Kazakhstan pipeline

Currently, the eastern export direction is developing most rapidly. “NC “KMG” JSC together with China National Petroleum Corporation worked on construction of Kazakhstan-China oil pipeline. The first project for construction of Kazakhstan-China oil pipeline is aimed at diversifying oil transportation directions within the framework of pursuing the policy of creation of a multi-vector system for transportation of hydrocarbons of independent Kazakhstan.

Construction of Kazakhstan-China pipeline is provided in two stages. The first step was implementation of the project Atasu-Alashankou, construction of which was conducted in accordance with the Framework Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on development of comprehensive cooperation in oil and gas fields (Beijing, May 17, 2004).

In order to build a pipeline, JSC “KazTransOil” and the China National Corporation for exploration and development of oil and gas (a CNPC subsidiary) have created “Kazakhstan-China Pipeline” LLP (“CCP” LLP) on a parity basis.

The length of the route of Atasu-Alashankou pipeline is 963 km. The pipeline diameter is 813 mm. The capacity of the first phase is 10 million tons per year with further expansion up to 20 million tons per year. The route of the pipeline passes through three regions: Karaganda, East Kazakhstan and Almaty to the final destination Alashankou in China. The project was financed through debt financing guaranteed by the Chinese side. Transportation of oil via Atasu-Alashankou oil pipeline began in 2006. Implementation of Kenkiyak-Kumkol pipeline construction project, with capacity of 10 million tons per year, is the first stage of the second phase of construction of Kazakhstan-China oil pipeline and conducted in accordance with the “Agreement on basic principles of construction of the second stage of the Kazakhstan-China oil pipeline between China National Petroleum Corporation and joint-stock company “National Company “KazMunayGas” (Agreement) as of December 20, 2006, on parity basis with China by the “CCP” LLP.