The implementation of this financing agreement provides strong financial support for Kazakhstan's first liquid ethane propane long-distance pipeline. This 210 kilometer pipeline connects the oil field gas source with the petrochemical industry park, filling the transportation gap of local oil and gas deep processing. The project is undertaken by a consortium of Chinese funded enterprises as the general contractor. It started construction in October this year and is steadily advancing towards the goal of production by the end of 2028. While driving Chinese technology and equipment to go global, it continues to create employment opportunities for the local area.

Project Overview

The total length of the project pipeline is 210 kilometers, with an annual transmission capacity of 1.6 million tons of ethane pipeline to supply the under construction polyethylene project, and an annual transmission capacity of 1.1 million tons of propane pipeline to ensure stable supply of raw materials for the polypropylene project. The EPC general contracting is undertaken by a consortium of Chinese funded enterprises such as China Petroleum Pipeline Bureau and CITIC Construction, and it is expected to provide about 1300 local employment opportunities during the construction phase. The financing adopts a combination model of export buyer's credit plus RMB loan plus Sinosure underwriting plus sovereign fund credit support.

Collaborative Value

This project is a practical project to implement the results of the 2nd China Asia Summit, helping Kazakhstan transform its oil and gas resource advantages into industrial advantages and improve the conversion rate of associated gas processing. After the completion of the project, it will improve the local petrochemical midstream and downstream industrial chain, open up the transportation channel from Tengiz Oilfield to Atyrau Petrochemical Park, and promote the increase of added value of petrochemical products in Kazakhstan. Keywords: Engineering Construction, ethane propane pipeline, the Belt and Road

Long term significance

China Development Bank has previously provided financing support for local polypropylene projects, and this time it continues to increase upstream and downstream supporting pipelines, extending the energy cooperation chain. The project will continue to consolidate the foundation of China Kazakhstan oil and gas industry chain cooperation, drive domestic engineering equipment and technical services to the sea, and inject stable energy cooperation momentum into the high-quality joint construction of the the Belt and Road.Editor/Li Xiaohua