China’s is ready to finance Kazakh's cleaner fuel upgrades while CNPC brings an Iraqi plant onstream.
Kazakhstan’s state-owned oil and gas unit KazMunaiGas has secured a $1.13 billion loan to complete a series of upgrades at its Atryau plant from China's Import-Export Bank.
The loan, which will be repayable over 13.5 years, will be used to build a new facility capable of processing 2.4 million tons of fuel oil and vacuum gas oil per year. According to Talgat Baitaziyev, “the new complex will allow Atryau to increase production of high-octane gasoline, jet fuel and diesel that will meet Euro-5 standards.”
The loan will also strengthen ties between the two nations. Last year, trade turnover between the countries reached $25 billion and made up around 18% of Kazakhstan’s total export revenues. Around 20% of the ex-Soviet nation’s oil and gas exports are bound for China.
Over the years, Kazakhstan has secured around $15 billion in Chinese investments and is estimated to hold 3% of the world’s recoverable oil reserves. Located in western Kazakhstan, Atryau is the country’s oldest refinery.
Meanwhile, in the Middle East, China National Petroleum Corp (CNPC) has begun the job of bringing Iraq's Halfaya Oilfield onstream with the opening of Phase One of the project. Halfaya is the largest overseas investment made to date by China's largest crude producer and initial annual capacity is scheduled at five million tons. A further 10 million will be available on completion of the second Phase of the project.