Gazprom Neft Acquires Bitumen Production Facility in Kazakhstan

January 25, 2013

Gazprom Neft has acquired Bitumen Plant LLP, a new bitumen production facility with an annual capacity of  280,000 tonnes, located near Shymkent, in Southern Kazakhstan.

Bitumen Plant LLP is one of the leading producers of bitumen in Kazakhstan. The plant came on line in 2011 and comprises a new processing facility which produces a wide range of bitumen products. The facility includes blowing towers and a feedstock storage unit, as well as all necessary transportation infrastructure, including rail links and truck and rail loading platforms. One of the plant's key competitive advantages is its close proximity to the Western Russia – Western China transit route.

Bitumen products at Gazprom Neft's new plant will be made from Russian raw materials, such as tar from the Omsk Oil Refinery  . The complex's location enables it to supply Kazakhstan's road-building entities with high-quality bitumen products, the efficiency of which is greatly affected by distance and transportation conditions. The bitumen that was previously exported from the Omsk Oil Refinery to Kazakhstan and other Central Asian countries will now be used to meet the growing demand for this product within Russia.

Anatoly Cherner, Gazprom Neft's Deputy CEO for logistics, refining and distribution commented: "The production and sale of bitumen products is an important area for Gazprom Neft. The acquisition of a new production facility outside of Russia will enable the company to take another step in developing this segment. The Kazakh market has significant potential, with demand for bitumen products predicted to increase by 1.5 times in the next few years. The high quality of the plant's output, combined with its logistical advantages, will enable Gazprom Neft to capture up to 20% of Kazakhstan's market for bitumen materials and to strengthen its position in Central Asia."

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