Photo: KazMunayGas
ASTANA, Kazakhstan, February 27. KazMunayGas (KMG) Chairman Askhat Khassenov and Chen Huailong, President of China National Oil and Gas Exploration and Development Company (CNODC), which is a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), discussed key areas of cooperation, Trend reports via KMG.
The parties reviewed the progress of joint strategic projects. In particular, they discussed plans to expand the production capacity of the Shymkent Oil Refinery from the current 6 million tons to 12 million tons per year. The investment project is of strategic importance amid growing domestic demand for petroleum products in Kazakhstan.
A feasibility study for the expansion is currently under development. The head of KMG stressed the importance of adhering to the project’s implementation schedule.
The sides also discussed the construction of a gas chemical complex in the Aktobe region, designed to produce up to 880,000 tons of urea and up to 80,000 tons of methanol annually. The urea project is expected to play a significant role in advancing agriculture and strengthening the country’s food security. Total investment is estimated at $1.25 billion.
The parties are finalizing procedures to establish a joint venture, after which they will proceed to Front-End Engineering Design (FEED). A feasibility study for the project has already been completed.
The Shymkent oil refinery, built in 1985, is the most recent refinery in Kazakhstan. On January 27, 2005, the refinery was officially registered as a legal entity under the name PetroKazakhstan Oil Products. In October of the same year, CNPC International Ltd. (CNPCI), a subsidiary of China National Petroleum Corporation (CNPC), acquired PetroKazakhstan Inc. In 2007, the Shymkent refinery gained a new shareholder, with the national company KazMunayGas acquiring a 50% ownership stake. The refinery accounts for approximately 30% of the country’s total oil products, produced across three refineries.
