Uzbekistan begins gas exports to China
Uzbekistan, Tashkent, April 2 / Trend, D. Azizov /
According to the Uzbekneftegaz National Holding Company (NHC), an export contract for the supply of Uzbek gas to China was signed in October 2011. The contract was signed by Uztransgaz Company and PetroChina International Company Ltd., which is a subsidiary of the China National Petroleum Corporation (CNPC).
The intergovernmental agreement is based on the principles relating to the construction and operation of the Uzbekistan-China gas pipeline and agreements on the sale of natural gas between Uzbekneftegaz and CNPC.
"Part of the volume of Uzbek gas will be supplied to China from April 1," the holding board chairman Shokir Faizullaev said. He did not reveal the volume of gas to be exported to China this year.
The Framework agreement envisaged the purchase of Uzbek gas to the volume of $10 billion cubic meters annually by China.
The first branch of the gas pipeline was commissioned in December 2009 with the second one being completed in 2010. The capacity of two branches reached 30 billion cubic meters of gas per year.
A ceremony launching the construction of the third branch of the Central Asia - China gas pipeline with a design capacity of 25 billion cubic meters a year was held in December 2011. It is expected that the supply via the third branch of the gas pipeline will begin in January 2014.
For natural gas production Uzbekistan ranks third among the CIS countries and tenth among major gas-producing countries. Each year the country produces about 60 billion cubic meters of gas.