Kazakhstan and CNPC discuss long-term gas supply to China

The two sides also discussed the construction of a new gas pipeline to China / Photo: Shutterstock

During an official trip to Beijing, Kazakhstan’s Energy Minister Almasadam Satkaliyev met with the heads of leading Chinese oil and gas companies, China National Petroleum Corporation (CNPC) and State Power Investment Corporation. Together with the Chairman of the Board of Directors of CNPC, Dai Houliang, they discussed the most important issues related to the development of the oil and gas sector in Kazakhstan.

«The two sides discussed the construction of a new line of the Beineu-Bozoy-Shymkent gas pipeline and the signing of a long-term contract for Kazakhstani gas exports. They paid particular attention to expanding the Shymkent refinery’s capacity,» the Ministry of Energy said in a statement.

As a result, Kazakhstani officials and CNPC representatives agreed to continue their collaboration in the oil and gas sector, confirming their intention to make it mutually beneficial.

Furthermore, during negotiations between Liu Minsheng, Chair of the State Power Investment Corporation and the Kazakhstani energy minister, the two sides decided to expand bilateral cooperation in the field of renewable energy sources and discussed the future prospects of the energy sector in general.

In 2023, Kazakhstan supplied 5.8 billion cubic meters of gas to China, which is 15.5% more than in 2022. QazaqGas is the largest exporter of Kazakhstani gas to the PRC.

CNPC is partnering with KazMunayGas to launch nitrogen fertilizer production for $1.5 billion. The two companies are also going to establish carbamide production based on the Zhanazhol gas processing plant in the Aktobe region of Kazakhstan.

CNPC is the parent company of CNPC Exploration and Development Company Ltd, which controls CNPC-Aktobemunaigas. Last year, this company managed to boost its share in the domestic market of Kazakhstan from 35.6% to 39.3%.

CNPC-Aktobemunaigas is the sole operator of several fields in the Aktobe region (Zhanazhol, Kenkiyak post-salt, Kenkiyak pre-salt and North Truva) and has contracts for exploration at the Teresken-1 and Teresken-2 fields. On the other hand, KMK-Munai, a subsidiary of CNPC-Aktobemunaigas, has contracts for subsoil use at the Kokzhide, Kumsai and Mortuk deposits.