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Print Edition> Business
UPDATED: November 24, 2014 NO. 48 NOVEMBER 27, 2014
Brightening Up the Silk Road
China-Central Asia oil and gas pipelines will facilitate the development of the Silk Road Economic Belt
By Wang Jun
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GO FARTHER: A section of the China-Central Asia gas pipeline crosses the Ili River in Kazakhstan. This is the first time the China Petroleum Pipeline Bureau under CNPC has completed projects running through rivers in Kazakhstan (JIN TIAN )

According to him, through cooperation with Chinese companies, Central Asian countries have gained funds and technologies to accelerate the development of their petroleum industries. Through cooperation with Central Asian companies, CNPC has paid more than $30 billion in taxes to the host countries of resources and has created 34,000 job opportunities for local people. The company has also spent more than $200 million on improving the public welfare of local people.

Broad prospects

At present, CNPC's China-Central Asia oil and gas pipeline projects include three gas pipelines—lines A, B and C—and a China-Kazakhstan oil pipeline, said Wu Junli, spokesman of China National Oil and Gas Exploration and Development Corp., a subsidiary of CNPC. According to him, construction of Line D of the China-Central Asia gas pipelines is already in the works, and the expansion project of the China-Kazakhstan oil pipeline is in process. "Energy cooperation between China and Central Asia keeps strengthening," said Wu.

According to Cao Yaming, General Manager of CNPC Trans-Asia Gas Pipeline Co. Ltd., Line D runs through Turkmenistan, Uzbekistan and Kazakhstan and ends in China's Xinjiang Uygur Autonomous Region. A total length of 1,000 km, the line has 840 km outside China. With an expected delivery capacity of 30 billion cubic meters of natural gas every year and a planned investment of $6.7 billion, Line D is expected to be completed by the end of 2020.

"The same as lines A, B and C, Line D is also a project that will benefit the host countries of resources, countries along the line and energy consuming countries. Different from the other three lines, Line D enters China from the south of Xinjiang, and gas imported through this line will mainly input to the market of north China," said Cao, adding that this line is of great significance to guarantee China's energy security, boost economic development in south Xinjiang and control air pollution in north China.

Investments in the countries along Line D are all big projects in these countries. It will bring thousands of job opportunities and create billions of dollars of income for these countries within the 30 years of operational period.

Cao said Line D will run through Tajikistan and Kyrgyzstan for the first time, and together with lines A, B and C that run through Turkmenistan, Uzbekistan and Kazakhstan, all five Central Asian countries will be connected with China by the China-Central Asia gas pipelines.

By 2020 when Line D will be completed and put into operation, the China-Central Asia gas pipelines will have a total delivery capacity of 85 billion cubic meters per year, and together with the oil pipelines, the annual equivalent weight of oil and the gas delivery capacity will total 90 million tons each year.

According to Wu, this year is the 17th year CNPC has entered the energy market of Central Asia. The company has established complete petroleum industrial chains including exploration, pipeline transportation, oil refining and sales, setting an example for the company's overseas operations. "Central Asia will be of strategic importance to CNPC's overseas operations," Wu said.

Email us at: wangjun@bjreview.com

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