By producing crude oil and a wide range of oil products, PetroKazakhstan is able to sell its products both in Kazakhstan and abroad. Kumkol oil commands a good price on the world markets, and meets Brent oil quality criteria.
Since July 2006, with commissioning of Kazakhstan-China Pipeline (KCP) Atasu – Alashankou, PetroKazakhstan’s crude oil has been supplied to China. Currently, KCP is the most economically expedient transportation route. In 2009 the volume of 2.7 million tons of crude oil per year was supplied to China via the KCP system, which is almost 100% of the company’s total oil exports. In H1 2010 using the KCP there was supplied 1.5 million tons of oil, which is by 13% more than in a respective period of 2009.
The Company also has access to the JSC KazTransOil East pipeline system, which it uses to transport oil to PKOP, the Shymkent Oil Refinery for refining. The Company refines about 2 million tons of crude oil per year at the Shymkent Oil Refinery and then sells its products such as gasoline, diesel fuel, reduced fuel oil, jet fuel, vacuum gas oil and liquefied petroleum gas (LPG). Every year the Shymkent Oil Refinery ships approximately 4 million tons of refined products both in Kazakhstan and overseas. LPG is supplied from the Shymkent Oil Refinery and Akshabulak field to the countries of Central Asia, East and West Europe and to the domestic market.
The main marketing priority for oil products is the domestic market, namely the country’s most densely populated areas such as the South Kazakhstan, Zhambyl, Almaty, Kyzylorda, Karaganda Oblasts and the cities of Almaty and Astana, which is 70% of the total oil product sales volumes. The Company either owns or leases in excess of 2,240 rail tank cars.
Large and small fueling stations and fueling station networks, airports, power and gas companies, factories, transport organizations, and farming businesses are the main consumers of company’s oil products on domestic market. Vacuum gas oil is largely sold for export to oil refineries, while liquefied gas is sold for household purposes and for the petrochemical industry. Vacuum gas oil is exported mainly to Eastern Europe, while liquefied gas is sold to Central Asian countries.