27 Mar 2024 16:41

Kazakhstan expects nearly $2 bln from Russian oil transit to China

ASTANA. March 27 (Interfax) - The Majilis or lower house of Kazakhstan's parliament has ratified the protocol amending the agreement between Kazakhstan and Russia on transporting Russian oil through Kazakhstan to China dated December 24, 2013.

The protocol, signed in St. Petersburg on June 16, 2023, extends Rosneft's agreement with CNPC for 100 million tonnes of oil over 10 years. The pumping 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 through main pipelines from Russia to China via Kazakhstan (Tuymazy-Omsk-Novosibirsk-2 (TON-2) and Priirtyshsk-Atasu- Alashankou) until January 1, 2034.

"The agreement's extension will guarantee the oil supply to the Pavlodar Petrochemical Plant via the Omsk-Pavlodar pipeline. From 2024 to 2033. The projected revenue from transporting Russian oil through Kazakhstan to China is estimated at $1.71 billion for both sections, with no associated risks," Kazakh Energy Minister Almasadam Satkaliyev said.

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

The previous 10-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.