View Full Version : Kazakhstan to pipe 4.5 mln tons of oil to China

24-04-06, 09:30

Kazakh crude flowing through the landmark Kazakh-China pipeline is set to reach China in about a week, to supply 4.5 million ton this year to the world's number-two oil user, a Chinese industry official said.

The new supply, equivalent to about 4 percent of China's total crude oil imports last year, is part of Beijing's plan to boost supply security by raising imports under long-term deals with major suppliers and reduce purchases from the red-hot spot market.

"It will start feeding the refineries in May," said an official from state-run China National Petroleum Corp. (CNPC) from Beijing.

The supply rate matches industry expectations that the $800 million, 965-kilometer pipeline would be running at about half its designed capacity of 10 million ton a year (200,000 barrels per day) in 2006 and operate at full tilt by end-2007.

On a daily basis, the pipeline will carry 137,000 barrels of oil to Chinese refineries from May, or about 2.3 percent of China's current total refinery production.

Most of the new oil will be pumped from CNPC-operated oilfields in the neighboring central Asian country. These include the Aktobe field in the northwest, which CNPC acquired over several years and the Kumkol fields that the CNPC recently bought from Canada's PetroKazakhstan.

The Kazakh-China pipeline ends at the Chinese border town of Alashanko in the Xinjiang Uighur Autonomous Region, from where CNPC has laid a 252-kilometer pipeline to carry oil to its Dushanzi refinery, now under expansion to take more Kazakh crude. China has been importing Kazakh oil by trains, with imports in 2005 recorded at 26,000 bpd by official customs data.