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Status of Uzbek gas projects in Dec. 2012

Oil&Gas Materials 30 December 2012 13:16 (UTC +04:00)
Uztransgaz is a subsidiary of Uzbekneftegaz and controls the activities of transportation and supply of gas in Uzbekistan.

Uzbekistan, Tashkent, Dec 30 /Trend D.Azizov/

Uztransgaz is a subsidiary of Uzbekneftegaz and controls the activities of transportation and supply of gas in Uzbekistan.

Currently, the Uztransgaz system exploits 13,274 kilometers of trunk pipelines, 24 gas compressor and 310 gas distribution stations, as well as three underground gas storage facilities with total capacity of 4.5 billion cubic meters.

In the north-western Uzbekistan, some powerful sections of Central Asia - Center and Bukhara-Ural gas transmission systems are laid, which are designed for transit and export of natural gas.

In late December Gazprom and Uzbekneftegaz signed a contract to buy Uzbek gas and the agreement on the gas transportation through the Uzbek territory from 2013 to 2015.

Uzbekistan will deliver 7.5 billion cubic meters of gas at about $253 per 1,000 cubic meters to Gazprom in 2013 in accordance with the signed documents.
Central Asia-China gas pipeline

The length of 'Central Asia-China' gas pipeline through the territory of Turkmenistan is 188 kilometers, Uzbekistan - 525 kilometers, Kazakhstan - 1,293 kilometers, China - more than 4,860 kilometers. The gas pipeline was laid to the city of Guangzhou, China, where gas is distributed through existing gas branches.

In April, Uzbekistan and China signed an intergovernmental agreement on the principles of construction and operation of the third stage of the Uzbek section of the gas pipeline with a capacity of 25 billion cubic meters annually. It is planned to complete laying a new pipe worth $ 2.2 billion by 2014.

In April 2008, Uzbekneftegaz and China National Petroleum Corporation (CNPC) created the Asia Trans Gas JV for the design, construction and operation of the Uzbek section of gas pipeline Turkmenistan-China for transit of Turkmen gas with initial capacity of 30 billion cubic meters a year.

The first branch of the gas pipeline with diameter of 1,067 mm, length of 530 kilometers and capacity of 40 billion cubic meters of gas per year runs through territory of Bukhara, Kashkadarya and Navoi regions following to Kazakhstan's gas transport system.

The construction of the first section started on July 1, 2008.

Later Uzbek government and CNPC reached agreements on using the gas pipeline for transporting Uzbek gas to China in the volume of about 10 billion cubic meters per year.

In early 2009 CNPC signed contracts to carry out work on the gas pipeline's construction with China Petroleum Pipeline Bureau (CPP), China Petroleum Engineering & Construction Corporation /CPECC/ and Swiss Zeromax GmbH.

The cost of Uzbek section of the pipeline reaches more than three billion dollars. The project's operator is Uzbek-Chinese Asia Trans Gas JV, created by CNPC and Uzbekneftegaz for the design, construction and operation of the Uzbek section of the gas pipeline. Construction is led by China Petroleum Pipeline Bureau (CPP), China Petroleum Engineering & Construction Corporation (CPECC) and Uzbekneftegaz departments.

Construction of the first branch of the pipeline's Uzbek section was completed in late 2009.
The second branch of the Uzbek section of Central Asia-China gas pipeline and its infrastructure was commissioned in December 2010.

Uzbekneftegaz and China National Petroleum Corporation (CNPC) signed a framework agreement to purchase and sell natural gas to the amount of up to 10 billion cubic meters a year via the Central Asia-China gas pipeline in June 2010.

Uzbekistan launched regular supply of natural gas to China in August 2012.

Uzbekistan and China launched construction of the Central Asia-China gas pipeline's third branch in December 2011. The length of the section passing through Uzbekistan reaches 529 kilometers. It is planned to complete laying a new pipe worth $ 2.2 billion with capacity of 25 billion cubic meters a year by 2014.

It is expected that gas supply through the third branch will start in January 2014, reaching the projected capacity in December 2015.

The project worth $2.2 billion will be financed through loans from China Development Bank as well as direct investments from CNPC.

In August this year, China announced about the plans to increase gas imports from Central Asia by five times by 2015. According to the Chinese state-owned company CNPC, the capacity of the "Central Asia - China" gas pipeline will be brought up to 55-60 billion cubic meters of gas per year.

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