Kazakh Samruk-Kazyna, Chinese CNPC to develop Kazakhstan's oil and gas industry

Kazakhstan Materials 7 June 2023 10:07 (UTC +04:00)
Asmar Bayramova
Asmar Bayramova
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BAKU, Azerbaijan, June 7. Kazakhstan's Samruk-Kazyna National Welfare Fund and China National Petroleum Corporation (CNPC) agreed to jointly develop Kazakhstan's oil and gas industry, Trend reports.

This agreement was reached during a meeting in Astana between the management of Samruk-Kazyna's subsidiaries and CNPC. On the Kazakh side, the negotiations were led by Head of the Fund, Nurlan Zhakupov, and on the Chinese side by President of CNPC, Wang Yilin.

At the meeting, they discussed current cooperation and reached new agreements. For example, KazMunayGas national company and CNPC plan to jointly expand the capacity of the Kenkiyak-Atyrau oil pipelines in reverse mode by 6 million tons per year, as well as the Kenkiyak-Kumkol mainline by 5 million tons per year. The parties agreed to conduct preliminary studies.

Additionally, there are intentions to boost production at the Shymkent Oil Refinery by 6 million tons per year. An analysis of the resource base, market demand, and business model has been agreed upon.

Furthermore, discussions were held regarding CNPC's involvement in the construction of the second branch of the Beineu-Bozoy-Shymkent gas pipeline, with a capacity of 15 billion cubic meters annually.

A joint working group comprising QazaqGaz national company and CNPC will be established, and a feasibility study and preliminary sources of project financing are expected to be determined by December 31.

Additionally, joint plans include the construction of a gas processing plant in Kashagan with a capacity of 4 billion cubic meters of gas per year. This matter will also be addressed by the joint working group of QazaqGaz and CNPC.