Kazakhstan Increasing Oil and Gas Shipment to Uzbekistan and Ukraine

Kazakhstan Increasing Oil and Gas Shipment to Uzbekistan and Ukraine

Kazakhstan has entered into an agreement with Uzbekistan to increase its shipment of crude oil.

The country will export up to five million tonnes of crude oil per year to its neighbor and it will also sell its natural resource to Tajikistan and Russia.

Currently, Kazakhstan has three major oil refineries, which are located in Atyrau, Shymkent and Pavlodar.

Crude oil from the refineries will be sold abroad in order to prevent overstock of crude oil in the local market.

Kazakhstan produced 3.3 million tonnes of petroleum in January until November 2018, which is 27.3% higher compared to the same period in 2017.

Meanwhile, Ukraine is also increasing its import of liquefied gas from Kazakhstan. In 2018, the latter exported more than 200,000 tonnes of liquefied gas to Ukraine.

Analysts said that the gas supply has significantly contributed to preventing gas crisis in Ukraine.

Ukrainian Market of Petroleum Products analyst, Ivan Kudinov said the total trade turnover of the liquefied gas shipment reached nearly US$130 million.

“We expect that the volumes of Kazakh gas will rise in 2019. The Kazakh gas is of high quality and meets all European standard requirements,” he said, adding that majority of the gas are processed as car fuel. 

Photo: lada.kz