China’s National Oil and Gas Exploration and Development Corporation (CNODC) has continued filing lawsuits in Kazakh courts seeking to invalidate an April 8, 2025, order by the Ministry of Energy that revised tariffs for transporting Russian oil through Kazakhstan to China. The development was disclosed in financial statements from KazTransOil, the national pipeline operator and a subsidiary of KazMunayGas.
Joint pipeline operations at issue
Kazakhstan-China Pipeline (KCP), a joint venture equally owned by KazTransOil and CNODC, operates the Atasu-Alashankou and Kenkiyak-Kumkol oil pipelines.
Tariff changes and key routes
The order set a tariff of $7.76 per ton, excluding VAT, for the Atasu-Alashankou section, down from $10.77 per ton. For the Priirtyshsk-Atasu section, the tariff was set at $7.24 per ton, up from $4.23 per ton.
The revised rates took effect May 1, 2025, along the route from the Russian border (Priirtyshsk) through Atasu in Kazakhstan to Alashankou in China.
Dispute over financial impact
Energy analyst Nurlan Zhumagulov, author of the Energy Monitor Telegram channel, said the tariff revision resulted in revenue losses for the Chinese partner, despite the overall transportation cost through Kazakhstan remaining about $15 per ton.
While KazTransOil controls the Priirtyshsk-Atasu section, the Atasu-Alashankou segment is operated by KCP.
«As a result of tariff adjustments tied to the transit of 10 million tons of Russian oil, the joint venture [KCP] loses about $30 million annually, including roughly $15 million attributable to CNODC,» Zhumagulov said. «This approach was unlikely to satisfy the Chinese investor.»
Read also: Kazakhstan sends Kashagan oil to China amid CPC issues.
