China is ready to partake in developing Caspian: ambassador

Kazakhstan, Astana, April 8 / Trend , K.Arynova/

Chinese ambassador to Kazakhstan Chen Gopin said in his interview with Trend in Astana that a number of important agreements on new oil and gas projects will be signed during Kazakh President Nursultan Nazarbayev's upcoming visit to Beijing.

Q: Kazakhstan's export infrastructure towards China is rapidly developing. The second line of the Kazakhstan-China oil pipeline is expected to be completed in late 2009. What is the reason behind this development?

A: The rapid development of pipeline projects with China is attributed to some factors. The first and foremost is political. Admittedly, Kazakhstan-China relations experience the best time. Our bilateral ties have been strengthening after we signed agreement on strategic partnership in 2005.

The second factor is that China's demand for energy grows every year. Our country imported 200 million tons of oil in 2008. It can total 300 million tons in 2009. The third factor is the fact that the Chinese CNPC has maintained close contact with KazMunayGaz since it has entered Kazakh market.

Q: Which suppliers will fill up Kazakhstan-China pipeline? Will Chinese companies be among them?

A: Currently our major partner in this project is Kazakhstan. There is no third party yet.

Q: American ChevronTexaco has reportedly agreed to supply the oil produced in Kazakhstan to China via this pipeline?

A: This issue is being discussed at the moment.

Q: It is known that Chinese state investors have acquired several oil companies and later sold half of the stakes to KMG. The core of the strategy is that each transaction encourages the next one or fulfils the other tasks in this way?

A: The CNPC has actually concluded such deals. It buys and then sells part of the stakes to Kazakhstan. This is our policy in Kazakhstan. Our policy is that both sides will gain real benefit.  

Q: Earlier it was discussed to construct joint Kazakh-Chinese Oil Refinery Plant (ORP) in a border zone. Has the project been postponed or considered as unprofitable?

A: Earlier, both sides discussed the project to build the ORP in a border zone where the "Kazakhstan-China" oil pipeline will finish. And earlier, the sides discussed to construct the ORP in our country. But the Kazakh side expressed its intention to build the plant in its border territory.

At present China does not have principal objections against Kazakh partners' desire to construct the ORP in their territory from borders. We will discuss this project in near future and we intend to implement the project regardless where it will be built.

Q: Which capacity will the ORP have?

A: We have a ORP in a border- in Dushanzi city. Its project capacity is 5-6 million tons per year. I think the new plant's capacity will be more than that one.

Q: Will China finance this project, if Kazakhstan does not have enough funds for it?

A:  China has funds and technology. Of course, China can invest in implementing the ORP construction project in a border zone after reaching an agreement between the two countries.

After finishing the second stage of "Kazakhstan-China" oil pipeline which will be put into exploitation in late 2009, a total volume of oil transportation will b e 20 million tons per year. Therefore, it is necessary to build the ORP. And as we know, Kazakhstan has a great need in oil products at the moment.

Q: Kazakh media reported that CNPC is negotiating to purchase half of MangistuaMunayGas's. What can you say about it?

A: This issue will be discussed during Kazakh President Nursultan Nazarbayev's official Visit to China in April. It is planned that the sides will sign several new important documents on further cooperation in oil and gas sector. I am sure cooperation between our countries will achieve more successes.

Q: Will new projects of high level concern offshore fields in the Caspian Sea? Does China plan to buy a field in the shelf?

A: China is ready to participate in developing the Kazakh section of the Caspian Sea. But the projects are still under discussions.

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