Pavlodar oil refinery to have sufficient supply of Russian oil in 2012

November 29. Interfax-Kazakhstan. Pavlodar

Pavlodar oil refinery to have sufficient supply of Russian oil in 2012The Pavlodar Petrochemical Plant (PPP) will have enough Russian oil available in 2012, despite the quota reduction, says its management.

“Kazakhstan’s Ministry of Oil and Gas makes supplying the Pavlodar plant with oil its first priority and will deal with all the rest later,” PPP general manager Shukhrat Danbai told Interfax-Kazakhstan on Tuesday.

He said that the Pavlodar refinery applied for 5 million tons of Russian oil in 2012 and stressed that next year the refinery will not be processing Kazakh crude oil.

This year, the refinery had no other choice, but to accept Kazakhstan’s crude for processing. “We were having misunderstanding [over supply issues], which we resolved with Kazakh oil.”

Danbai, however, was grateful for the experience. “We have talked a lot about this option [the supply of Kazakh oil to PPP from Kumkol fields in Kyzylorda oblast -” IF-K “), but this time we put it to reality. It was important for Kazakhstan to test an optional supply source,” he said.

As reported, Kazakh Oil and Gas Minister Sauat Mynbayev said at a Monday government’s meeting that next year Russia would lower oil supplies to Kazakhstan to 6 million tons.

“Next year will be a difficult one. Russia said it would supply 6 million tons in 2012 instead of the 7 million tons we were receiving in previous years. (…) Besides, Russia will reduce the supplies of gasoline and aviation fuel. Thus, Russia will lower oil supplies to Kazakhstan by 14% next year,” Mr Mynbayev said.

The PPP is currently owned by the KazMunayGas national company. The refinery was built in 1978 to process western Siberian oil to Kazakhstan through a pipeline. Its processing capacity is 7.5 million tons of oil a year.

In November the refinery started processing Kazakh oil on the shortage of Russian crude supplies. Though, the refinery encountered certain technical difficulties, as Kazakh oil has high gas content.

Russia set a quota for crude oil supply to Kazakhstan valid until 2014, which is split between two refineries: Pavlodar and Shymkent (Kazakhstan also has another refinery – the Atyrau refinery).