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Kaztransgas signs new 5-year gas supply agreement with China (Kazakhstan)

Chinese state-run gas company Petrochina (an affiliate of CNPC) has signed a new 5-year gas sales-and-purchase agreement (SPA) with Kazakhstan's state-owned company Kaztransgas, according to which 5 bcm/year of gas will be shipped from Kazakhstan to China. Negotiations for the deal were launched at the end of July 2018. It comes in the wake of the a previous agreement, which expired in October 2018: Kaztransgas started to export gas to China in October 2017 under the framework of a 1-year agreement with Petrochina for 5 bcm/year.



Another 5 bcm/year contract was signed between the two companies in October 2018 and it will also span over a 5-year period. Starting from 2019, Kazakhstan's gas exports to China will reach 10 bcm/year, taking advantage of Kazakhstan's higher domestic gas production (mainly associated petroleum gas) from the country's three giant projects (Karachaganak, Tengiz and Kashagan).



Kaztransgas exports the gas to China through the Beineu-Bozoi-Shymkent gas pipeline, which it plans to expand to 15 bcm/year shortly, and the Kazakhstan-China section of the larger 7,500-km Turkmenistan-Uzbekistan-Kazakhstan-China gas pipeline.

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