Kazakhstan attracts Chinese investor for Beineu-Samsonovka pipeline

Wed, 17 September 2008

THE GOVERNMENT of Kazakhstan is planning to attract a Chinese investor to the project for construction of the gas pipeline from Beineu to Samsonovka (from the western to southern region of Kazakhstan), Deputy Prime Minister Umirzak Shukeyev said in August. “It was decided to fund this project 50/50: one half will be allocated from the budget and the other by an investor. Under an inter-governmental agreement with China, the Energy Ministry has offered Chinese investors to take part in this project, and there are normal prospects for this cooperation,” Mr Shukeyev said at a government meeting in Astana.

In February, Kazakh Prime Minister Karim Masimov approved budget funding for the project for construction of the Beineu-Bozoi-Samsonovka gas pipeline and ordered the ministry of economics and budget planning to allocate the required funds into the three-year budget for 2009-2011. The estimated cost of the first phase of the pipeline is $3.4bn, and another $389m is being budgeted for the construction and commissioning of the second phase. The first phase, with a capacity of 5bn cum/yr, is expected to be completed in 2009-2011, and the second, increasing the capacity up to 10bn cum/yr, in 2011-2014. The 1510-km long pipeline is being planned in order to ensure gas supplies to southern region of Kazakhstan, to reduce the country's dependency on gas imports, and to supply the Zhambyl power plant.