Kyrgyzstan

Zhongda Oil Refinery


Location: Kara-Balta
Sector: Mineral and petroleum exploration, mining and processing
Total cost: $ 250 mln 
Chinese partner: China Petrol Company Zhongda Ltd.
Kazakhstani partner:
Construction start: 2009
Putting into commission: 2013

Partners summary

China Petrol Company Zhongda Ltd. was founded with the approval of China's National Development and Reform Commission. Primary activity: processing, production, sale, transportation of oil and oil products; trade and mediation activities; construction and installation work. 

Description of the project

The Zhongda refinery, launched in 2013, is located in Kara-Balta city, which is the administrative center of the Zhayyl district, the most technologically developed region of the Chui region (there are 34 enterprises in the city, 22 of which are industrial facilities). [1]

The oil refinery is strategically important for the Kyrgyz side, since its full-fledged launch would allow achieving the republic’s fuel and energy independence and lower fuel prices. The design goal is the processing of 800-850 thousand tons of crude oil per year to produce about 650 thousand cubic meters of finished products, including gasoline grades AI-85, AI-92, AI-97, diesel fuel, fuel oil and engine oils. It was assumed that the Zhongda refinery would be able to meet the internal needs of Kyrgyzstan in fuel and lubricants by 50-70%. [2]

This Chinese-invested refinery paid the Kyrgyzstan government 43 million U.S. dollars last year, being the country's second largest taxpayer. It's also one of the nation's largest employers, hiring over 2,000 people. Over 80 percent of the employees are locals, including technicians. The company used to send staff to China for specialty training, which has led to the high employment. [3]

In 2015 the State Inspectorate for Environmental and Technical Safety reported the violation of the Land Code of the Kyrgyz Republic.[4] The company was sued for $2,1 million som for damage to land and roots of trees. [5]