Kazakhstan, CNPC discuss expanding capacity of Shymkent refinery, Beineu-Shymkent gas pipeline
ASTANA. March 3 (Interfax) - The Kazakh Energy Ministry and China National Petroleum Corporation (CNPC) have discussed key projects in the oil and gas sector, the ministry's press service said.
Kazakh Deputy Energy Minister Yerlan Akkenzhenov and representatives from CNPC, KazMunayGas and QazaqGaz took part in the meeting.
"The parties discussed current cooperation, paying special attention to a number of strategically important projects. In particular, they addressed the expansion of the Shymkent Oil Refinery, one of the key projects for increasing oil refining in Kazakhstan; the Carbamide project, which is of great significance for the development of the petrochemical industry, as well as the construction of the second line of the Beineu-Bozoy-Shymkent gas pipeline, which will significantly increase the capacity of the country's gas transportation system," the press service said.
The parties also reviewed contract extensions for Mangistaumunaigas and Urikhtau, as well as the supply and transportation of natural gas.
"The implementation of these projects is of strategic importance for the further development of Kazakhstan's oil and gas industry. We highly value our cooperation with Chinese partners and are confident that we can achieve our set goals through joint efforts," Akkenzhenov was quoted as saying.
Following the discussions, both sides committed to continue their collaborative efforts, conduct further technical consultations and coordinate the next steps to ensure the projects' implementation.
CNPC, one of the world's largest oil companies, has invested over $45 billion in Kazakhstan's oil and gas industry. Its operations in the country employ more than 30,000 people, with 98.3% being local Kazakh workers.
The expansion of the Shymkent Oil Refinery aims to double its annual capacity from 6 million to 12 million tonnes. Once completed by 2030, the project is expected to produce an additional 700,000 tonnes of gasoline, 700,000 tonnes of aviation fuel and 3.9 million tonnes of diesel fuel annually. Originally built in 1985, the refinery is jointly owned by KazMunayGas and CNPC, which each hold a 50% stake.
The Beineu-Bozoy-Shymkent pipeline is one of the largest pipeline projects in Kazakhstan, passing through the Mangystau, Aktobe, Kyzylorda and Turkestan regions. The first phase of constructing the second branch of the gas pipeline is currently underway.
The Carbamide project will be implemented at the Zhanazhol Gas Processing Plant. Carbamide is a nitrogen fertilizer which is in high demand. The country's nitrogen fertilizer demand is estimated at 350,000-400,000 tonnes per year. KazMunayGas and CNPC signed an agreement to deepen cooperation in producing carbamide and other products in July 2024. The expected production capacity is up to 1.2 million tonnes of carbamide per year, with the project's cost estimated at around $1.5 billion.
