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CEFC China Facilitates First China-Kazakhstan Railway Transport of LPG

CEFC China  

CEFC China-controlled Dostyk transshipment station in Kazakhstan

 

18 LPG tank cars departing from the transshipment station

 

18 tank cars leaving for Kuytun in Xinjiang

 

On January 12, 2017, 18 tank cars loaded with liquefied petroleum gas (LPG) departed from Dostyk, a transshipment station in Kazakhstan, for Kuytun in Xinjiang, China, marking the first time of railway transportation of LPG from Kazakhstan to China while previously such supplies had to be transported by road. The railway transportation is expected to increase the transshipment volume at the Dostyk station from the current 200,000 tons p.a. to more than 700,000 tons p.a. and provide a steady supply of LPG to large refineries in northwestern China.


Due to the recent development of programs of propane dehydrogenation and further processing of alkanes, China’s demand for LPG has increased significantly, especially for the imported LPG which was mostly supplied in the southeastern coastal areas. The supply needed by the faraway western and northeastern areas had to depend solely on imported LPG transported by tank trucks, which is far from quenching the local thirst for LPG. As the railway transportation of large-volume LPG is not affected by weather conditions, it will help significantly to fill the gap in raw material supply to refineries in northwestern China.


CEFC China has been actively promoting international energy cooperation under the framework of the “Belt and Road” Initiative by building a Eurasian energy channel that serves China’s energy strategy. In 2015, CEFC China took over Dostyk LPG transshipment station in Kazakhstan, through one of its listed subsidiaries, and established a joint venture with China Railway to carry out railway logistics and oil and gas transportation operations. By connecting the energy logistics enterprises it has acquired including Dostyk and Petroleum LLP to the largest railway transport system of China Railway in the world, CEFC China has established an onshore energy logistics network that runs from northwestern China straight to Europe, connects China and the Central Asia with the transportation of dangerous goods, lubricants and gas, and links China and Kazakhstan with oil and gas. Following a rapid succession of negotiations over technologies and trade facilitated by the efforts of CEFC China and other interested parties, in November, 2016, the railway transportation program of LPG between China and Kazakhstan was approved by China Railway. Moving forward, the two companies will expand their cooperation on investment to steadily transport oil and gas resources abundant in Central Asia via railway to Xinjiang, Inner Mongolia, Gansu and other parts of China.

 

 

 


 
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