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KazTransGas attains USD 700m loan from China

03rd March 2014

The 15-year loan was organized by the China Development Bank and would be used to complete a second, 311-km portion of a gas pipeline from southern Kazakhstan and additional volumes of natural gas to China

The gas pipeline route extension of 1,3 thousand km will begin at the border of Uzbekistan and Kazakhstan and reach the Chinese border at Horgos city

Kazakhstan's gas pipeline monopoly KazTransGas has entered into an agreement to acquire a USD 700m loan from China to develop a pipeline to increase gas exports, Reuters has reported.

According to KazTransGas, the 15-year loan was organized by the China Development Bank. It also revealed that the loan would be used to complete a second, 311-km (194 mile) portion of a gas pipeline from southern Kazakhstan and would transport additional volumes of natural gas to China through the existing Kazakhstan-China pipeline.

KazTransGas is a state-owned subsidiary of Kazakh national oil and gas company, KazMunaiGas. The company was established in February 2000. They implemented the construction of the first portion of the Kazakhstan – China main gas pipeline in order to improve the “transit capacity” of Kazakhstan and to receive supplementary income.

The gas pipeline route extension of 1,3 thousand km will begin  at the border of Uzbekistan and Kazakhstan and reach the Chinese border at Horgos city. The gas capacity is estimated to be about 40 bln m3 per year and 10 bln m3 per year for domestic consumption in Kazakhstan.

Since the first thread of gas pipeline was commissioned at the end of 2009, around 42.5 bn m3, including in 2012 – 22,8 bln m3 has been transported to China.

As of July 2011, an agreement between Kazakhstan and China was established for the construction and operation of the Kazakhstan – China gas pipeline. Both countries agreed to expand the capacity of first part of the pipeline by 25 bln m3 per year, while 20 bln m3 is meant for China to transit Turkmen and Uzbek gas to the People’s Republic, and 5 bln m3 per year for Kazakhstan to supply its domestic gas market and possible export to China.

 

 

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