A single network tariff is planned for introduction on the Kazakhstani-Chinese oil pipeline

Almaty. February 19. Silkroadnews - A single network tariff is planned for introduction on the Kazakhstani-Chinese oil pipeline to reduce the oil transportation costs, the information on the performance results of the Kazakhstani Ministry of Energy (ME) for 2015 and tasks for 2016 reports, KazTAG says.
“Following the meeting of Minister of Energy of the Republic of Kazakhstan V. Shkolnik and Vice President at China National Petroleum Corporation Wang Dongjin in 2015 it was decided to establish a task group to work over the increase of Kazakhstani oil deliveries to China, including the price formula adjustment on Alashankou. On October 15, 2015, the first meeting of the task group on the increase of Kazakhstan-China pipeline capacity was hold with the participation of representatives of JSC “KazTransOil”, JSC “NWTC “MunaiTas”” (North-West Transportation Company), LLP “Kazakhstani-Chinese Pipeline” and representatives of the Chinese side,” - the document stated.
    “At present the task group is working over the adjustment of the resource base, expansion of Kazakhstan-China pipeline and coordination of the price formula for oil at the border of the Republic of Kazakhstan and China, as well as the introduction of a single network tariff, which assumes the oil transportation costs reduction,” – the Ministry of Energy informs.
At the end of 2015 the volume of the oil transportation through the Kazakhstani-Chinese oil pipeline amounted to about 11.8 million tons (including 7 million of the Russian oil transit). The state expertize agency has given a positive conclusion on the extension of Kenkiyak-Atyrau and Kenkiyak-Kumkol oil pipelines. The projects implementation terms will be determined by the oil pipelines resource base.
    “According to the agreement between the governments of Kazakhstan and China “On the issues of cooperation under the development and operation of the “Kazakhstan-China” oil pipeline”, the pipeline download refers to the commitments of China. However, due to lack of the sufficient oil volumes to be exported to China the extension of Kazakhstan-China pipeline up to 20 million tons a year is suspended, as the Chinese side has not made the final investment decision on the pipeline facilities financing,” - the Ministry of Energy reported.