Order of the Chairman of the Agency of epublic of Kazakhstan for Regulation of Natural Monopolies
In accordance with the order of the acting Chairman of the Agency of Republic of Kazakhstan on Regulation of Natural Monopolies of January 9, 2007 No. 12-OD, Kazakhstan-China Pipeline LLP is included in the republican section of the State Register in the field of natural monopoly - transportation of oil and (or) oil products through main pipelines, for the service - oil pumping through the main pipeline system.
According to the order of acting Chairman of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of Republic of Kazakhstan (hereinafter CRNM) dated August 28, 2019 No. 4-NU, the functions of state regulation and control of the activities of the Partnership are delegated to CRNM Almaty Department .
In accordance with the Law on Natural Monopolies, services of transportation of oil through main pipelines for the purpose of transit through the territory of Republic of Kazakhstan and export outside the Republic of Kazakhstan are withdrawn from the sphere of natural monopolies.
Domestic market (regulated service)
In accordance with paragraph 3 of Article 15 of the Law of the Republic of Kazakhstan “On Natural monopolies” No. 204-VI dated December 27, 2018 established by Order of the Partnership No. 29/81 dated November 29, 2019, the tariff for regulated service on oil transfer through Kenkiyak-Kumkol pipeline to the domestic market was approved in the amount of 6,456.0 tenge for 1 ton per 1,000 km (excluding VAT) with entry into force on January 1, 2020.
In accordance with the order of Almaty Department of the Committee on regulation of natural monopolies of NNE RK dated December 31, 2019 № 74-ОD, the tariffs for regulated service of oil pumping through Kenkiyak-Kumkol main pipeline of Kazakhstan-China Pipeline LLP for the internal market were approved effective from February 1, 2020 as follows:
for 2020 – 7 158,01 kzt/1 ton per 1000 km (without VAT);
for 2021 – 4 323,07 kzt/1 ton per 1000 km (without VAT);
for 2022 – 4 359,42 kzt/1 ton per 1000 km (without VAT);
for 2023 – 4 816,77 kzt/1 ton per 1000 km (without VAT);
for 2024 – 4 838,79 kzt/1 ton per 1000 km (without VAT).
Export (non-regulated services)
By order of the Genera lDirector of Kazakhstan-China Pipeline LLP dated December 28, 2016 No. 29/82, the tariff for the service for pumping oil through the main pipeline system of Kazakhstan-China Pipeline LLP for export purposes outside the Republic of Kazakhstan, in the amount of 6,799 tenge per 1 ton per 1,000 km (excl. VAT).
Transit (non-regulated services)
By order of the Minister of Energy of Republic of Kazakhstan dated December 28, 2018 No. 545, for the period 2019-2023, the cost of transporting Russian oil in an amount of up to 10 million tons per year through the territory of Republic of Kazakhstan to the People's Republic of China on section Atasu (Republic of Kazakhstan) - Alashankou (People's Republic of China) was approved in the amount of 10.77 US dollars per 1 ton excl. VAT.
In accordance with the letter of CRNM dated January 27, 2017 No. 34-13-27 / 17776, consent was obtained to alienate the property of the Partnership or to make other transactions with the property of the Partnership for transfer to property lease (rental) in favor of KazTransOil JSC of 4 dark fibers of a fiber optic communication line in free reserve.