Kazakhstan’s sovereign wealth fund Samruk-Kazyna and China National Petroleum Corporation (CNPC) are collaborating to further develop Kazakhstan’s oil and gas industry, according to a fund press release.
At a meeting in Astana, Samruk-Kazyna said Kazakh national oil company KazMunayGas (KMG) and CNPC will work together to increase the capacity of the Kenkiyak-Atyrau and Kenkiyak-Kumkol pipelines, which are used to transport Kazakh oil to China . The companies aim to expand the production capacity of the Kenkiyak-Atyrau pipeline to 12 million metric tons per year from six million metric tons per year, and the Kenkiyak-Kumkol pipeline to 15 million metric tons per year from 10 million metric tons yearly .
KMG said 4.5 metric tons of oil were pumped through Kenkiyak-Atyrau and 8.1 million metric tons of oil through Kenkiyak-Kumkol by 2022. KMG CEO Magzum Mirzagaliyev had said that the Kazakhstan-China pipeline expansion would cost about $200 million and should be completed in two to three years, according to an earlier statement. Mirzagaliyev said the project could increase Kazakh oil exports to 20 million metric tons from current production of one million to two million metric tons.
CNPC and Kazakhstan’s national gas company Qazaqgas will also create a joint working group to build the second line of the Beineu-Bozoi-Shymkent pipeline with a capacity of 529.72 billion cubic feet (15 billion cubic meters) per year, according to the press release . The pipeline transports gas to the southern regions of Kazakhstan, as well as to China.
The task force will complete a feasibility study and determine preliminary sources of funding for the project by December 31, 2023. The group will also target the construction of a gas processing plant in Kashagan with a capacity of 141,259 cubic feet (four billion cubic meters) of gas. per year, according to the release.
Samruk-Kazyna and CNPC are also discussing plans to increase production at the Shymkent refinery by six million tonnes a year, the fund said.
Wind energy plans
In separate press releases, Samruk-Kazyna said Kazakhstan is building one gigawatt (GW) wind power plants in the Dzunghar Gate area and Zhambyl region, respectively. The power stations will each have an electricity storage system.
The Dzunghar Gate wind farm will be jointly built with Saudi Arabia’s ACWA Power, while the Zhambyl wind farm will be jointly built with China Power International Holding.
ACWA Power is a developer, investor and operator of power generation and desalinated water plants with 77 assets in operation, construction or advanced development in 12 countries. The company has invested about $78.2 billion in its projects, which have a total capacity of about 50.4 GW, according to the press release.
China Power International Holding is a subsidiary of State Power Investment Corporation, founded in Hong Kong in 2004. The company focuses on the development, construction, operation and management of large power grids in China.
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