Kazakh pipelines boost oil shipments to China by 22%

Monday, 21 Jul 2008

Bloomberg reported that Kazakhstan's oil pipeline monopoly boosted shipments through its Atasu-Alashankou to China by 22% in the first half of this year as it sent more Kazakh and Russian crude to the world's second biggest energy user.

Kazakhstan's oil exports through the pipeline to China in the six months increased 512,000 tonnes from a year earlier to 2.807 million tonnes. Russia sent 465,000 tonnes to China through its Omsk-Pavlodar-Atasu-Alashankou link in the same period.

As per report, the 200,000 barrel per day Atasu-Alashankou pipeline was completed in December 2005 at a cost of USD 800 million. Russian crude oil is delivered to the pipe though a link from Omsk in Siberia. Russia sent oil to China through the pipeline for the first time in the first quarter, when it allowed OAO Gazprom Neft and BP Plc's Russian venture TNK-BP each to ship 150,000 tonnes.

The company said state run KazTransOil's crude shipments through the Atyrau-Samara pipeline rose by 161,000 tonnes from a year earlier to 8.135 million tonnes in the first half. It sent 5.82 million tonnes to Kazakhstan's three refineries increase of 398,000 tonnes. It said the company crude oil loading to rail cars increased by 336,000 tonnes to 2.24 million tonnes in the period. China is second only to the US in energy consumption.