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Kazakh Parliament approves bill on main pipelines

Oil&Gas Materials 14 June 2012 17:24 (UTC +04:00)
Kazakh Senate (the Parliament’s lower chamber) approved the bill on main pipelines on Thursday

Azerbaijan, Baku, June 14 / Trend E. Kosolapova/

Kazakh Senate (the Parliament's lower chamber) approved the bill on main pipelines on Thursday, Novosti-Kazakhstan reported.

The bill envisages a priority right of the State to participate in newly created pipelines which can be in public and private property.

"State's priority is conditioned by an important role of main pipelines in the country's economy. Due to strategic importance of such pipelines it is forbidden to give them in the property of physical and legal entities registered in accordance with foreign laws," Kazakh Oil and Gas Minister Sauat Mynbayev said.

The bill will regulate the social relations in the sphere of design, construction, operation, conservation and liquidation of oil and gas pipelines, as well as ensuring their efficient and safe operation.

According to the bill, a new national operator will be created in the country which will have exclusive right to render operator services on main pipelines in Kazakhstan and have at least 51 percent shares in new pipelines.

However this bill will not cover expansion of existing pipelines when some sections of the pipeline are replaced or new parallel pipeline threads are laid.
The bill also determines the operation life of the pipelines in accordance with project documentation. However, its operation life can be prolonged following diagnostic tests realized by specialized organizations.

Moreover, the new law establishes rights and obligations of the owner of pipeline, who carries out pipeline operation.

Moreover, Kazakh senators approved the bill on introducing amendments and addenda to Kazakhstan's some legislative acts on the main pipeline and taxation.

According to the bill, linear part of the pipeline will be considered as movable property. According to addenda proposed for the Land Code, the areas where the linear part of the pipelines lays will have a status of areas with special conditions of land use.

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