Kazakhstan, Astana, Dec. 24 / Trend D. Mukhtar /
The idea of building an oil refinery in Bulayevo city in North Kazakhstan region has no chances for realization, one of the experts in the field of refining of JSC "National Company KazMunaiGas" says.
"The idea of building an oil refinery in Bulayevo city in North Kazakhstan region has no chances for realization. This is just the slogan by people not aware of state of oil refining in the country," the representative of the national company told Trend on condition of anonymity.
Earlier, at the forum of investors held in Petropavlovsk general director of "Kazenergoregion" Camarena Sagyndyk reported that the company "Kazenergoregion" plans to build several plants including refineries in the North Kazakhstan region. It was estimated, that the plant would produce up to 12 million tons of oil a year.
According to her, the first phase of the plant will produce six million tons per year; the construction of the first phase is scheduled to begin in 2013. The plant will produce gasoline of various grades, jet and diesel fuel and bitumen. The project will cost eight billion euros.
"The project to build a refinery of this capacity is originally planned for specific amounts of raw materials. When there is evidence that such amounts of oil will be allocated, when the logistics is worked out, meaning when the issue of oil supply to Bulayevo city is researched, given there is no pipeline infrastructure in this region, only then proceeding to a feasibility study will be possible," source said.
According to the source, there is no sufficient amount of oil available for the launch of the fourth refinery. Earlier this year, then as Prime Minister of Kazakhstan Karim Massimov said, that he does not exclude the possibility of construction of the fourth refinery seeing participation of Kazakhstan in Kashagan project.
"Kashagan is an important project for Kazakhstan. Including our share in this project is fundamentally important in terms of obtaining the physical presence of oil in Kazakhstan. And perhaps, through development of the Kashagan project, we may once again face the question of construction of the fourth oil refinery in Kazakhstan ", Massimov said earlier.
But as we know, dates of commencement of production at Kashagan were postponed several times. Kazakhstan currently has three major oil refineries: Pavlodar refinery, Atyrau and Shymkent refinery petrochemical plant. In all refineries modernization works are to be in rpogress till 2015. The cost of the state program on modernization of three refineries exceeds four billion dollars.
According to representative of National Company "KazMunaiGas", the government has experienced great difficulties in finding means for upgrading three existing refineries.
"In this case, how can we talk about €8 billion required for construction of the fourth refinery in Bulayevo city in North Kazakhstan? For doing so, we need serious and solvent investors," - expert on refining stated.
He believes that in context of the Customs Union and creation of the Eurasian economic space, issue of the fourth refinery may fall altogether, taking into account the fact of 18 refineries operating in Russia and capable of supplying oil products to Kazakhstan. Currently, approximately 30 percent of high-octane gasoline is imported from bordering refineries in Russia (i.e. Omsk Refinery).
"If there will be an issue on agenda of construction of the fourth refinery in the country, most likely, it would be located in the west or in the center of the country, closer to the fields or pipelines," he concluded.