Kazakhstan plans to build oil-products pipeline from China
Kazakhstan, Astana, Jan. 28 / Trend D. Mukhtarov /
Kazakhstan is considering the construction of oil pipeline on the Chinese border. This was announced on Monday by the Minister of Oil and Gas of the Republic, Sayat Mynbayev.
"At present, the issue of increasing capacity through the construction of oil pipeline on China-Kazakhstan border is under consideration," Mynbayev said at the Collegium of the Ministry of Oil and Gas, attended by the Prime Minister, Serik Akhmetov.
Such a decision, he said, is caused by the desire to increase the volume of tolling supply of fuel and lubricants (recycling of foreign raw materials with further export of finished goods) from neighboring China.
"It was decided to hold the tolling operations in China, as we can not replace the entire volume of imports from Russia. Alongside, there are capacity constraints on the "Dostyk", the minister said.
Mynbayev said that Kazakhstan intends to recycle around 500,000 tons in China through a tolling.
According to him, the pipeline will be in effect until the completion of the reconstruction of the three major Kazakh oil refineries.
"That is, until the time when we will become completely self-sufficient, in the end of 2015," the Minister said.
"We are import dependent, except for fuel oil, and especially dependent on jet fuel and gasoline, so on October 19, 2012, the strategy on counter oil supplies to Russia for petroleum products imported from Russia was signed. Currently, this agreement is under domestic procedures, and in accordance with the terms of the strategy, we have to import in the RF 1.2 and 1.5 million tons of oil for petrochemicals imported in 2012, of course, on paid basis, but the price for this oil is lower than the export price for far abroad countries," Mynbayev said.
According to him, fulfillment of commitments under this agreement by the republic will have an impact on reducing the national budget income received in the form of rent tax, the tax on mining and export customs duties, which explains the construction of the oil pipeline to increase tolling in China.