The Kazakh sovereign wealth fund Samruk Kazyna Group and the China National Petroleum Corporation (CNPC) have signed agreements to jointly develop four large-scale oil and gas projects in Kazakhstan. Both parties have agreed on a 6 Mt/year extension of the Kenkiyak-Atyrau oil pipeline (6 Mt/year currently) in reverse mode and on a 5 Mt/year extension for the Kenkiyak-Kumkol pipeline (10 Mt/year currently), both located in western Kazakhstan. The pipelines allow the transfer of oil from the Kazakh Caspian Sea to the Chinese autonomous region of Xinjiang.
Samruk Kazyna and CNPC have also agreed to double the refining output of the Shymkent refinery, located in southern Kazakhstan, from 6 Mt/year to 12 Mt/year. Both sides agreed to conduct an analysis of resource potential, target markets and business model.
In addition, they have agreed on CNPC’s participation in the construction of the second line of the Beineu-Bozoi-Shymkent natural gas pipeline, with a capacity of 15 bcm/year. To that end, they decided to create a joint working group of QazaqGaz and CNPC, as well as to develop a feasibility study and determine preliminary sources of financing for the project before the end of 2023. The working group will also work on the construction of a gas processing plant at Kashagan, with a capacity of 4 bcm/year.
Kazakhstan is among China’s top oil and gas suppliers. In 2020, most of Kazakhstan’s gas exports were sent to China (58%).
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