Kazakh Parliament’s lower chamber approve agreement on Kazakhstan-China pipeline

Oil&Gas Materials 11 September 2013 13:07 (UTC +04:00)

Azerbaijan, Baku, Sep 11 / Trend E. Kosolapova/

Kazakh Majilis (Parliament's lower chamber) has approved a draft project concerning the intergovernmental agreement on the Kazakhstan-China pipeline at a plenary session on Wednesday, Majilis press service reported.

According to the document, the tariff for the transportation of exporting Kazakh oil is the same regardless of the point of oil entry into the pipeline. The longitude route is not taken into consideration while calculating a tariff. Moreover the tariff for the oil supply to Kazakh market should not exceed the tariff for oil exports.

If a lack of energy resources is observed in the domestic market as a result of any circumstances, Kazakhstan has the right to make changes to the monthly export volumes following notification to China.

New power and communication lines, roads, boiler rooms and public facilities and eight additional pumping stations will be built along the pipeline.

The construction of the Kazakhstan - China oil pipeline was planned in two phases. The Atasu - Alashankou section of the pipeline was built in 2005 within the first phase.

Within the implementation of the project's first stage of the second phase, the Kenkiyak-Kumkol section of the pipeline was built in 2010.

Kazakhstan and China together work on expanding the pipeline.