CNPC, KazMunaiGas begin work on China-Kazakh gas line

BEIJING, Dec 23 – China’s CNPC and Kazakh state energy firm KazMunaiGas this week began laying a pipeline spur from southern Kazakhstan that will join the massive Central Asia-China gas trunk line.

CNPC & KazMunaiGaz

CNPC & KazMunaiGaz

Work will be carried out in two stages, with phase one to carry 6 billion cubic metres of gas per year via a 1,164-kilometre line from Bozoi to Shymkent starting end of 2012, China National Petroleum Corp reported on its website

The project would be expanded to 10-15 bcm a year capacity with a total length of 1,475 km, after adding the Beyneu-Bozoi section under phase two work, the report said, without giving a timeframe for the expansion.

CNPC, parent of Hong Kong-listed PetroChina Co Ltd <0857.HK> <601857.SS> , and KazMunaiGas will invest equally in the project.

The report did not say where the gas would be produced.

The spur will be connected to the Central Asia-China gas pipeline that began pumping fuel from Turkmenistan to northwest China’s Xinjiang region in late 2009. China has built thousands of miles of pipeline to transport the fuel to central and eastern regions.

China has agreed to take from Central Asian nations 17 bcm of gas in 2011, or close to 20 percent of the country’s total projected gas demand. (Reporting by Beijing newsroom and Chen Aizhu; Editing by Chris Lewis)