Kazakhstan expects to begin expanding the oil pipeline to China in the coming year
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Preliminary feasibility studies of the project to expand the Kazakhstan-China oil pipeline are ready, construction is expected to begin in the coming year, the Minister of Energy of the Republic Almasadam Satkaliev told reporters.
“There are already preliminary feasibility studies; the Chinese side asked Kazakhstan to provide a plan for guaranteed supplies of oil volumes <...> We think that this will happen in the next year – construction will begin,” leads his words “Finmarket”.
The day before, October 4, President of Kazakhstan Kassym-Jomart Tokayev discussed with the Chairman of the Board of Directors of CNPC Dai Houlian, the prospects for further cooperation between the republic and the Chinese company in the oil and gas industry, the press service of the head of state reported. The parties discussed the prospects for expanding the export of Kazakh oil to China and the project for the construction of a new line of the Beineu-Bozoi-Shymkent gas pipeline.
The Kazakh company Kazmunaigas (KMG) and the Chinese CNPC agreed to expand the Kazakhstan-China oil pipeline in May, the cost of the work is estimated at approximately $200 million. KMG head Magzum Mirzagaliev explained then that it would be possible to increase the export of Kazakh oil to China by increasing the capacity of oil pipelines Atyrau – Kenkiyak and Kenkiyak – Kumkol. Now their throughput capacity, according to him, is only 6 million tons per year.
At the same time, the capacity of the Atasu-Alashankou pipeline is 20 million tons, which Kazakhstan could theoretically fill with its own oil, Mirzagaliev noted. Currently, this section already supplies China with 10 million tons of Russian oil per year and only 1-2 million tons of Kazakh oil. Analysts interviewed by Vedomosti called it logical for Kazakhstan from a political and economic point of view to expand supplies to China.
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