The Kazakhstan senate has ratified the protocol to amend the intergovernmental agreement between Kazakhstan and China on cooperating to build the Kazakhstan-China gas pipeline dated 18 August 2007, Novosti-Kazakhstan reports. "The main goal of the protocol is to develop long term cooperation with China to build and use the Beyney-Shimkent pipeline. The protocol envisions other rules than those written in Kazakhstan legislation", Kazakshtan Oil and Gas Minister Sauat Mynbayev said while presenting the document to the senate. Specifically, the minister said that the joint venture to be set up by Kazakhstan and China will not be subject to customs duties, VAT and with some exceptions, corporate income tax.
The tariff for pumping the gas along the Beyney-Shimkent pipeline is to be set at $4.68 per 1,000 cubic meters of gas, but this rate is not final since project documentation must still be agreed with the Chinese side, Mynbayev said. The pipeline route will cross the Mangistau, Aktyubinsk, Kyzylordinsk and South-Kazakhstan regions. The protocol was signed on October 14, 2009 in Beijing. The pipeline is viewed as the second stage of the Kazakhstan-China pipeline.
