Sanctions of Western states in respect of Russia may lower export of Kazakhstani oil - Karabalin

Date: 08:22, 07-04-2014.

Astana. April 7 KazTAG - Economic sanctions in respect of Russia may lower oil export from Kazakhstan, said Uzakbay Karabalin, Minister of Oil and Gas.

"We don't know which sanctions (of Europe in respect of Russia-KazTAG) may be, but we will face export difficulties. If export volumes are limited, basically it may happen on the Russian line. In this case, export flows will decrease," he said.

In his words different options for alternative export ways are being considered.

"It is strengthening of direction through the Caspian Sea, through Azerbaijan, Georgia, to the Black Sea, there is Batumi port. Aktau port provides up to 12 mln tons of export. We are carefully watching warming in respect of Iran. If the sanctions in respect of Iran are cancelled we have an export way. It used to be a good direction for us until Iran introduced tough conditions," he said.

In his words, China is an important route.

"We have a pipeline Atasu-Alashankou 20 mln tons in capacity. From Atyrau, from western regions the capacities are not so big, they make up 12 mln tons between Kenkiyak and Kumkol, then 2.6 mln tons. We have a program, we will boost this direction within two years, in order to pump 20 mln tons to China," he said.

In his words, Uzbekistan and Turkmenistan also need oil.

"There may be some difficulties if Russian export is limited, probably big flows will come to us. It is good from one side as we will have full supply of oil products increasing the indicative balance we have signed. From another side overstocking of market, if the products are cheap, will complicate the work of our refineries," he said.

 

 

 

 

 

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