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Iran and China to build Kazakhstan refinery

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Hydrocarbon Engineering,

According to local media reports, China and Iran are interested in constructing Kazakhstan’s oil refinery In Mangistau Oblast. Presently, the country has three refineries: in Pavlodar, Atyrau, and South Kazakhstan Oblast.

Rakymbek Amirzhanov, Vice Governor of Mangistau Oblast, confirmed the report, stating: “In Iran, all the oil refineries are located in the north of the country. All the oil fields are located in the south. Iran spends about US$35/t of oil to transport crude from the south to the north of the country”. As such Kazakhstan, geographically situated close to Iran’s north, is an appealing location for a new partnership in oil swaps.

Amirzhanov continued: “Iran is ready to take the remaining volumes through the ports of Aktau and Kuryk, and give its crude oil in the (Persian) Gulf region to Chinese companies. This is China's interest in the project of construction of the fourth Kazakhstani oil refinery.”

The refinery is planned to be able to produce high-octane gasoline and jet fuel, which Kazakhstan currently imports from Russia.

Investment in the construction of the project is anticipated to be US$6 billion.


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