The management of the Fund Group of Companies and the China National Oil and Gas Corporation (CNPC) have reached relevant agreements today at the meeting in Astana. Nurlan Zhakupov, the Head of the Fund, has led the negotiations on behalf of the Kazakhstan party, and Mr. Hou Chijun, the CNPC President, on behalf of the Chinese party. They discussed current issues of cooperation and reached new agreements for the future. For example, KazMunayGas and CNPC plan to expand jointly the capacity of the Kenkiyak-Atyrau oil pipelines in reverse mode by 6 million tons per year, as well as the Kenkiyak-Kumkol highway by 5 million tons per year. The parties agreed to conduct preliminary studies.
The plans also provide for increasing production at the Shymkent refinery by 6 million tons per year. The parties agreed to analyze the resource base, sales market and business model.
Participation of CNPC in the construction of the second line of the Beineu-Bozoi - Shymkent gas pipeline with a capacity of 15 billion cubic meters per year was also the topic of the discussion. It was decided to create a joint working group of QazaqGaz and CNPC, as well as to develop a feasibility study and determine preliminary sources of financing for the project by December 31. In addition, the joint plans include the construction of a gas processing plant at Kashagan with a capacity of 4 billion cubic meters of gas per year. The joint QazaqGaz and CNPC working group will also deal with this issue.
