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Kazakhstan-China Pipeline |
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The Kazakhstan-China pipeline will export Caspian oil to serve China's growing energy needs. Construction began on the second segment of the Kazakhstan-China pipeline has been completed in December 2005. The 613-mile-long, 813 mm, pipeline from Atasu, in northwestern Kazakhstan, to Alashankou in China's northwestern Xinjiang region were completed in December 2005. The second stage of this project will have an estimated cost of $850 million. The first section of the Kazakhstan-China pipeline was completed in 2003 and runs wesward across Western Kazakhstan from the oil fields of the Aktobe region to the oil hub of Atyrau. This portion will later be reversed and oil shipment to China will begin in early May 2006. The pipeline is expected to have an initial capacity of around 200,000 bbl/d, which will eventually be expanded to 400,000 bbl/d. The Kazakh and Chinese national oil companies are jointly financing the project, yet the Chinese oil company will be responsible for filling the pipeline from its oilfields in Kazakhstan once it is finished. The final stage of the pipeline will entail the completion of the Kenkiyak-Kumkol pipeline in central Kazakhstan. The Kazakhstan-China pipeline, when all three stages are complete, will span almost 1,860 miles from its start in Atyrau to Alashankou in China. The construction of the pipeline faces major difficulties because it is being laid in seismically active areas where there is a lack of industry infrastructure and many climatic problems, including seasonal temperature extremes and high levels of flood and rain waters. The quantity of crude oil supplied to China through this route will still represent only a small percentage (i.e. less than 5%) of China's expected oil demand by the time the project reaches completion. China imported approximately 30,000 bbl/d from Kazakhstan during the first five months of 2005. |
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