Via KazInform, a report on a deal between the China National Petroleum Corp. and Kazakhstan’s Samruk-Kazyna Group for the joint development of the oil and gas industry in Kazakhstan. CNPC will help expand the throughput capacity of two Kazakh oil pipelines and participate in the construction of the second strings of a natural gas pipeline and a gas processing plant.

Samruk-Kazyna Group and China’s CNPC will jointly develop Kazakhstan’s oil and gas industry, Kazinform reports.

Relevant agreements were reached today at a meeting in Astana between Samruk-Kazyna group of companies and China National Petroleum Corporation (CNPC). From the Kazakh side, the negotiations were led by the head of the Fund, Nurlan Zhakupov, from the Chinese side, by CNPC President Hou Chijun. They discussed current issues of interaction and reached new agreements for the future on such projects as:

– Expansion of the throughput capacity of the Kenkiyak-Atyrau oil pipelines (reverse mode) by 6 million tons per year and Kenkiyak-Kumkol by 5 million tons per year. The parties agreed to conduct preliminary studies

– Increase in 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 creation of the second line of the Beineu – Bozoi – Shymkent gas pipeline (15 billion cubic meters per year). It was decided to create a joint working group of QazaqGaz and CNPC, as well as by December 31 to develop a feasibility study and determine preliminary sources of funding

– Construction of a gas processing plant at Kashagan with a capacity of 4 billion cubic meters of gas per year. It was decided to create a joint working group of QazaqGaz and CNPC.