Tashkent, Uzbekistan, Aug.22
By Demir Azizov- Trend:
"Uzbekneftegaz" National Holding Company (NHC) and the China National Petroleum Corporation (CNPC) will create a joint venture for the construction and operation of the pipeline to be held along the Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China route, a source in government circles told Trend Aug. 21.
The agency's representative said that the joint venture agreement was signed during the state visit of President Islam Karimov to China.
In 2013 Uzbekistan and China signed an agreement on the construction and operation of the pipeline Uzbekistan-China with the capacity of 30 billion cubic meters of gas per year, which will pass along the Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China route. It is expected that the construction of the Uzbek section of the pipeline will begin in 2015.
Asia Trans Gas JV, created by "Uzbekneftegaz" and CNPC for the construction and operation of the "Central Asia-China" pipeline passing along the Turkmenistan-Uzbekistan-Kazakhstan-China route currently operate in Uzbekistan. The need to create a second joint venture is related to the financing of projects.
Construction of the "Central Asia-China" pipeline began in 2008. Its total length is about 7,000 kilometers, the pipe diameter is 1,067 mm, the capacity of the two threads of the pipeline is 30 billion cubic meters of gas per year, and its length along the territory of Uzbekistan is 525 km., the first of the two pipelines was put into operation in December 2009, and the construction of the second line was completed in 2010.
At present the construction of the third line of 530 km long and with design capacity of 25 billion cubic meters of gas per year scheduled for late 2014 is being implemented.
Funding of the project worth about $ 2.2 billion worth is being implemented at the expense of loans of the State Development Bank of China, as well as direct investments of CNPC.
"Uzbekneftegaz" NHC is the monopoly operator of the oil and gas sector of Uzbekistan. It was established in 1998 and comprises six joint stock companies.
Uzbekistan production holds the third place among the CIS countries for natural gas and is among the ten largest gas-producing countries in the world. Every year the country produces about 60 billion cubic meters of gas.