Azerbaijani gasoline supplies to Kazakhstan under question
Astana, Kazakhstan, Nov. 1
By Daniar Mukhtarov - Trend:
Currently, the contractor (the company, which should secure supplies) doesn't confirm the readiness for delivery of specified volumes of Azerbaijani oil products to Kazakhstan, the Deputy Director General for Marketing at the Kazakh company KazMunaiGas Processing and Marketing Yerlan Koibagarov said Nov. 1.
He made the remarks at a briefing in Astana, Kazakhstan.
Speaking of the reasons, he said it was due to temporary restrictions on exports of high-octane oil products from Azerbaijan.
"In case of non-fulfilment of obligations by the contractor, our company will conduct the needed procedures to terminate the contract and to make a refund," Koibagarov said.
Earlier, Kazakhstan's Energy Ministry said the country signed a contract with the international company Lanturno Management S.A., which will deliver Azerbaijan's gasoline through Russia.
Koibagarov said that on Oct. 10, 2014, a contract was signed with a contractor company to supply up to 6,000 metric tons of the AI-92 gasoline from Azerbaijan to Kazakhstan.
Koibagarov didn't say the name of the contractor company, citing the terms of a commercial deal.
"As part of this contract, on Oct. 14 we carried out preliminary payment for 3,000 metric tons of AI-92 gasoline. The contract stipulates the supply of the paid volume before Nov. 10, 2014," Koibagarov added.
He also noted that the restrictions in Azerbaijan on the export of high-octane oil products and disruption of supplies specified by the contract will not have negative consequences for Kazakhstan's fuel market.
He said that in order to meet the domestic oil products market's demands, in October 2014, the KazMunaiGas Processing and Marketing delivered 42,300 metric tons of AI-92 gasoline from Russia and Belarus.
Aside from that, currently the oil refineries in Russia and Belarus shipped 37,000 metric tons of AI-92 gasoline, and the gasoline will arrive in November, 2014.
Koibagarov said the company also planned to sign contracts to deliver in November over 50,000 metric tons of AI-92 gasoline produced by the Belarusian Mozyr and Novopolotsk oil refineries and a number of Russian oil refineries.
According to the forecasts, the gasoline production in Kazakhstan in 2014 will amount to 2,885 million metric tons, while consumption is expected to reach 4,168 million metric tons.
Kazakhstan is currently upgrading all of its oil refineries, which is scheduled for completion in 2016. The Energy Ministry said that after the upgrade, Kazakhstan's need in light petroleum products will be fully met.
Meanwhile, the level of gasoline consumption in Azerbaijan, for the first time, was equal to the volume of its production.
Azerbaijan's State Oil Company (SOCAR), the sole producer of oil products in Azerbaijan, ceased the production of AI-95 gasoline this spring, and started producing the AI-92 gasoline, the most consumed gasoline in the country, in order to meet Azerbaijan's growing gasoline demand.
Currently, the AI-95 gasoline is imported to Azerbaijan and sold at free regulated prices. Since the AI-92 gasoline is produced in the country, its price is fixed (0.7 AZN) and regulated by the Tariff (Price) Council of Azerbaijan.
The official exchange rate for Nov. 1 is 0.7844 AZN/USD.