Petrochemistry and oil refining projects
Reconstruction of vacuum unit ELOU-ABT and a delayed Coker unit at Atyrau refinery
The project is under construction, In terms of reconstruction of 2 existing vacuum units ELOU-ABT and delayed Coker unit, it is intended to increase ELOU-ABT -3 vacuum block capacity from 1600 thousand to 1800 thousand tenge per year and to increase delayed Coker unit’s capacity from 700 thousand to 1000 thousand tenge per year, and increase of vacuum gasoil production volumes.
The date of the construction completion is 2010..
Construction of Aromatics production plant at Atyrau refinery
The state expertise developed and approved of the feasibility study and design and estimate documentation .The feasibility study and design and estimate documentation are implemented on the basis of the licensor technologies (Axens France). The construction sites are prepared.
On October 29, 2009, they signed the turnkey construction contract with the strategic partner Sinopec Engineering (China). The organization of construction process is under way.
The project’s implementation will enable to increase the volume of high-octane motor fuels, improve the quality of fuel to EURO-3 standards and organize production of benzol and paraxylene as basic petroleum raw fro petrochemical industry of RK.
Construction will be finished in 2013.
Oil deep conversion complex construction at Atyrau refinery
Design estimates and feasibility study of the project developed on the basis of the licensor’s (Axens, France processes technology are developed and approved by the State expertise). There were held public hearing concerning assessment of expected effect on the environment. The project feasibility study is developed by «IC «Kazgiproneftetrans» Ltd and «Axens».
«Omskneftchimproekt» JSC is developing design estimates.
The project implementation will allow to increase balanced oil refinery production volume to 5,0 million tons per year, increase development of light petroleum products, oil conversion depth to 86%, improve the quality of motor fuels to EURO-4 standards.
The construction completion date is 2014.
Reconstruction and modernization of «PetroKazakhstan Oil Products» refinery
Honeywell – UOP (the YSA) developed a feasibility study of the project.
Reconstruction and modernization of «PetroKazakhstan Oil» refinery involves recovery of the expected refining capacity to 6 million tons per year, increase of development of light petroleum products, increase of oil conversion depth to 90 %, upgrading motor fuels quality to EURO-4 standards.
The construction completion date 2014.
Reconstruction and modernization of «PetroKazakhstan OilProducts» refinery has a strategic importance for the country as it will ensure energy security in densely-populated southern region of Kazakhstan.
Modernization and reconstruction of Pavlodar refinery
«KazMunayGas» JSC and Italian Company «Eni s.p.a.» signed Memorandum on cooperation and understanding concerning investments in oil and gas exploration and in industrial infrastructure objects in the Republic of Kazakhstan. The framework of Memorandum involved development Program for «Pavlodar» refinery for 2010-2014. They are developing preliminary design estimates, detailed design estimates and general plan of the plant modernization.
It is planned to recover the designed capacity of the plant to 7,5 million tons per year, increase development of light petroleum products and increase of oil conversion depth to 90%, upgrading motor fuels to EURO-4 standards.
The construction completion date is 2014.
Paving bitumen production at Aktau plant of plastic masses
In 2009, NC «KazMunaiGas2 JSC will purchase 50% share portfolio of «Kazakhstan Petrochemical Industries» (hereinafter –KPI JSC) from «SAT&Company» Ltd. whose assets include Atyrau plant of plastic masses. In 2009, «CITIC Group» ( China) and KPI JSC signed an Agreement on underlying principles of creation and participation in the joint venture with a view of construction and management of bitumen plant.
Joint-Venture «CASPI BITUM» Ltd (Aktau) has undergone a state registration. The founders of the company are KPI JSC and «CITIC Kazakhstan» (subsidiary of «CITIC Group»). Now they are organizing the projects’ funding and choosing general contractor.
The project implementation will enable annual production of 420 thousand tons of paving bitumen complying with climate conditions of Kazakhstan
The project completion date is 2011.
Kazakhstan-China pipeline construction
Kazakhstan-China pipeline construction project is implemented in accordance with the Agreement between the Government of Kazakhstan and the Government of People’s Republic of China on cooperation in construction and exploitation of Kazakhstan-China pipeline of 18.08.2007.
The project is aimed at the transit of Turkmen gas via the territory of Uzbekistan and Kazakhstan to China, and export of Kazakhstan gas which will enable to diversify export routes and provide southern regions with their own gas, thus increasing energy security of the country.
Construction of the first section of «Kazakhstan-China» pipeline is implemented by Consultant Engineering Company «Asian gas pipeline» Ltd, established on February 15 2008, on the Parity basis by «KazTransGas» JSC and Trans-Asia Gas pipeline Limited (affiliated company CNPC.
The construction of the pipeline started on July 9, 2008. The first phase was completed ahead of schedule, in record-breaking time. More than 4 thousand people were involved in the construction.
On December 12, 2009 President of Kazakhstan Nursultan Nazarbayev and Head of People’s republic of China Hu Jintao launched the first line of the First section of the main pipeline Kazakhstan-China, whose length is 1308 km.
By the end of the year 2012 the flow capacity of the gas pipeline is planned to be increased to 30 bln cubic meters a year. Further development of the gas pipeline to 40 bln cubic meters a year will take place as part of the "Construction of the 'Beineu – Shymkent’ gas main» project.
Construction of the second section of the Kazakhstan-China gas pipeline (Beineu – Shymkent)
The Beineu - Shymkent gas main construction project is implemented to serve a stable source of gas supply to the southern regions of Kazakhstan, exclude reliance on imported gas and to ensure power stability and security of the country, as is pointed out in N. Nazarbayev Address to the People of the Republic of Kazakhstan on 06/02/2008.
The route of the gas pipeline goes through the territory of Mangystau, Aktyubinsk, Kyzylorda and South-Kazakhstan regions and has the following main technical specifications: annual throughput – 5 bln cubic meters (within the years 2010 - 2013), 10 bln cubic meters ( in the 2014-2019 years ), total length - 1487 km, diameter 1000mm (1 line). The consortium of design institutes JSC KING – limited partnership KATEK, contracted on the funds assigned from the republican budget, completed development of the project documentation and budget estimate («Project» stage) which received approval ( no. 01-377/09 , 14/08/2009) from the project leading team «Gosekspertiza».
The following agreements were signed for successful execution of the projects:
- On April, 16, 2009 in the course of the state visit of the Head of State N. Nazarbayev to the People's Republic of China a general agreement between JSC NK KazMunayGas ( further - KMG ) and the Chinese National Oil and Gas Corporation ( further – CNOC) was signed. The sides agree to extend co-operation in the oil and gas industry sector; the Chinese side agreed to aid in obtaining a loan of 5 bln USD, of which 3 bln USD is set aside for the gas pipeline «Beineu – Shymkent» construction project;
- On October, 14, 2009, Protocol for the Interstate Agreement «Making Amendments to the Agreement between the Governments of the Republic of Kazakhstan and the People’s Republic of China for co-operation in construction and operation of the Kazakhstan-China gas pipeline of August 18, 2007» in which the Sides undertook to form the capital of the created joint venture, each side's contribution set to 500 million USD as a single contribution;
- A protocol of a meeting between the representatives of KMG and CNOC detailing terms of formation of the venture on October, 14 , 2009;
- A Memorandum of Understanding regarding financing of the second leg of the gas pipeline Kazakhstan – China between KMG and CNPC;
- Agreement on the main principles for financing, construction and operation of the second leg of the gas pipeline Kazakhstan-China between the JSC "National Company KazMunaiGaz" and the Chinese National Oil and Gas Corporation on June 12, 2010.
This project is scheduled to commence in 2010.
The 5-th meeting of Kazakhstan-Indian inter-governmental commission on trade –economic, scientific and technical, industrial and cultural agreement which took place on February 18, 2005, resulted in signing of Memorandum of Understanding between NC «KazMunayGas» JSC and Indian company «ONGC Videsh Limited» in the sphere of exploration and development of the Caspian sea shelf.
Following the Memorandum with «ONGC Videsh Limited», they held joint exploration work which defined «Satpayev» field as the most prospective for further joint activity.
«Satpayev» field is located in the Northern part of Kazakhstan sector of the Caspian sea, 90 km away from the coast.
On January 2009, during the RoK President’s visit to India, «KazMunayGas» and Indian company «OMEL» signed an Agreement on principle s of cooperation at «Satpayev» field. The Agreement covered the main commercial terms of future implementation of «Satpayev» project.
Also in 2009, «KazMunayGas» held direct negotiations with Ministry of Energy and Mineral resources of the RoK (the MEMR) which resulted in MEMR’s decided to grant the right for subsoil management of the Satpayev field to KazMunayGas on the terms of exploration and production.
In June 2010, Ministry of oil and gas of RK and KMG signed an Agreement on exploration and production at the Satpayev field (of June 2010, N 3575)
At the same time NC «KazMunayGas» JSC is holding commercial negotiations with the Indian party on approval of the package of documents on the deal which consists in concession of 25% share in the Satpayev project to the Indian Party and creation of an operating company of the project.
In terms of the above Memorandum the parties signed a number of agreements, which brought about joint exploration of geological and geophysical properties in order to define potential productiveness of «Darkhan» site.
By now, the Parties have discussed main commercial, technical and economic conditions of the project implementation and working at the Draft of Agreement on cooperation principles on «Darkhan» project