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.
