Energy Minister Yerlan Akkenzhenov announced that a mini-refinery in western Kazakhstan will process Russian crude oil and send 70% of the produced fuel to Russia, reports NUR.KZ correspondent. The statement was made at a government briefing where the minister discussed how Russia is addressing its current fuel shortage... reports infohub.kz.
According to Akkenzhenov, the Kondensat mini-refinery in western Kazakhstan will process Russian oil and supply 70% of the fuel to Russia. He explained: "The plant is in a sort of appendix and closer to Russia. There are no pipelines connecting the plant to Kazakhstan's or Russia's pipeline systems, and oil is delivered by rail. If I'm not mistaken, 50% of the company is owned by a Russian company. The Ministry of Energy received an official letter from the Russian Federation to supply the plant with Russian oil. I see no obstacles, as 30% of the produced gasoline and diesel will remain in Kazakhstan, and the rest will be exported to Russia (70% - ed.). There are no sanctions risks, as this company has not been included in sanctions lists."
The minister did not specify when and what volumes of fuel the plant will start producing, noting that it will depend on the capacity of rail transport. He added: "Today there is an agreement that up to 30% of the demanded petroleum products will remain in Kazakhstan - gasoline and diesel, and the rest will be sent to Russia. This is a normal condition. What are the benefits for us? These are additional investments in our country, preservation of jobs. Previously, the owner of JSC Kondensat had a large debt, about $100 million, if I'm not mistaken. A new owner came and practically paid off these debts. This is good - it works for our economy. What is important for me as Energy Minister is the production of high-quality petroleum products, ensuring the domestic market, and preserving jobs."