energy
KMG refinery plans put on hold
(SRI) - KazMunaiGas cancelled its plans to build a refinery in the Georgain port of Batumi, Russian oil industry news portal Oil of Russia reported citing a source in the Kazakh national oil company.
Furthermore, its plans to build a refinery in the Turkish port of Ceyhan together with a consortium of international oil companies have been put on hold, as the consortium failed to come to an agreement on land prices in the area. While some land on which the planned refinery is to stand belongs to the Turkish government, some belongs to private investors. The price demands of the private investors, most of whom snapped up the land in the thinly inhabitated area when the BTC pipeline was completed in 2004, put into question the rentability of the project.
The refinery was planned to be completed by 2012 with an annual capacity of 15 million tons and a price tag of $5 billion. The other partners in the project are Indian Oil India, Turkish Calik Enerji and Italian Eni.
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