KazTransGas, Trans-Asia Gas Pipeline for JV for Beyneu-Bozoi-Shymkent pipeline
ALMATY. Dec 20 (Interfax) - Kazakhstan's KazTransGas and China's Trans-Asia Gas Pipeline Co td. have established a joint venture to build the Beyneu-Bozoi-Shymkent gas pipeline.
"Financing for the project will come from $1 billion charter capital, which was formed through contributions of $500 million by each side, and debt financing of nearly $3 billion. Kazakhstan will use public funds from the national budget to finance its contribution to the JV," KazTransGas said in a press release on Monday.
The Beyneu-Bozoi-Shymkent project is implemented in accordance with the agreement between the governments of Kazakhstan and China on cooperation in construction and operation of the Kazakhstan-China Pipeline from August 18, 2007 amended on October 14, 2009.
The 1475-km gas pipeline will run through the Mangistau, Aktobe, Kyzylorda and South-Kazakhstan regions.
Construction of the pipeline will be split into two phases: Phase I (2011-2012) entails building of a 1,164-km Bozoy-Shymkent section and compressor station near the Bozoi village (Aktobe region) and Phase II (2014-2015) provides for construction of a 311-km Beyneu-Bozoy section and compressor station in the Karaozek village (Kyzylorda Region).
Earlier Kazakhstan's Oil and Gas Minister Sauat Mynbayev said that the construction of the Beineu-Bozoi pipeline could begin in December, if the pipeline resource supply issue was resolved.
KazTransGas JSC was created in 2000 to manage, maintain and operate the gas pipelines in Kazakhstan. KazTransGas is part of the Kazakhstan national oil and gas company KazMunayGas.