PetroChina : Agrees Kazakhstan to Raise Pipeline Crude Price
Kazakhstan’s oil producers and PetroChina agree to raise Kumkol crude price to China via Atasu-Alashankou pipeline.
Discounts of the Kumkol crude price against Brent crude price fell from USD 6.7 to USD 5.83 per barrel in January in terms of DAP price, which will spur export increase.
Last fall of formula-based Kumkol crude DAP price occurred in October 2009, which led to decrease of Kazakhstan’s oil exports to China.
Sources say that PetroChina agrees to adjust the discounts after lengthy negotiations. The company informed suppliers of price changes but contracts are under negotiations.
The Kazakhstan-China pipeline transmit 20 million tons of oil annually, and sources are Kazakhstan’s oil producers and Russia’s Rosneft. PetroChina is the only Chinese buyer of the oil.