Kazakhstan, Uzbekistan to construct Shymkent-Jizzakh oil pipeline by 2021

Kazakhstan Reveals Plans For Cargo Transportation Via Azerbaijan

Kazakhstan and Uzbekistan have agreed upon the construction and commissioning of the Shymkent-Jizzak main pipeline with the annual capacity of 5 million tons by 2021, Kazinform refers to the Framework Agreement On Certain Issues of Energy Cooperation between the governments of Kazakhstan and Uzbekistan.

The two countries agreed upon the possible timeframes and amounts of oil transported to Uzbekistan through the territory of Kazakhstan: up to 0.2 million tons in 2017; up to 1 million tons per year in 2018-2020; up to 5 million tons since 2021.

As it is explained, the designing, financing, construction, and operation of the Shymkent-Jizzakh oil pipeline will be conducted by the authorized organizations of each of the countries in compliance with these organizations’ terms. Besides, the parties agree to provide their authorized organizations with the necessary powers, permits, and licenses for the designing, construction, and operation of the Shymkent-Jizzak oil pipeline.

The Uzbek party expresses interest in supplying Kazakh oil up to 2 million tons a year for needs of the Jizzakh refinery. In addition, the Kazakh party, under the national law, will assist in supplying up to 2 million tons of Kazakhstani oil per year, if it is economically feasible for the economic entities of the Republic of Kazakhstan.

The parties support annual delivery of up to 1 million tons of oil produced in Russia through Kazakhstan’s Shagyr oil loading point and then by rail to Uzbekistan. Also, both countries support the need to develop the oil transportation infrastructure so that to ensure the supply of up to 5 million tons of Russian and Kazakh oil per annum to Uzbekistan through the territory of Kazakhstan, and this includes the construction of the Shymkent-Jizzakh main pipeline.

In general, Kazakhstan is interested in supplying its oil products to Uzbekistan, according to the document. In exchange, the Uzbek party will ensure nondiscriminatory access to the territory of Uzbekistan and assist the Kazakh party in the marketing of Kazakhstan-made petroleum products in Uzbekistan and neighboring countries. At the same time, the states agreed to develop joint marketing of the oil products, obtained after the processing of Russian and Kazakh oil in the Uzbek refineries, including the Jizzakh refinery, in Uzbekistan’s domestic market and foreign sales markets; logistics of oil products to external markets, including via Kazakhstan’s logistics infrastructure.