Mongolia has announced plans to procure Euro-5-standard petroleum products from Kazakhstan, China and South Korea, according to a statement by the Union of Oilfield Service Companies of Kazakhstan, also known as KazService, published on its Telegram channel.

«Kazakhstan’s three major oil refineries produce gasoline and diesel that meet K-4 and K-5 standards, the local equivalents of Euro-4 and Euro-5. Mongolia is seeking to reduce its reliance on Russian supplies amid rising domestic consumption,» the statement said.

Over the past four years, Mongolia’s annual consumption of petroleum products has nearly doubled, rising from 1.7 million to 3.1 million tons. Russia has confirmed deliveries of 70,000 tons of fuel for November 2026.

Kazakhstan has been identified as a potential source for diversifying Mongolia’s petroleum product imports. However, the volume and type of fuel, pricing and logistics arrangements for potential Kazakh supplies have not yet been officially disclosed.

Mongolia could become an additional market for Kazakhstan’s higher-quality petroleum products. However, KazService notes that Kazakhstan itself restricts gasoline and diesel exports to protect domestic supplies. The development of a new export channel will therefore depend on approval of specific supply arrangements and the availability of confirmed surplus volumes.

«What would this mean for oilfield service companies? Regular exports could increase demand for services such as the maintenance and modernization of oil depots and loading terminals, the transportation and repair of rail tank cars, laboratory testing of fuel quality, and digital systems for accounting and shipment tracking,» KazService said.

The association stressed that the key issue is not simply whether Kazakhstan can produce the fuel, but whether it can deliver it to Mongolia at a competitive price. Mongolia is already experiencing delays in unloading rail tank cars and has limited storage capacity as it transitions to winter-grade diesel. Kazakhstan produces virtually no winter-grade diesel and relies on imports from Russia to meet domestic demand.

«For Kazakh companies, this represents a potential market for logistics and technical services. However, until regular contracts are signed and specific volumes are announced, it is premature to speak of large-scale exports,» the association said.

KazService believes the Mongolian market could offer an opportunity to diversify sales, but its commercial potential will depend on transportation costs, supply reliability and the ability to meet Kazakhstan’s domestic needs.

Export restrictions and domestic demand
A few days ago, retail prices for AI-92 gasoline, one of the country’s most widely used grades, and diesel fuel rose by 8 tenge (about $0,018) per liter at major gas station chains in Astana. Meanwhile, Yerlan Akkenzhenov, Kazakhstan’s energy minister, signed an order banning the export of gasoline, diesel and other petroleum products from the country from Nov. 22, 2026, through May 22, 2027.

In August, Akkenzhenov announced that the Kondensat (Condensate) refinery in Aksay, the West Kazakhstan region, which processes Russian crude oil, would supply 70% of its gasoline and diesel output to Russia. The remaining 30% would be allocated to the Kazakh market, although the refinery would retain the right to export products outside the Eurasian Economic Union (EEU). Russia had requested gasoline supplies from Kazakhstan following drone attacks on Russian refineries.

In late October, Askhat Khassenov, CEO of KazMunayGas, addressed reports that two major Kazakh refineries had received quotas to export gasoline to Russia but had not used them. He said the company’s priority remained supplying the domestic market.

According to traders, the Atyrau and Pavlodar refineries were each granted quotas to export 17,500 tons of gasoline to Russia in the third quarter. No shipments were ultimately made under those quotas.

Kazakhstan’s authorities are also working to curb the illegal, or so-called gray-market, outflow of fuel and lubricants to neighboring Russia, Kyrgyzstan and Uzbekistan, where fuel prices are significantly higher. 

Published Date:2026-11-12