China Eximbank pledges $1 billion USD to Kazakhstan for Phase I of the Shymkent Oil Refinery modernization project (Linked to Record ID#53576)

Project narrative

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 Record 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 Record ID#53576) was partially funded by a $607 million USD buyer's credit loan from China Development Bank (CDB).