China Eximbank pledges $1 billion USD to Kazakhstan for Phase I of the Shymkent Oil Refinery modernization project (Linked to Project ID#53576)
Adjusted pledged amount
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Industry, mining, construction (Code: 320)
Level of public liability
Potential public sector debt
During the state visit of President Nursultan Nazarbayev to China during May 19-21, 2014, the Export-Import Bank of China and the Development Bank of Kazakhstan JSC (DBK) signed a memorandum of understanding (MoU) to provide $1 billion USD on preferential terms for the reconstruction and modernization of PetroKazakhstan Oil Products LLP (PKOP)'s Shymkent Oil Refinery. It is unclear whether China Eximbank ever provided funds for the project. Sberbank of Russia provided a $400 million USD loan for the project. The Shymkent Refinery, one of the three largest refineries in Kazakhstan, was built in the 1970s. Its age was showing in lower quality and quantity products. The first phase was focused on raising the fuel standards of the refinery. Prior to the completion of this project, Kazakhstan had to import 800,000 tons to 1 million tons of high-grade fuel oil; the project would allow the refinery to produce high-quality fuels and help Kazakhstan become an exporter. Upon completion, the refinery would the first enterprise in Kazakhstan capable of production Euro-4 and Euro-5 refined oil products. The first phase included the construction of a sulphur production unit with a capacity of 4,000 tons per a year, a a diesel fuel hydro-treating system, a pressurized bulk-filling plant for light oil products, and additional facilities for the factory. It also included an naphtha isomerization unit. Alongside phase 2 (captured by linked project ID#53576), the factory was designed to more environmentally friendly. The general contractor was China Petroleum Engineering and Construction Corporation (CPECC). Rominserv provided consultancy on the project. The first phase of the modernization was expected to be complete in 2016. The first phase of the refinery's modernization began in January 2014. The refinery was put into operation on June 30, 2017. The shareholders of PetroKazakhstan Oil Products LLP were CNPC Exploration and Development Company Ltd. (50%) and JSC Exploration & Production KazMunayGas (50%). CNPC Exploration and Development Company Ltd. was a subsidiary of PetroChina Company Ltd. and a 50/50 joint venture between PetroChina and CNODC. JSC Exploration & Production KazMunaiGas (EP KMG) was engaged into production of crude oil at the oil fields in western and southern Kazakhstan, and was a subsidiary of JSC National Company KazMunayGas. The Phase II of the Shymkent Oil Refinery modernization project (captured by project ID#53576) was partially funded by a $607 million USD buyer's credit loan from China Development Bank (CDB).
The Chinese name of this project is 哈萨克斯坦奇姆肯特炼厂一期. Some sources call this a "loan agreement," but DBK specifically states that it was an MoU. It is not clear if a formal loan agreement was signed, hence "Pipeline: Pledge."
Number of official sources
Number of total sources
Direct receiving agencies [Type]
PetroKazakhstan Oil Products LLP (PKOP) [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
China Petroleum Engineering & Construction Corporation (CPECC) [State-owned Company]
Development Bank of Kazakhstan JSC (DBK) [State-owned Bank]
Rominserv [State-owned Company]