Kazakhstan negotiates with Russia on supply of fuel oil to border regions

Oil&Gas Materials 4 July 2014 08:18 (UTC +04:00)

Astana, Kazakhstan, July 1
By Daniyar Mukhtarov - Trend:

The Kazakh Ministry of Oil and Gas holds negotiations with Russian counterparts on organizing fuel oil supplies to the border regions of the country, the Kazakh Oil and Gas Minister Uzakbai Karabalin said.

"We agree with our Russian colleagues that a certain amount of oil should be supplied to the borderland. It is cheaper to bring from Russia to Kazakhstan, rather than to transport oil from Kazakh oil refineries, which are separated by a distance of two thousand kilometers each. And, it is cheaper to bring Kazakh oil into some Russian regions," he said.

The signing of the Treaty establishing the Eurasian Economic Community (EAEC) allows to solve these issues, according to the minister.

As the Kazakh minister said, such a notion as targeted imports of fuels and lubricants will disappear over time with the creation of common market of oil and oil products within the EAU.

Karabalin recalled that Kazakhstan imports about 30 percent of petroleum products from neighboring Russia, as the capacity of three Kazakh oil refineries is not sufficient to meet the needs of the country`s growing economy. At present, the construction of three Kazakh oil refineries is being conducted with about $1 billion of investment. With the completion of reconstruction by 2016, Kazakhstan will be able to produce fuel of Euro-4 and Euro-5 standards in sufficient volume.

Edited by CN