RIA Novosti reported that the state owned China Development Bank will provide USD 1.8 billion loan to finance a gas pipeline project in Kazakhstan.
The KazTransGas Company said that the loan will be allocated to Beineu Shymkent Gas Pipeline LLP controlled 50-50 by KazTransGas and CNPC.
The project to build the Beineu Shymkent gas pipeline which will connect all major Kazakh pipelines into a single network is being implemented jointly by Kazakhstan’s national oil and gas company KazMunayGas and the China National Petroleum Corporation.
The project was agreed by Kazakhstan and China in a bilateral intergovernmental agreement. The 1,475 kilometers Beineu Shymkent pipeline which will link gas rich western Kazakhstan to consumers in the south is the second stage of the planned Kazakhstan and China Gas Pipeline.