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Russia Seeks 10-Year Extension of Kazakhstan Oil Route to China Through 2033

The push reflects a bid to stabilize revenues by anchoring sales to China’s expanding energy needs.

Overview

  • Deputy Prime Minister Alexander Novak said Russia could extend an export deal via Kazakhstan to 2033 to boost crude flows to China.
  • Russia currently ships about 1.4 million barrels per day by sea to China plus roughly 900,000 barrels per day via pipelines transiting Kazakhstan.
  • Novak said Russia now supplies more than 20% of China’s total oil imports.
  • Kazakhstan is studying options to raise capacity on the AtasuAlashankou line by about 2.5 million barrels a year, including potential pumping upgrades or flow additives.
  • Reuters estimates Russia’s hydrocarbon takings are about 35% lower this month at roughly $6.63 billion, as Russian experts cast the strategy as providing long-term “energy security” to China.