KMG to boost Caspi Bitum capacity 50% to 750,000 tonnes annually

ASTANA. Oct 17 (Interfax) - Kazakh state company KazMunayGas (KMG) has reached an agreement with Chinese CITIC to expand the capacity of the Caspi Bitum bitumen plant by 50%, bringing it up to 750,000 tonnes, KMG CEO Magzum Mirzagaliyev said.

"Annually, bitumen production stands at around 500,000 tonnes. In line with the president's request to boost bitumen production in Kazakhstan, we have signed an agreement with CITIC to increase it 50% and raise production from 500,000 tonnes to 750,000 tonnes," Mirzagaliyev said.

These agreements were reached after President Kassym-Jomart Tokayev met with Zhu Hexin, Chairman of CITIC Group Corporation, during the Kazakh President's visit to China.

"In May this year, CITIC Construction inked five agreements worth $2 billion with its Kazakh partners. One of the projects is the expansion of the Aktau bitumen plant, Caspi Bitum, to increase annual capacity to 1.5 million tonnes for oil refining. I was informed that a corresponding agreement had been signed between KazMunayGas and the CITIC group," President Tokayev said on Tuesday.

The idea of expanding Caspi Bitum's capacity first appeared in September 2022. During a meeting concerning petroleum product production and shipments at Caspi Bitum plants and the Atyrau Oil Refinery, a 50% increase in capacity was discussed. A preliminary feasibility study had already been conducted then, and specialists had started design work.

The Aktau bitumen plant is operated by the joint Kazakh-Chinese venture, JV Caspi Bitum LLP, which was founded by JV partners KazMunayGas JSC (50%) and CITIC Kazakhstan LLP (50%). It was established in 2013.