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Kazakhstan launches gas supplies to China

16 October 2017 19:26 (UTC+04:00)
Kazakhstan launches gas supplies to China

By Kamila Aliyeva

Energy-rich Kazakhstan, which strives to increase its gas export and transit potential, has launched its gas supplies to China on October 16.

The Kazakhstan-China gas pipeline is the most powerful in Central Asia, Kazakh Energy Minister Kanat Bozumbayev said commenting on the issue.

He recalled that the agreement on the construction and operation of the gas pipeline between the two countries was concluded in 2007.

"The realization of this site has made it possible to create a powerful transit corridor for the transportation of Central Asian gas to China as well as to increase the revenues of the Kazakh side from gas transit. Since the beginning of its operation, about 200 billion cubic meters of gas have been transported through this pipeline, thereby making it the most powerful gas transportation system in Central Asia," Bozumbayev said.

The minister also spoke about the second section of the gas pipeline - Beiney-Bozoy-Shymkent.

"This gas pipeline made it possible to ensure the energy security of gas supplies to the south of our country from the resources of Western deposits. Over 7 billion cubic meters of gas for the domestic market has already been transported through this pipeline. The possibility of gasification has been received by more than 500 settlements of the country along the route of the pipeline," he noted.

The minister also stressed that the construction of the main gas pipeline - Beiney-Bozoy-Shymkent – not only allowed to ensure the reliability of gas supply to the domestic market of the country, but also connected all strategically important gas pipelines of Kazakhstan to a single system.

He further talked on the profits of Kazakh enterprises from the gas export deal to China.

The revenues of KazTransGas JSC and companies of subsoil users producing gas will additionally make over $900 million from the export of 5 billion cubic meters of gas, according to Bozumbayev.

"I include both the cost of gas, profits and tariffs that joint ventures will receive for their share,” he said.

The Minister underlined the historical importance of today's gas export launch to China.

In addition, Bozumbaev expressed confidence that the gas pipeline’s capabilities exceed the transportation of 5 billion cubic meters.

"This is due to the fact that we have a new direction for the export of our gas. Historically, Kazakh gas was supplied to Europe through Russia, and it is very important that we have an alternative today. As many as 5 billion cubic meters is only the first step, as, in general, Kazakhstan has the technical capacity to supply 10 billion cubic meters," he said.

Today, the ceremony of the launch of gas exports to China took place in Astana. Chinese side will receive gas at the Khorgos border point. The export route of natural gas through the territory of Kazakhstan will be about 3,000 km long with more than 10 compressor stations used.

Kazakhstan holds 0.8 percent of the world’s natural gas proven reserves, and produces 0.6 percent of the world’s total gas output, according to the BP’s statistics 2015.

The country serves as a major transit country for gas exports from Turkmenistan and Uzbekistan that are destined to Russia and China. Volumes from Turkmenistan and Uzbekistan are transported through the Central Asia-China gas pipeline network that links with CNPC's Second West-East Pipeline in western Xinjiang province at the border with Kazakhstan.

The volume of gas exports rose by 7.9 percent in 2016 to 13.7 bcm.

Kazakh gas is expected to face strong competition from Turkmen, Uzbek and Russian gas supplies under long-term contracts with China.

A majority of Kazakhstan’s proved natural gas reserves and natural gas production is possible thanks to the Karachaganak field. The Karachaganak field's gas reserves are estimated at 1.35 trillion cubic meters while oil and liquid condensates around 1.2 billion tons.

About 49 percent of Kazakhstan's gas production and 18 percent of its produced oil are extracted from this field.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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