Kazakhstan ready to increase Russian oil transit to China to 10mn tonnes a year

By bne IntelliNews May 31, 2016

Kazakhstan is ready to increase the transit of Russian oil to China by 3mn tonnes to 10mn tonnes a year, the general director of Kazakhstan’s oil pipeline monopoly, Nurtas Shmanov, told a news conference in Astana on May 30.

Falling oil output and weaker demand in China has led to a decline in Kazakh oil shipments. Kazakhstan ships oil via the Atasu-Alashankou oil pipeline. It transported 11.8mn tonnes of oil via the pipeline in 2015. Of the total, Kazakh oil stood at 4.8mn tonnes and the remaining 7mn tonnes were Russian oil. The plans to increase the pipeline’s capacity to 20mn tonnes has been put on hold until Chinese demand for oil picks up.

“Today, the volume transited from the Russian territory to China is 7mn tonnes in accordance with the intergovernmental agreement between Kazakhstan and Russia. We are ready to increase it. We can reach 10 million tons without any technical actions,” Shmanov said, according to AKIpress.

Kazakhstan's proposal comes just as Russia's President Vladimir Putin is arriving to Astana to participate in the meeting of the Eurasian Economic Union (EEU) Supree Council.

Related Articles

Norway's Scatec Solar to construct €85mn solar plant in Ukraine

Norway's Scatec Solar is going to begin the construction of a €85mn solar power with a total capacity of 83 MW in Ukraine's Cherkasy region this year, according to the company's June 12 ... more

Polish PM takes over supervision of PKN Orlen and Lotos

Poland’s Prime Minister Mateusz Morawiecki has taken over supervision of two state-controlled oil and gas companies, PKN Orlen and Lotos, the energy ministry said on June 5. Stripping the ... more

Belgian court unfreezes $21.5bn of Kazakh assets in dispute with Moldovan oligarch Stati

A Belgian court has lifted a freeze on Kazakh National Fund assets worth $21.5bn imposed as part of a dispute with Moldovan oligarch Anatolie Stati, the Kazakh justice ministry said on May 30. It ... more