Kazakhstan-China Pipeline (KCP), which operates the Atasu-Alashankou and Kenkiyak-Kumkol oil pipelines, reported a 26% decline in net profit in 2025, according to its financial statements.
The company’s net profit fell to 27 billion tenge (approximately $52 million) from 36.5 billion tenge a year earlier. Revenue declined 13.3%, from 87.9 billion to 76.2 billion tenge.
KCP’s operating profit fell from 43.4 billion to 29.2 billion tenge. At the same time, financial income more than doubled to 6.4 billion tenge from 3.2 billion tenge a year earlier.
Dispute over oil transit tariffs
KCP is owned equally by KazTransOil, the national pipeline operator and a subsidiary of KazMunayGas, and China National Oil and Gas Exploration and Development Corp. (CNODC). Since 2025, CNODC has been challenging in court an order issued by Kazakhstan’s Ministry of Energy that changed tariffs for transporting 10 million tons of Russian oil through Kazakhstan to China.
Effective May 1, 2025, the tariff for the Atasu-Alashankou section was reduced to $7.76 per ton, excluding value-added tax, from $10.77.
Energy analyst Nurlan Zhumagulov said the tariff reduction could cost KCP approximately $30 million in annual revenue, with about $15 million of the loss attributable to its Chinese shareholder.
In July 2025, CNODC sought to have the Ministry of Energy’s order invalidated in court, but the lawsuit was dismissed. The company subsequently filed additional claims challenging the ministry’s actions.
In February 2026, the court partially upheld CNODC’s claims and ordered the Ministry of Energy to provide the company with documents related to the tariff revision.
Mediation talks continue
CNODC later filed another lawsuit seeking to overturn the Ministry of Energy’s order. KazTransOil and KCP were named as third parties in the case.
KCP’s financial statements also indicate that CNODC and the Ministry of Energy are working to finalize a draft mediation agreement.
As of the date the annual financial statements were approved, the outcome of the legal proceedings remained undetermined.
