CNPC's entry into Kashagan appropriation project not to affect Kazakhstan Caspian Transportation System

ASTANA. July 17. KAZINFORM The entry of China's CNPC into a Kashagan appropriations project will not affect the Kazakhstan Caspian Transportation System, according to a senior Kazakh oilman.

The capacity of a pipeline to China will not exceed 20 million tons of oil per year, when Kashagan hits its production peak, the volume of production here will reach to 51 million tons of oil per year.

"This is simple arithmetic; Kazakhstan will need Kazakhstan Caspian Transportation System for the appropriation of Kashagan anyway. Not all of the oil will go to China", the interlocutor noted.

As is known, the timing of the construction of the Kazakh Caspian Transportation System was postponed from 2012 to a later date, as it is related to Kashagan, exactly by this moment, when the field will provide oil close to its peak value- 1.2 million barrels of oil per day.

The Kazakhstan Caspian Transportation System project mainly was created for the delivery of oil, namely from Kashagan. Nevertheless, the processing timing was repeatedly postponed. Recently,experts have predicted that the oil will begin to flow in 2014.

As ex-head of JSC NC "KazMunaiGas" Lyazzat Kiinov told the foreign press, Chinese energy giant CNPC will buy a share of Kashagan on the shelf of the Caspian Sea, and pay no more than 5 billion dollars for it. The seller of the package will be "KazMunaiGas", while KMG will receive a package from another party- Conoco Phillips, which will leave the project.

In addition, as it became known to Trend, there is talk in oil and gas circles that China offered free access to the Chinese port of Haylugan to Kazakhstan as an additional bonus. Haylugan has direct access to the Pacific Ocean, Kazinform refers to

Two Western companies, Shell and ENI are NCOC shareholders, the international consortium is conducting negotiations on the delivery of Kashgan oil to the Chinese market, namely to the Sichuan refinery.

Currently reading