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Uzbekistan ready to buy up to 2mn tonnes of Kazakh oil annually

20 February 2019 18:50

ASTANA. KAZINFORM Uzbekistan is ready to buy up to 2mn tonnes of Kazakh oil every year, according to Minister of Energy Kanat Bozumbayev, Kazinform reports.

"Kazakhstan supplied more than 260,000 tonnes of oil to Uzbekistan in 2018," said Bozumbayev while presenting the draft law "On ratification of the Framework Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on some issues of cooperation in energy sector" in the Majilis.

The Minister added that Kazakhstan was ready to further supply oil to Uzbekistan via Kenkiyak-Kumkol pipeline and then by rail tankers from Shagyr station.

According to the Minister, the cost of transportation via this route will be $25.12 per a tonne. As per the Uzbek side's request, Russia is now mulling the issue of oil delivery to Uzbekistan via Kazakhstan (up to 1mn tonnes). Trial deliveries through Kazakhstan were conducted in 2017 (68,000 tonnes) and in 2018 (about 36,000 tonnes), he added.

Besides, as the Minister pointed out, Uzbekistan is interested in acquisition of up to 5mn tonnes of oil per year in total, 2mn tonnes - from Kazakhstan and 3mn tonnes - from Russia.

"The possibility of supplying 5mn tonnes of Kazakh oil only is being considered too," he emphasized.

However, in his words, significant investments in transport infrastructure are required to ensure stable supply of 5mn tonnes of oil to Uzbekistan, namely:

- TON-2 pipeline should be expanded from the current 11mn tonnes to 17.5mn tones per annum and Trudovoye Oil Pumping Station should be reconstructed. Approximate amount of investments is $70.6mn.

- Increasing Kenkiyak-Atyrau oil pipeline capacity upon the project's commissioning (for transporting up to 8-12mn tonnes of oil from western Kazakhstan). Approximate amount of investments will make from $121.1mn to $162.5mn.

- Construction of a new pipeline running from the south of Kazakhstan to the border with Uzbekistan with the annual capacity of 5mn tonnes. Approximate investments will make $133.5mn.

NB: With the consideration of investments, oil transportation tariff from Kazakhstan to Uzbekistan can vary from $56.78 to $66.54 per a tonne, while for transporting Russian oil through Kazakhstan it may cost $38.1 per a tonne.

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