SHANGHAI (Dow Jones Newswires), Feb. 23, 2011
China National Petroleum Corp. and Kazakhstan national oil and gas company KazMunaiGas signed a new oil and gas cooperation agreement Tuesday during the Kazakhstan president's state visit to China, said CNPC.
The move marks the latest effort by China to tap natural gas resources from Kazakhstan, CNPC's main oil and gas production base in Central Asia, to meet robust domestic demand for the cleaner-burning fuel. China has been by far the biggest foreign investor in Kazakhstan's oil and gas industry over the last few years.
The two companies will establish an equally-held joint venture to explore and develop the Urikhtau gas field in Kazakhstan, with gas produced at the field to be transported via the China-Kazakhstan natural gas pipeline, CNPC said in its inhouse newsletter.
Kazakh President Nursultan Nazarbayev arrived in Beijing Monday for a three-day state visit.
CNPC and KazMunaiGas in December began construction on the second phase of the China-Kazakhstan pipeline project, which will link western Kazakhstan with the Central Asia Gas Pipeline.
The 1,475-kilometer pipeline in Kazakhstan will have annual transmission capacity of 10 billion cubic meters, which could be expanded to 15 billion cubic meters.
By Feb. 15, China had received 5.8 billion cubic meters of gas via the Central Asia Gas Pipeline, which ultimately connects to Turkmenistan, CNPC has said.
CNPC has also said that its oil and gas production in Kazakhstan reached a record 30 million metric tons of oil equivalent last year and that it plans to double the transmission capacity of the crude-oil pipeline linking the two countries to 20 million metric tons a year, or 401,600 barrels a day, by 2013.
Copyright (c) 2011 Dow Jones & Company, Inc.
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