Kazakhstan Starts Phase One of Kenkiyak-Atyrau Pipeline
KazMunaiGaz and CNPC signed an agreement for the construction of the Kenkiyak-Atyrau pipeline in 2001. The parties set up Northwestern Pipeline Company MunaiTas in October 2001 to implement the project. The general contractor for this project was a division of Gazprom, Stroitransgaz, and the subcontractor was Kazstroiservis.
The Kenkiyak-Atyrau pipeline is an important element in the implementation of the Western Kazakhstan-China global export project that is of strategic importance to the republic. In particular, in 2005 MunaiTas plans to use the pipeline in reverse as the main section of the Kazakh-Chinese transcontinental oil pipeline to supply 15 million tons of oil per annum to northern China, under a Kazakh-Chinese intergovernmental agreement.
Currently, oil produced by CNPC-Aktobemunaigaz at the Zhanazhol and Kenkiyak fields is transported through the Aktobe-Orsk pipeline to Russia, by rail to China and also through the port of Aktau on the Caspian.
CNPC-Aktobemunaigaz, in which China National Petroleum Corporation owns over 60% of the shares, produced over 4.3 million tons of oil in 2002. The company plans to increase production to 5.2 million tons in 2003. It is forecast that in 2005 the company's production will amount to 5.5 million tons. Kazakhstan produced 47 million tons of oil in 2002 and plans to increase this to 52 million tons in 2003.