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Uzbekistan postpones construction of fourth branch of Central Asia-China gas pipeline

Business Materials 23 December 2015 19:26 (UTC +04:00)

Tashkent, Uzbekistan, Dec. 23

By Demir Azizov- Trend:

Uzbekistan postponed the construction of the fourth branch of the Central Asia-China gas pipeline for 2016, a source close to the project told Trend.

"The beginning of construction and adjusting of the project implementation period are connected with technical reasons," the source said. "The issue of establishing a company, which will carry out the construction, has not been resolved yet."

However, the specific date was not disclosed.

Uzbekistan planned to start constructing the fourth line of the Central Asia-China gas pipeline in late 2015.

The length of the Uzbek section of the fourth branch of the gas pipeline will be about 210 kilometers, while the minimal cost - $800 million.

In general, the fourth line of the Central Asia-China gas pipeline with a total length of about 1,000 kilometers will pass through five countries - Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan and China and will increase its aggregate throughput capacity to 85 billion cubic meters.

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.

In 2014, Uzbekneftegaz National Holding Company (NHC) and the China National Petroleum Corporation (CNPC) signed an agreement to create a joint venture for the construction and operation of the pipeline to be held along the Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China route. The need to create a second joint venture is related to the financing of projects.

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.

In late 2014, Asia Trans Gas JV completed construction of the third branch of the gas pipeline running to China worth $2.2 billion. The length of the third branch of the Uzbek section is 530 kilometers, while its design capacity is equal to 25 billion cubic meters of gas per year.

The first branch of the gas pipeline was commissioned in December 2009 and the construction of the second branch of the gas pipeline was completed in 2010. The total capacity of the two branches is 30 billion cubic meters of gas per year.

The construction of the Central Asia-China gas pipeline started in 2008. Its total length nears 7,000 kilometers, while the pipe diameter equals 1,067 millimeters.

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