Kazakhstan wants feasibility study for gas pipeline to China

Oct 13, 2005 02:00 AM

Kazakhstan will by the end of 2005 select a company to carry out a feasibility study for the construction of a gas pipeline from Kazakhstan to China, KazMunaiGaz Managing Director Kairgeldy Kabyldin said.
"There are future volumes of Kazakh gas that do not have any designated route. With this aim we signed an agreement with China in August of this year on the construction of a gas pipeline from Kazakhstan to China. By the end of the year a contractor to carry out the corresponding investigations determining the technical and economic aspects of this project should be selected," he said at the 13th Kazakhstan International Oil and Gas Conference in Almaty.

Kazakhstan is beginning to look at "future alternative routes for Kazakh gas on other markets," he said. "Undoubtedly, this is China's large nearby market, which will grow with every year," Kabyldin added.
"The 4,000 km West-East gas pipeline in China was completed in 2004 with an annual 30 bn cm capacity," he said. Thus, China is interested in large supplies of natural gas.

"In gas transportation, Kazakhstan is tied to only one route -- via Gazprom. In this respect we have certain problems linked with the transit of Kazakh gas through Russia. Gazprom, using monopoly rights, does not give Kazakh producers the price they could obtain. An alternative route would give Kazakhstan a better position in negotiations with Gazprom on transit of our gas to European markets," Kabyldin added.
"The pipeline will probably go from western Kazakhstan through the centre to China. A route through the centre of Kazakhstan to China is best, as it will be a bridge for supplies of Turkmen, Russian and Kazakh gas to China," Kabyldin told after the conference.

The pipeline will be about 3,000 km long, he said. Gas produced at the Karachaganak, Tengiz and Kashagan fields will fill the pipeline, he said.
Kazakhstan produced 20.49 bn cm of gas in 2004, up 45.9 %. Production grew 36 % year-on-year in the first eight months of 2005 to 17.44 bn cm. Kazakhstan plans to increase production to 50 bn cm a year by 2010 and to 80 bn by 2015.

Source: Asia Pulse
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