Russia cuts supplies to Kazakh oil processing plant twice

Oil&Gas Materials 18 May 2012 14:36 (UTC +04:00)

Azerbaijan, Baku, May 16 / Trend E. Kosolapova/

Russia has reduced oil supplies to Kazakh Pavlodar Petrochemical Plant twice, a source in the industry told RIA Novosti.

"Usual crude oil supplies hit 500,000 tons. In May Russia will deliver little over 270,000 tons," the source said.

According to the source, the plant is on the edge of stoppage.

The Kazakh party explains this reduction in oil supplies by technical impossibility of Russian Transneft to pump over 300,000 tons per month to Pavlodar refinery.

In turn, Transneft explains this reduction by unresolved problems with documentation.

"Kazakhstan has not signed the calculation methodology of export duties on oil and petroleum products within the Customs Union. This situation concerns us. We can pump oil, but we act in accordance with the export schedule, provided by the Russian Energy Ministry," Transneft official spokesman Igor Demin told Prime agency.

The calculation methodology of export duties is the main point of the indicative balance, which determines the volumes of energy supplies within the Customs Union, Transneft said.

According to Transneft, the company will supply 275,000 tons of oil to Pavlodar refinery in May.

Pavlodar petrochemical plant is affiliated company of Kazakh National Oil and Gas Company KazMunaiGas. Its installed capacity amounts to 7.5 million tons.