Kazakhstan Gets $1.8 Bln Chinese Loan to Build Gas Pipeline

ALMATY, December 13 (RIA Novosti) – The state-owned China Development Bank (CDB) will provide a $1.8 billion loan to finance a gas pipeline project in Kazakhstan, the KazTransGas company said on Thursday.


The loan will be allocated to Beineu-Shymkent Gas Pipeline LLP, controlled 50-50 by KazTransGas and CNPC.


The project to build the Beineu-Shymkent gas pipeline, which will connect all major Kazakh pipelines into a single network, is being implemented jointly by Kazakhstan’s national oil and gas company KazMunayGas and the China National Petroleum Corporation (CNPC).


The project was agreed by Kazakhstan and China in a bilateral intergovernmental agreement.


The 1,475-km Beineu-Shymkent pipeline, which will link gas-rich western Kazakhstan to consumers in the south, is the second stage of the planned Kazakhstan-China Gas Pipeline.


The first leg of the pipeline, Beineu-Bozoy, is set for completion in October 2013.


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