Wednesday, August 08, 2012 -
The Atyrau oil refinery, a subsidiary of Kazakh state oil and gas firm KazMunaiGas (KMG), has signed a $297.5M deal with Japanese lenders to assist in its modernization, KMG said in a statement on Wednesday.
The Japan Bank for International Cooperation (JBIC) and the Bank of Tokyo Mistubishi UFJ will provide the funding, according to the agreement signed on Wednesday in the Japanese capital.
The funding will go towards the purchase of a fluid catalytic cracker (FCC) which will aid the Atyrau facility in minimizing its environmental impact in manufacturing petroleum products, JBIC noted.
The funding will increase production at the refinery to 2,400,000 tons of raw materials per year, KMG said in the statement. Overall production at the refinery will be increased by 85 percent once the project is completed in 2016.
In related news, South Korea’s Hyundai Engineering said on Wednesday it has been awarded a $900 million contract for the construction of a lube base oil facility in Shymkent.
The plant is expected to process 200,000 tons of lube base oil once it is in operation. A finishing date for the construction of the plant was not made available.
Kazakhstan’s prime minister announced on Tuesday a modernization project for the country’s three refineries in Pavlodar, Shymkent, and Atyrau.