Russia plans to export up to 10 million tons of oil to China through Kazakhstan

Oil&Gas Materials 11 January 2013 11:42 (UTC +04:00)

Azerbaijan, Baku, Jan. 11 / Trend E. Kosolapova/

Russian Rosneft plans to increase oil exports to China by 10 million tons, Russian newspaper Kommersant reported with reference to a source in the company. The company will discuss this issue with Chinese CNPC in Moscow on Jan.14.

Rosneft plans to pump the additional oil volumes to China through Kazakhstan's Atasu-Alashankou pipeline.

Earlier Russian Gazprom oil and TNK-BP pumped oil through this route. However, Russian oil supplies through Kazakhstan stopped in 2010.

In September Kazakhstan significantly reduced tariff for Russian oil transportation to China because it was not able to fill Atasu-Alashankou pipeline by own oil.

But Russian oil transporting company Transneft slams the idea of oil transportation through Kazakhstan.

"We do not support this initiative because oil transit through Kazakhstan to China result in Transneft's heavy losses. We will lose $1.5 billion revenue in such case. This money will go beyond the [Russian state] budget," Transneft's head Nikolay Tokarev said earlier.
Moreover, according to Tokarev, an increase in oil export to China will result in a decrease in oil exports to Europe.

As a result, Russia "risks to show itself as an unpredictable partner", Transneft's head said.

Russian government is aware of the Rosneft plans on oil export to China via Kazakhstan, however still does not support them, a source in the government told Kommersant.
"Pouring more money into the Kazakhstan's economy makes little sense," the source said.