Kyrgyzstan Turns to Domestic Refining

Kyrgyzstan has signed a contract with the Kyrgyz-Chinese company Central Asian Energy LLC to build a $25m mini oil refinery in the south of the country. The plant will have an annual processing capacity of 450,000 metric tons and produce gasoline and diesel meeting K5 and K6 standards, as well as bitumen and motor oils.

The first phase of construction is due to be completed this fall. The project is intended to boost domestic fuel production and reduce the country's dependence on imports.

Kyrgyzstan currently sources more than 90% of its gasoline from Russia. However, supplies have come under pressure as Ukrainian drone strikes on Russian refineries have disrupted production, contributing to shortages of AI-95 and AI-98 gasoline in Kyrgyzstan.

In response, the government has temporarily regulated fuel prices, banned petroleum exports and secured alternative supplies from China and Belarus. It has also arranged for crude oil to be processed in neighboring Uzbekistan.

(Reuters, Max)