Kazakhstan has announced an extension of preferential terms for Russian companies utilizing its pipeline network to transport oil to China, a move aimed at bolstering its role as a key transit country for Russian energy exports to the Central Asian region.
This decision comes as Russia seeks alternative routes to compensate for lost sales to Europe following its invasion of Ukraine in 2022.
The Kazakh government has been actively promoting its pipeline infrastructure as a strategic conduit for Russian oil and natural gas shipments, capitalizing on its geographic position to facilitate energy trade between Russia and China.
Notably, Kazakhstan plays a significant role in supplying oil and gas to Western nations, leveraging its major oil developments such as Tengiz, Kashagan, and Karachaganak.
Under the amended agreement, originally signed in 2013, Russia will be able to transport approximately 73 million barrels of oil annually to China through Kazakhstan’s pipeline network, as the UpStream reports.
This network spans from Omsk in East Siberia to Pavlodar in Kazakhstan, with intermediate pumping stations at Atasu and Alashankou along the way, facilitating the seamless flow of oil to China.
According to reports, Kazakhstan has accrued substantial revenues amounting to $1.33 billion over the past decade from Russian oil transiting through its territory via this route.
The extension of preferential terms underscores Kazakhstan’s commitment to fostering robust energy partnerships with its neighbors while capitalizing on its strategic position as a key transit hub in the region.
