April 2009 Vol. 236 No. 4

Projects

China extends a helping hand

(20 April 2009, Pipeline Asia) China National Petroleum Corporation (CNPC) has extended up to $US5 billion in loans to KazMunaiGas to help fund the construction of the Beineu – Bozoi – Akbulak gas pipeline, which will serve southern Kazakhstan, according to local news sources.

The proposed Beineu – Bozoi – Akbulak pipeline will allow unhindered supplies of gas from western to southern region in the range of 5 Bcm/a to boost energy security and decrease dependence on external supplies. It is planned to be completed by 2014.

CNPC and KazMunaiGas have also signed a separate agreement to buy a stake together in Kazakhstan-based MangistauMunaiGas from Indonesia’s Central Asia Petroleum, which will also be assisted by the $US5 million loan.

Meanwhile, China and Kazakhstan have agreed to promote strategic co-operation in international and regional affairs to create better external conditions for their own development, according to a joint statement issued during Kazakhstan President Nursultan Nazarbayev’s recent visit to China.

China has also promoted further co-operation with Iran in a meeting between Chinese Premier Wen Jiabao and Iranian First Vice President Parviz Davoodi in south China’s Hainan Province. Mr. Wen said “We should steadily further our energy co-operation, explore the potential of finance and trade co-operation, so as to advance our mutual beneficial co-operation.”

Mr. Wen also met with his Myanmar counterpart Thein Sein calling on closer bilateral co-operation in the areas of energy and transportation network construction between the two nations.

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