KazTransOil boosts Russian oil transit to China 4.6% in Q1

ASTANA. April 9 (Interfax) - KazTransOil (KTO) pumped 2.507 million tonnes of Russia oil through Kazakhstan to China in January-March 2024, the company said in a press release.

This is an increase of 4.6% compared with the first quarter of the previous year, when the volume of Russian oil transported through Kazakhstan to China totaled 2.396 million tonnes.

Kazakhstan delivered 9.989 million tonnes of Russian oil to China in 2023.

KazTransOil has been transporting Russian oil through Kazakhstan to China since 2014 under the agreement that the governments of Kazakhstan and Russia signed on December 24, 2013.

KazTransOil pumped 91 million tonnes of Russian oil through Kazakhstan to China in 2014-2023.

In June 2024, the energy ministers of Kazakhstan and Russia extended the inter-governmental agreements on Russian oil transit through Kazakhstan, with an increase in volumes up to 10 million tonnes until 2034.

Kazakh Energy Minister Almasadam Satkaliyev said earlier that Kazakhstan expected to receive $1.7 billion from Russian oil transit in 2024-2030.

The pumping tariff was 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 Atasu-Alashankou oil pipeline, part of the Kazakhstan-China oil transportation system, is owned by Kazakhstan-China Pipeline LLP, which is a joint venture between KazTransOil JSC (50%) and China National Oil and Gas Exploration and Development Company Ltd. (50%). The throughput capacity of the Atasu-Alashankou pipeline is 20 million tonnes of oil a year.

KazTransOil, part of National Company KazMunayGas, is the national operator of oil pipelines in Kazakhstan. The company owns and operates oil pipelines of about 5,400 km in length.