Dec. 13 (Bloomberg) -- Kazakhstan won $1.8 billion in Chinese funding to build a natural-gas pipeline from its oil-rich west to the densely-populated south, and may ship supplies to its East Asian neighbor.
China Development Bank Corp. agreed to provide funds in a deal signed Dec. 11 in Hong Kong, Kazakhstan’s state gas shipper KazTransGaz said today in an e-mailed statement.
The 1,475-kilometer (917-mile) pipe from Beineu to Shymkent will be built by China National Petroleum Corp. and state energy producer KazMunaiGaz National Co. The two companies agreed on plans for its construction in 2008 as China sought gas to feed its burgeoning economy. They’ve invested $500 million each in a joint venture to build the link, KazTransGaz’s website shows.
The line will ship as much as 10 billion cubic meters a year, Kazakhstan’s Oil and Gas Ministry said in September. The link may export gas to China once domestic demand is met, the ministry said.
KazTransGaz, based in Astana, is a unit of KazMunaiGaz.
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