Iran, China to Jointly Build Kazakhstan's Refinery: Report
- October, 18, 2015 - 11:27
- Economy news
TEHRAN (Tasnim) – Iran and China plan to jointly construct the fourth oil refinery of Kazakhstan, a report said.
The refinery will be built in Mangistau Oblast - the country's west - in cooperation with Iran and China, Kazakhstan's Tengrinews reported on Saturday.
Vice-Governor of Mangistau Oblast Rakymbek Amirzhanov confirmed that representatives of Iran and China had proposed to take part in the construction.
"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 $35 per ton of oil to transport crude from the south to the north of the country," Amirzhanov said.
He said, therefore, Kazakhstan which is situated close to Iran’s north is a good candidate for a new partnership in oil swaps.
The new refinery will be able to produce high-octane gasoline and jet fuel that Kazakhstan currently imports from Russia, and thus close the existing deficit in the country, he said.
“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," Amirzhanov explained.
Currently, Kazakhstan has three oil refineries, in Pavlodar, Atyrau and South Kazakhstan Oblasts. However, according to Amirzhanov, they do not fulfil Kazakhstan’s needs for petroleum products - the country’s deficit is about 1,5 million tons of oil, which constitutes 30 percent of the total market.