Kazakhstan to expand oil pipeline to China

During the VIII Kazenergy Eurasian Forum, the Chairman of the National Chamber of Entrepreneurs of Kazakhstan, Timus Kulibaev, announced thatAtasu-Alashankou section of the Kazakhstan-China pipeline will be expanded to meet the country’s increasing energy needs.

Atasu-Alashankou section

The Atasu-Alashankou section will be expanded from 12 million tpy to 20 million tpy of oil by the end of 2013.

Kazakhstan’s energy minister, Uzakbay Karablin, said “We have built two additional pumping stations at the Atasu-Alashankou section, and this section will be able to carry up to 20 million tpy by year-end…We need to grow the capacity of the remaining sections... and expect the whole route from Atyrau to Alashankou to reach a 20 million tpy capacity from 2015."

Contracts awarded to further the pipeline’s potential

Technology supplies in the west have been awarded contracts to further the pipeline’s potential. The global engineering and construction company, Ergil, will supply its pig handling systems to increase the pipeline’s capacity.

British power systems company Rolls-Royce signed a US$ 175 million contract to provide gas turbine pipeline compressor units for use in the pipeline. Andrew Heath, Rolls-Royce, President – Energy, said: “Rolls-Royce technology is at the heart of China and Central Asia’s growing energy infrastructure. This contract strengthens our relationship with AGP and with Kazakhstan where we have established a strong track-record of reliable delivery.”

Kazakhstan has also been in talks with Russia for its crude oil to run through the pipeline to supply China’s growing energy needs. Volumes of around 7 million tpy would be supplied to CNPC under the terms of a US$ 270 billion year deal with Russian firm Rosneft. Supplies are expected reach US$ 30 million tpy by 2018.

Kazakhstan-China pipeline

The Kazakhstan-China pipeline is part of the 1833 km Central Asia-China gas pipeline, the first pipeline to bring Central Asian natural gas to China.The 2228 km pipeline starts in Atyrau, Kazakhstan, and runs through Alashankou into China’s Xinjang province. After that, it joins Chinese oil firm CNPC’s pipeline network.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/08102013/kazakhstan_to_expand_oil_pipeline_to_china/