In Kyrgyzstan, the parliamentary committee on international affairs, defense, security, and migration approved in its second reading a bill ratifying a loan agreement with the OPEC Fund for International Development, which will ensure an influx of investment into domestic oil refining, Vesti.kg reports.
The OPEC Fund will allocate $30 million to Kyrgyzstan under budget support terms. The agreement, signed last September, provides for extremely favorable terms for the country:
- Loan term: 20 years.
- Grace period: 5 years (during which only interest is paid).
- Interest rate: 1.25% per annum.
The Cabinet of Ministers of Kyrgyzstan will allocate these funds as a budget loan to Kyrgyzneftegaz, an open joint-stock company. The main goal is a large-scale technological upgrade of the company's oil refinery, Kyrgyz Petroleum Company CJSC, located in Jalal-Abad.
The refinery upgrade project is already in its active phase, and the new funds will expedite the work, which is scheduled for completion by the end of 2027. The upgrade is aimed at addressing several strategic objectives:
Environmental Standards: Transition to the production of K-4 and K-5 fuel classes (similar to Euro-4 and Euro-5), which complies with the technical regulations of the Eurasian Economic Union (EAEU).
Refining Depth: Increased yield of light petroleum products (AI-92, AI-95 gasoline, and diesel fuel), which will reduce the country's dependence on imported fuels and lubricants.
Cost Efficiency: Following the launch of the upgraded capacity, Kyrgyzneftegaz's profitability is projected to more than double.
The allocation of funds comes amid the government's overall commitment to energy independence. In parallel with the Jalal-Abad project, another refinery with a capacity of 500 tons per day is being built in the Batken region, and Kyrgyzneftegaz continues to reactivate mothballed wells to increase its own crude production.
CentralasianLIGHT.org
January 27, 2026