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Kazakhstan and China to increase capacity of gas pipeline

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Kazakhstan and China will increase the capacity of the first section of the main gas pipeline by construction of the additional line.

A draft law has been made to create legal grounds for the increase: "The draft law provides for an increase of capacity of the first section of Kazakhstan-China gas pipeline (lines A and B) by means of construction of line C, which will allow to transport additional 25 billion cubic meters of gas per year,” Kazakhstan Minister of Oil and Gas Sauat Mynbayev said presenting the draft law On ratification of the protocol on amendments to agreement between Kazakhstan and Chinese governments on cooperation in construction and exploitation of Kazakhstan-China gas pipeline dated August 18, 2007 to the Majilis (the lower chamber of the Kazakhstan parliament).

The project cost is estimated at around $5.45 billion, he said. A loan of $4.7 billion has been obtained from China Development Bank to fund the project. The remaining funding will be provided by Asian Pipeline company.

Over 53 billion cubic meters of gas have already been pumped through A and B lines from Kazakhstan to China, Mynbayev said.

Tengri News

May 31 2013, 16:53

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