KazTransOil to invest $54.5 mln expanding TON-2 pipeline to increase Russian oil transit to China to 12.5 mln tonnes

ASTANA. Sept 2 (Interfax) - KazTransOil plans to invest 25 billion tenge or $54.5 million expanding the Tuymazy-Omsk-Novosibirsk-2 (TON-2) trunk pipeline to increase Russian oil transit to China from 10 million to 12.5 million tonnes annually, the Kazakh pipeline operator said during Issuer Day on the Kazakhstan Stock Exchange (KASE).

"The project is related to the expansion of the Kazakh section of the Tuymazy-Omsk-Novosibirsk-2 oil pipeline, which transports Russian oil to China. At present, 10 million tonnes are pumped along this route annually. The company plans to increase this by another 2.5 million tonnes," Amirzhan Ospanov, Deputy General Director of KazTransOil, said at the event.

A presentation during his speech said the company intends to build a new oil pumping station as part of these plans. Work is scheduled for 2026-2030. The preliminary cost is 25 billion tenge, to be financed by the company itself.

Kazakhstan and Russia signed a framework agreement in May to increase Russian oil supplies to China by 2.5 million tonnes to 12.5 million tonnes. Kazakhstan transports 10 million tonnes of Russian oil to China annually in accordance with the intergovernmental agreement to 2034.