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KMG managing director: Modernization of Atyrau refinery enters in practical stage of realization

Oil&Gas Materials 30 July 2010 13:44 (UTC +04:00)

Azerbaijan, Baku, July 30 / Trend S. Suleymanov /

Today JSC "Development Bank of Kazakhstan" and Atyrau Refinery (a subsidiary of JSC KMG - Processing and Marketing) signed a general loan agreement worth more than $ 1 billion in Astana.

"The General Loan Agreement was signed within the project" Construction of a complex producing aromatic hydrocarbons in the Atyrau refinery. From this moment the practical phase of the modernization of the refinery begins, " KazMunaiGas managing director Daniyar Tiesov said after the signing ceremony.

He said that the loan totaling $1,06 billion is given for 13 years at preferential interest rates. He refused from calling the exact interest rate.

"A source of credit is a credit loan from Chinese Eximbank and funds from the National Fund of Kazakhstan. The Chinese side gives 85 percent of this sum, and 15 percent - our National Fund", he said.

According to his information, it will be completed in 41 months.

It was reported that this project is included in a comprehensive plan of development and modernization of all three refineries in Kazakhstan.

The plan, developed by the government, is aimed at ensuring energy security in Kazakhstan.

It was reported that Atyrau Refinery signed a contract on a turnkey basis for the construction of a complex for production of aromatic hydrocarbons with the Chinese company Sinopec Engineering October 29, 2009.

Realization of the project will allow Atyrau refinery to join a single petrochemical chain of countries, implement innovative technologies that meet the high level of European environmental standards, not only keep competitiveness on today's fuel market, but also improve the ecological and sanitary situation in the region.

JSC "Development Bank of Kazakhstan" was established in 2001. It is included in JSC "National Welfare Fund Samruk - Kazyna". The main activities are improving and increasing the efficiency of public investments, development of industrial infrastructure and processing industry, assistance in attracting foreign and domestic investments in the economy.

JSC National Company KazMunaiGas is Kazakh national operator for the exploration, extraction, processing and transportation of hydrocarbons. JSC National Welfare Fund SamrukKazyna owns 100 percent of KazMunaiGas's shares.

JSC KMG - processing and marketing is a subsidiary of KazMunaiGas. The company includes Atyrau refinery, Shymkent refinery, Pavlodar Petrochemical Plant, "The Rompetrol Group" company. Main activities include management of refinery assets, export of oil and oil products, development of retail sales of oil products.

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