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CNPC and KMZ to double crude oil pipeline from Kazakhstan to China

PetroChina to complete FEED by end of June 2013

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe joint venture between the national oil companies China National Petroleum Corporation (CNPC or PetroChina) and the local KazMunaiGas (KMZ) is working on a second crude oil export pipeline from Kazakhstan to China.

As the existing pipeline, the new one would connect Atyrau on the coast of the Caspian Sea, eastern Kazakhstan, to the Chinese boarder at the city of Alashankou in the Dushanzi District of the Xinjiang Province in China.

CNPC_KMZ_Kazakhstan_China_First_Oil_PipelineChinese national companies are the most important producer of oil and gas in Kazakhstan contributing to reduce Kazakh dependence on Russia.

Providing loans to finance the projects, CNPC is building a network of oil and gas pipelines from West to East to complete the south to north transportation system put in place with Russia.

The agreement for the first oil export pipeline between Kazakhstan and China was signed in 1997.

Long of 3,000 kilometers, it was designed and constructed in three phases by an on-purpose build joint venture between  PetroChina and KMZ.

The first phase started in 2003 between Atyrau to Kenkiyak in order to collect the crude oil from the Caspian Sea and from Aktobe fields.

In 2006, the second phase from the pumping station in Atasu to Alashankou was to connect the Kumkol field in the center of Kazakhstan to the Chinese border.

Kazakhstan_China_Crude_Oil_PipelineThe third phase was to link the first two sections together between Kenkiyak to Atasu into a unique west to east transportation system from the Caspian Sea to the Xinjiang Province in China.

With a capacity of 200,000 b/d (10 million t/y), this first crude oil export pipeline to China was completed in October 2009

In the same time CNPC and KMZ signed a new agreement to double capacity to 400,000 b/d  (20 million t/y).

Currently this crude oil pipeline is transporting 200,000 b/d (10 million t/y) of crude oil to China, and PetroChina and KMZ are planning to ramp it up to 350,000 b/d (17.4 million t/y) next year.

In parallel, CNPC is completing the front end engineering and design (FEED) of a second crude oil export pipeline between Atyrau on the Caspian Sea and Alashankou at the Chinese border.

PetroChina and KMZ study options for new routes

If the starting point in Atyrau and the arrival point at Alashankou remain the same as the first pipeline, the sections in between are submitted to intensive FEED work to compare three options for the route of this second crude oil export pipeline.

The first option is the simplest but the longest as it just follows the actual route of the first pipeline all along the 2,830 kilometers from Atyrau to Alashankou.

The second option is a bit shorter with 2,688 kilometers, where 2,208 kilometers should be the same as the actual pipeline.

In this scenario, the project should be split in five sections with the main portions as following:

PetroChina_KMZ_Atyrau_Alashankou_Second_Oil_Pipeline – 449 kilometers from Atyrau directly to Kenkiyak

 – 794 kilomteres from Kenkiyak to Kumkol

 – 427 kilometers from Kumkol to Atasu

 – 964 kilometers from Atasu to Alshankou

The third option to the shortest line to connect directly Atyrau to Alashankou.

From the 2,515 kilometers length of this scenario, only 1,485 kilometers should be shared with the first pipeline as it should skip Kumkol field to connect Kenkiyak directly to Atasu.

The choice between the three options shall depend on the costs, considering that the first pipeline had requested $3 billion capital expenditure, and on the priority given to the Kashagan field to supply Atyrau compared to the further development of Kumkol field located half way.

The diameter of the pipeline is not yet defined but should be somewhere between 610 and 820 centimeters.

 PetroChina and KMZ will make the decision of the most convenient route for this second crude oil pipeline from Atyrau on the Caspian Sea in Kazakhstan to Alashankou at the Chinese boarder on second half of 2013 in planning commercial operations by 2018.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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2 Comments to “CNPC and KMZ to double crude oil pipeline from Kazakhstan to China”

  1. Dear Sir/Madam,

    I am writing to ask your kind permission to allow me reuse the first map above, in my article on China’s energy diplomacy towards Central Asia and the implications to the Belt and Road Initiative. The article is under peer-review by an academic journal, but I have been asked by the editors to obtain permission to reuse the map in my article.

    I have written an email to helpdesk@2B1stconsulting.com, but it was bounced. I then have to leave a message here to draw your attention. Could you please grant me the permission, or let me know the process required to get it?

    Thank you very much for your kind attention and assistance.

    Xuanli

    • Dear Xuanli,

      Please, feel free to re-use the map for your article.
      Only two conditions would apply:
      -Do not make any modifications of the map. Expose it entirely, as it is in our article.
      -Quote the source of the map in the footnote of your article.

      Best of luck with your article.
      Best regards

      2B1st COnsulting Team

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