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Status of Uzbekistan’s gas transportation projects in December 2014

Oil&Gas Materials 29 December 2014 14:59 (UTC +04:00)

Tashkent, Uzbekistan, Dec. 29

By Demir Azizov- Trend:

The Uztransgaz joint stock company - Uzbekneftegaz's subsidiary controls the activity for gas transportation and delivery in Uzbekistan.

At present, around 13,274 kilometers of trunk gas pipelines, 24 gas compressor and 310 gas distribution stations, as well as three underground gas storage facilities with a total capacity of 4.5 billion cubic meters of gas are used in the Uztransgaz system.

Central Asia- Center Gas Pipeline

The Central Asia-Center gas pipeline was put into operation in late 1960's with a capacity of 80 billion cubic meters per year. Over time, the pipeline's power was reduced to 40-50 billion cubic meters per year. Reconstruction is necessary.

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 Uzbek natural gas to Russia.

In late December of 2012 Gazprom and Uzbekneftegaz signed a contract to buy Uzbek gas, and an agreement on gas transportation through Uzbekistan for a period from 2013 to 2015.

According to Russian sources, over the past five years, the gas export from Uzbekistan to Russia fell three times from 15.4 billion cubic meters in 2009 to 5.65 billion cubic meters in 2013. The contract for 2013 stipulated the delivery of 7.5 billion cubic meters of Uzbekistan's gas at $253 per 1,000 cubic meters.

Central Asia-China gas pipeline

The length of the Central Asia-China gas pipeline through the territory of Turkmenistan is 188 kilometers, Uzbekistan - 525 kilometers, Kazakhstan - 1,293 kilometers, China - over 4,860 kilometers.

The gas pipeline stretches to the city of Guangzhou, China, where gas is distributed through existing gas branches.

The first branch of the gas pipeline with diameter of 1,067 millimeters (two parallel branches), length of 530 kilometers and capacity of 40 billion cubic meters of gas per year runs through territory of Bukhara, Kashkadarya and Navoi regions subsequently going to Kazakhstan's gas transport system.

The construction of the first section started on July 1, 2008. Construction of the first branch of the pipeline's Uzbek section was completed in late 2009.

Construction of the second branch of the Central Asia-China pipeline's Uzbek section, with the capacity of transporting 25 billion cubic meters of gas annually for pumping gas volumes from the fields in Uzbekistan, Turkmenistan and Kazakhstan was completed in late 2010.

In October 2011, the Uztransgaz JSC and Chinese Petro China International Company Limited signed a contract to supply China with about 10 billion cubic meters of Uzbek gas. Regular gas supplies to China started in August 2012.

In December 2011, Uzbekistan and China started the construction of the third branch of the Central Asia-China gas pipeline. The total length of the third line will be 1,840 kilometers. The section's length passing through Uzbekistan will be 530 kilometers.

Construction of the new pipeline worth $2.05 billion and with a capacity of 25 billion cubic meters of gas per year was completed in December 2014. The project was financed by loans from the China Development Bank (CDB), as well as direct investments of China National Petroleum Corporation (CNPC).

The operator of the project on the Uzbek section is Uzbek-Chinese Asia Trans Gas LLC JV created by Uzbekneftegaz National Holding Company and China National Petroleum Corporation (CNPC).

Uzbekistan and China signed an agreement in 2013 to construct and operate the fourth branch of Uzbekistan-China gas pipeline with the capacity of 30 billion cubic meters of gas per year. The fourth branch is designed to run on Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China route. It is expected that the construction of the Uzbek section of the gas pipeline will start in 2015.

The export contract to supply Uzbek natural gas to China was signed in October 2011. The contract was signed by Uztransgaz JSC and PetroChina International Company Ltd. (the division of China National Petroleum Corporation (CNPC)), according to Uzbekneftegaz company.

The framework agreement envisages the purchase of 10 billion cubic meters of Uzbek gas by China per year.

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