Kazakhstan-China oil pipeline expansion to cost about $200 mln - KMG
ASTANA. May 18 (Interfax) - The Kazakhstan-China oil pipeline expansion will cost about $200 million, said Magzum Mirzagaliyev, the chief executive officer Kazakh national oil and gas company KazMunayGas (KMG).
"The cost of the expansion project will be about $200 million. We intend to start work next year and complete it in two or three years," Mirzagaliyev said on the sidelines of the Kazakh-Chinese talks in Xi'an, according to Orda.kz.
The project will allow Kazakhstan to increase oil exports. Today's throughput capacity of the Atyrau-Kenkiyak and Kenkiyak-Kumkol sections of the oil pipeline is only 6 million tonnes, so KMG and CNPC have signed today an agreement to expand the capacity of these pipelines, Mirzagaliyev said.
Theoretically, Kazakhstan could boost oil exports to 20 million tonnes from today's 1 million-2 million tonnes, according to Mirzagaliyev.
"The throughput capacity of the Atasu-Alashankou section is 20 million tonnes, which, theoretically, could be filled with our oil. Today, the transit of Russian oil is 10 million tonnes, and Kazakhstan exports about 1-2 million tonnes. That is why, we have reached agreement on the expansion [of the pipeline capacity]," the head of KMG said.