Kazakhstan to increase gas supplies to China

15 January 2018 11:34 (UTC+04:00)

By Kamila Aliyeva

Kazakhstan and China agreed to increase Kazakh gas exports to China.

Kazakh National Company KazMunayGas and China National Petroleum Corporation (CNPC) held bilateral negotiations within the framework of the agreement signed earlier by the heads of the two states, according to the press service of KazMunayGas, Kazinform reported.

Following the meeting, the sides agreed on the further increase in the supplies of Kazakh gas to China up to 10 billion cubic meters per annum.

The parties stressed the need for further development of the gas pipeline infrastructure, as well as modernization and capacity expansion of the existing pipelines.

During the meeting, they also decided to gradually increase the capacity of ‘A’ and ‘B’ legs of Kazakhstan-China Pipeline by the end of 2019.

It is planned to increase the capacity of the Beineu-Bozoy-Shymkent pipeline by building new compressor stations and upgrading the existing ones.

Vice President of KazMunayGas Kairat Sharipbayev underlined the strategic significance of supplying the Kazakh gas to China and assured of the readiness of Kazakhstan's gas pipeline system to expand transportation and exports.

“Kazakh gas exports to China is possible due to the agreements reached by the heads of states and two similar government programs of Kazakhstan and China ‘Nurly Zhol’ and ‘One Belt, One Road’, which contribute to the development and implementation of joint projects,” he said.

In 2017, China received 38.7 billion cubic meters of natural gas via the Central Asia-China gas pipeline, which is 13.37 percent more than last year. The total gas supplies to China amounted to 203.2 billion cubic meters.

Currently, there are three lines of the Central Asia-China gas pipeline - A, B and C. The combined capacity of these pipelines is 55 billion cubic meters per year. China and Turkmenistan agreed on a framework to provide China with a long-term supply of gas in 2006, after several rounds of negotiations and feasibility studies.

The first of these pipelines was completed in 2009 the second followed a year later. The third pipeline became operational in 2014, after taking two years to build.

This gas pipeline runs through the territory of Uzbekistan and Kazakhstan and crosses the Kazakh-Chinese border through Khorgos (Xinjiang-Uygur Autonomous Region, North-West China).

Construction of a fourth pipeline, Line D, is currently underway. It will connect Beyneu on the eastern coast of the Caspian Sea to the central facility of Shymkent. From Shymkent the gas will be directed to Turpan in Xinjiang, China. Line D will provide China with an additional 15 billion cubic metres on top of the 55 billion it already imports from Turkmenistan.

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

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