CNPC, KazMunaiGaz to expand natural gas cooperation

Nov. 3, 2008 (China Knowledge) - China National Petroleum Corp (CNPC), parent of the country's largest oil producer PetroChina<601857><857>, and KazMunaiGaz, Kazakhstan's national oil and gas company, signed a framework agreement on expanding natural gas and gas pipeline cooperation on Oct. 31, according to a statement released on CNPC's website.

The agreement was inked with the presence of Premier Wen Jiabao and Kazak Prime Minister Karim Masimov, during the 7th prime ministers' meeting of the Shanghai Cooperation Organization held in Kazakhstan's capital Astana.

Under the deal, KazMunayGas will transport the natural gas produced by CNPC from Aktobe oilfield via Phase II of the Kazakhstan-China Gas Pipeline, besides supplying 5 billion cubic meters of natural gas to the pipeline as the two sides agreed earlier.

Meanwhile, the two sides will jointly develop the Urikhtau gas condensate field. On the basis of the fulfillment of gas demand in Southern Kazakhstan, KazMunaiGaz will export 5 to 10 billion cubic meters of natural gas to China.
 
CNPC and KazMunaiGaz will also cooperate on the construction of the Beineu-Bozoy-Kyzylorda-Shymkent section of the Kazakhstan-China Gas Pipeline, which is designed to have an annual transportation capacity of 10 billion cubic meters of natural gas.

In addition, Phase I of the Kazakhstan-China Gas Pipeline will be expanded after assessing the growth of the natural gas resources.