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Kazakhstan-China Gas Pipeline Phase II construction begins

21 Dec 2010

December 21, 2010 --- Construction of phase two of the Kazakhstan-China natural gas pipeline (the Beyneu - Shymkent section) on the Kazak side started. A groundbreaking ceremony of the project was held in Bozoi Compressor Station, Aktyubinsk.

According to an agreement signed by the governments of PRC and Kazakhstan on October 14, 2009 and an agreement signed by Kazakh state energy firm KazMunaiGas KMG ("KazMunaiGas") and China National Petroleum Corporation ("CNPC") on June 12, 2010, the preliminary work such as investigation into the technical viability of the project and negotiation over a joint venture between the two companies had been completed.

The pipeline to be constructed will begin at Beyneu, Mangystau province in Kazakhstan and will connect to the Central Asian gas trunk line at Shymkent in the southern part of the country. It will be 1,475 km long with a designed annual gas transmission capacity of 10 billion cubic meters. The capacity can be expanded to 15 billion cubic meters per year in the future. The pipeline will be constructed in phases according to the availability of gas supply at the source. The first phase of the pipeline project which will connect Bozoi and Shymkent will be 1,164-kilometre long and will be able to transmit 6 billion cubic metres of gas per year. The second phase, which is the Beyneu-Bozoi section to be constructed, will be 311 km long and will be able to transmit between 10 billion cubic metres and 15 billion cubic metres of gas a year. The first phase of the project is scheduled to be operational at the end of 2012.

Phase II of Kazakhstan-China Gas Pipeline will be able to boost the economic development of southern Kazakhstan and satisfy the household demand there. Meanwhile, it will also enable Kazakhstan to export part of its natural gas output to China through the connection with the Central Asia Gas Pipeline. It will also serve as a gas transmission outlet for the oil field in Aktyubinsk, stimulating further development of the gas fields there. CNPC and KazMunaiGas will form a joint venture to construct and operate the gas pipeline.

Translated extract from: http://www.cnpc.com.cn/cn/xwzx/tpxw/中哈天然气管道二期工程在哈开工.htm

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