Russia to Supply Kazakh Refineries With Crude

Oct 2. Bloomberg

By Nariman Gizitdinov

Russia to Supply Kazakh Refineries With CrudeRussia will supply Kazakh refineries with 7 million metric tons of crude this year and the same amount next year, according to the head of the Central Asian country’s Pavlodar refinery.

Kazakhstan’s Shymkent refinery has already received 2 million tons this year, Pavlodar Chief Executive Officer Shukhrat Danbay said at a conference in Astana today. The two countries will continue talks for an agreement on 2014 supply.

The Pavlodar refinery, which uses crude from Siberia, plans to finish a $1.7 billion upgrade by 2016 so that it will be able to process any grade of oil, he said.

KazMunaiGaz National Co. owns Pavlodar and, together with China National Petroleum Corp., the Shymkent plant.

Pavlodar can process 100,411 barrels a day while Shymkent’s capacity is 160,000 barrels a day, according to data compiled by Bloomberg.

Technip SA (TEC) won the front-end engineering design contract for upgrading the Pavlodar oil refinery, and that contract is scheduled to be completed in the second half of 2013, the Paris- based company said in a Sept. 26 statement. A second contract concerns the revamp of the Shymkent refinery, whose FEED documentation is scheduled to be completed by the end of this year, Technip said.