Kazakh parliament ratifies protocol on Russian oil transit to China

ASTANA. May 2 (Interfax) - The Senate, the upper chamber of Kazakhstan's parliament, on Thursday adopted a law to ratify the protocol on amendments to the agreement between Kazakhstan and Russia on cooperation in the transportation of Russian oil through the Kazakhstan to China dated December 24, 2013.

The Protocol was endorsed on June 16, 2023 in St. Petersburg. Rosneft extended its previous agreement with Chinese national oil monopoly CNPC for the supply of 100 million tonnes of oil through January 1, 2034.

In Rosneft's agreement, the oil transportation tariff is set at $15 per tonne, with a $2.1 tariff on the Tuymazy-Omsk-Novosibirsk-2 (TON-2) pipeline section. This facilitates long-term oil transportation via main pipelines from Russia to China via Kazakhstan (the Tuymazy-Omsk-Novosibirsk-2 (TON-2) and Priirtyshsk-Atasu- Alashankou pipelines).

"The agreement extension will guarantee the oil supply to the Pavlodar Petrochemical Plant via the Omsk-Pavlodar pipeline. From 2024 through 2033, the projected revenue from transporting Russian oil through Kazakhstan to China is estimated at $1.710 billion for both sections, with no associated risks," Kazakhstan's Energy Minister Almasadam Satkaliyev said in March of this year.

Including replacement profits, revenue is estimated at $1.851 billion, the minister said.

The previous ten-year agreement, valid until January 1, 2024, saw 90.9 million tonnes of Russian oil transit through Kazakhstan to China, generating $1.327 billion in revenue.