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Pavlodar-based oil refinery lowering its earlier announced capabilities

30 july 2013, 21:00
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Pavlodar-based oil refinery. ©munaigaz.kz
Pavlodar-based oil refinery. ©munaigaz.kz
Upon completion of the overhaul, the Pavlodar-based oil refinery will diminish its earlier announced capabilities, a Tengrinews.kz journalist reports. Instead of the earlier expected 7.5 million tons a year, the refinery will only be processing 7 million, Shukhrat Danbai, Director of the facility, said at a press-conference.

“The oil refinery was supposed to handle 7.5 million tons of oil coming from the West Siberia of Russia. After the task was set to have the facility equipped to handle Kazakhstan’s oil, the figure was cut down to 7 million. It means the facility will be able to process 7 million tons of oil coming from the West Siberia of Russia or 5 260 million tons of Kazakh oil. The facility will be able both to handle blends of Russian and Kazakh crude and each of the two separately”, he said.

The project to modernize the oil refinery is estimated at $1.07 billion. The Company plans to spend about $300 million to purchase equipment this year. Following the modernization, in 2016 the facility is to start producing petrol in line with the Euro-4 emission standards. The current processing capabilities stand at 5 million tons.

Overhaul of the current three Kazakhstan-based oil refineries will enable to meet the domestic demand for petrol before 2030, KazTag Agency reported in August 2012, citing KazMunaiGas (KMG) Chairman of Board of Directors Daniyar Tiyessov.

Late October 2011 Ms. Sholpan Khaidargaliyeva, Director for Petrochemistry Department of the country’s Oil and Gas Ministry, said that Kazakhstan-based three refineries [in Pavlodar, Atyrau and Shymkent] process a total of 13-14 million tons of oil a year. Following the planned overhaul of the three facilities, the overall volume of processed crude will stand at over 17 million tons.

Late July 2012 Tengrinews.kz reported that investment companies of China, Slovenia and Kazakhstan plan to jointly construct an oil refinery in the north of Kazakhstan. The project will be implemented within the state-run program of oil refineries development in 2009-2015. The facility is to be constructed in the town of Bulayevo. At the initial stage the facility will be capable of handling up to 5 million tons of oil a year. The investments are estimated at $2 billion. In future, the processing capacities can be brought up to 10 million tons a year.

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