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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

INTERVIEW: Biomethane can make up Ukraine’s gas shortfall - Ukraine Bioenergy Association

Ukraine is rapidly developing its biomethane sector with ambitions to become a major European supplier. Georgii Geletukha, head of the board at the Bioenergy Association of Ukraine, told bne ... more

Poland’s Orlen signs deal to supply Ukraine with LNG

Ukraine’s Naftogaz will purchase 100mn cubic metres of LNG from Poland’s Orlen, Ukraine’s biggest state-owned energy firm announced on March 7. The LNG will be transported from cargoes ... more

OPEC+ continues with production plan despite Trump’s demands

OPEC+ has decided to continue with its current oil production plans after a review meeting on February 2 despite calls from US President Donald Trump to lower crude prices. According to a ... more

Follow Us On

Most Read

  1. Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
    20 days ago
  2. Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
    10 months ago
  3. Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
    3 years ago

Reports

Dismiss