhstan and Russia have agreed to process Russian crude at the Kondensat Refinery, with 70% of refined fuel destined for Russia and 30% for Kazakhstan's domestic market. 3 sources. https://clstr.news/cluster/kazakhstan-and-russia-agree-to-fuel-processing-deal --- Cite as: Kazakhstan energy sector and refining expansion. CLSTR, https://clstr.news/situations/kazakhstan-energy-sector-and-refining-expansion