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Kazakhstan to start natural gas exports to China October 15, aims to boost transit

Kazakhstan is set to start gas exports to China from October 15.

Kazakhstan to start natural gas exports to China October 15, aims to boost transit


Kazakhstan is set to start gas exports to China from October 15, based on a 1-year deal national gas transportation operator KazTransGaz said it signed with PetroChina International Company Ltd., Platts analysed on October 4, 2017.

The deal foresees 5 Bcm of gas supply and follows a MoU between KazTransGaz and PetroChina's parent company CNPC signed in June.

KazTransGaz expects export revenue of $1 billion from the deal, it said.

Gas will come from fields in Western Kazakhstan as well as KazTransGaz' underground storage and flow to Khorgos border point, crossing Uzbekistan.

To ensure stable gas flow to China and to its southern regions, Kazakhstan signed an intergovernmental with Uzbekistan allowing gas transportation from western Kazakhtstan to its southern parts and to China via Uzbekistan, it said.

Gas is to flow via the Beineu-Bozoi-Shymkent pipeline, running west to southeast Kazakhstan, then linking into the Kazakhstan-China pipeline, part of the larger 7,500-km (4,650-mile) Turkmenistan-Uzbekistan-Kazakhstan-China trunk pipeline.

The expansion of the Beineu-Bozoi-Shymkent pipeline capacity to 10 Bcm and that of Kazakhstan-China pipeline to 55 Bcm/year this year, will allow the start of Kazakh gas exports to China, according Kazakhstan's energy ministry.

Kazakhstan currently exports no gas of its own to China but has ambitious plans to bring gas exports and transit to China to 100 Bcm/year in the future, said KazTransGaz' deputy head of transformation and development, Erkanat Temirkhanov.

Energy minister Kanat Bozumbayev has warned that Kazakh gas would face strong competition from Turkmen, Uzbek and Russian gas supplied under long-term contracts with China.

The country currently exports about 30% of its natural gas production, with another 30% consumed domestically and the rest reinjected to maintain reservoir pressure for crude oil production.

Source : Neftegaz.RU


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