KMG, CNPC begin feasibility study for Kazakhstan-China pipeline expansion

ASTANA. July 31 (Interfax) - KazMunayGas (KMG) and China National Petroleum Corporation are beginning a feasibility study for the Kazakhstan-China oil pipeline expansion.

KMG CEO Askhat Khasenov and CNPC President Zhou Xinhuai discussed the issue at a meeting in Beijing, KMG's press service said Friday.

"The Chinese side has completed its internal corporate procedures, and KMG and CNPC are now starting work on a feasibility study. The goal is to boost the Kenkiyak-Atyrau pipeline's capacity to 15 million tonnes and the Kenkiyak-Kumkol pipeline to 20 million tonnes per year," the statement said.

The Kenkiyak-Kumkol pipeline was built under a 2004 framework agreement between the Kazakh and Chinese governments on comprehensive oil and gas cooperation. It was commissioned in 2009, spans 794.2 km and has a design capacity of 10 million tonnes per year.

The Kenkiyak-Atyrau pipeline was commissioned in 2003 and runs through the Aktobe and Atyrau regions, with oil pumped in both forward and reverse modes. It transports oil to the Uzen-Atyrau-Samara and CPC pipelines, supplies West Kazakhstan oil to domestic refineries in Shymkent and Pavlodar, and serves export routes. Its design capacity is 6 million tonnes per year.

KazMunayGas is Kazakhstan's national oil and gas company, representing state interests in exploration, production, refining and transportation.

CNPC is China's state-owned oil and gas corporation and the country's largest energy company, engaged in exploration, production, refining and supply.