Kazakhstan, China Sign Agreement On Refinery Modernization

The Petro Kazakhstan Oil Products company, which manages a refinery in the Kazakh city of Shymkent, and China Petroleum Engineering & Construction (CPECC) in Beijing have signed an additional agreement to the “turnkey” contract for the implementation of the second phase of reconstruction and modernization of the plant, the KazMunaiGas - Processing and Marketing company, which is one of the shareholders of the refinery, said Nov.27.

The document defines the fixed price of the contract on the basis of the positive conclusion of state expertise regarding the design and estimate documentation of the project obtained by the Petro Kazakhstan Oil Products.

The project of reconstruction of one of the three largest oil refineries in Kazakhstan is aimed at increasing the processing capacity of the plant from 5.25 million tons to 6 million tons, as well as increasing manufacture of light oil products from 61 percent to 89 percent, bringing quality of the products to Euro-3 standard. (Cihan/Trendaz)