Saturday, April 20, 2013

China's deal with Kazakhstan increases capacity of oil pipeline

http://www.geostrategy-direct.com/geostrategy-direct/secure/2013/04_24/ba.asp?

 

China's deal with Kazakhstan increases capacity of oil pipeline

Kazakhstan inked a key energy deal with China on April 6 to increase the carrying capacity of a crucial oil pipeline by 100 percent, from 10 million tons to 20 million tons a year.

The deal was signed between China's oil monopoly CNPC and Kazakhstan's energy giant KazMunaiGas National Oil and Gas Company.

The existing oil pipeline stretches 1,200 kilometers or 750 miles, connecting Kazakhstan's oil fields to China. It has been in operation since 2006.

Between 2006 and 2012, a total of 50 million tons of crude oil have been piped into China through this line.

In 2012, the pipeline carried 10 million tons of crude to China. But China wants more and desires 20 million tons per year starting 2013.

Kazakhstan currently produces 82 million tons of oil a year but is expected to increase its output to 120 million tons by 2020. China is eager to grab a larger share of that output and has helped financed the Kazaks' construction of the new oil field at Kashagan, one of the largest oil fields in the world.

 

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