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Kazakhstan to transport over 1 million tons of crude oil to China for recycling

Oil&Gas Materials 20 March 2013 10:12 (UTC +04:00)

Kazakhstan, Astana, March 20 / Trend D. Mukhtarov /

Kazakhstan will reimburse fuel and lubricant shortage due to tolling operations in China, Kazakh Prime Minister's official website said on Tuesday.

"We agreed on the need to transport 1.5 million tons of crude oil to China for processing at the production facilities of the Chinese Dushanzi refinery within the tolling operation," director of the Department of Oil Industry Development under the Kazakh Oil and Gas Ministry Kuandyk Kulmurzin said in an interview with Primeminister.kz.

He said that Kazakhstan intends to process and transport about one million tons of petroleum products to China due to tolling operations by the end of the current year. According to representative of the Oil and Gas Ministry, a processing depth at the Chinese refinery reaches 90 percent, and the yield of light oil products hits 83 percent. A processing depth hits 60-70 percent at the Kazakh refineries.

Kulmurzin said that tolling allows influencing the pricing of the final product, as Kazakh oil is used there, as opposed to the oil products imported from Russia. He also pointed out that it is possible to reduce the volume of imports of Russian oil products two-fold from the current 40 percent to 20 percent due to tolling operations.

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