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Agreement is expected to generate $1 billion in earnings for the Central Asian country
Kazakhstan has signed a trade agreement with China covering exports of 5 billion cubic meters of natural gas to the Asian giant for a year, a deal that is expected to generate $1 billion in earnings for the Central Asian country, JSC KazTransGas said on Tuesday.
“The contract was signed by JSC KazTransGas and PetroChina International Company Limited on September 30 in Beijing. Gas export deliveries are scheduled to begin on October 15,” the Kazakh company’s press service said in a statement, reports Efe.
“Expected export earnings will be around $1 billion,” JSC KazTransGas said.
The natural gas will come from fields in western Kazakhstan, as well as reserves at JSC KazMunayGas’s underground storage facilities.
Via the Khorgos border point
China will take delivery of the gas via the Khorgos border point, the most important trade frontier between the countries.
“The diversification of transit and export routes for gas transportation in Kazakhstan, as well as the increase in the volume of natural gas exports, are important strategic objectives for the country,” JSC KazMunayGas vice president of transportation and gas trading Kairat Sharipbayev said.
Exports of Kazakh gas to China are aimed at promoting beneficial bilateral relations focused on creating a common infrastructure and establishing trade and transport links in the Eurasian region, the statement said.
The agreement also calls for bolstering bilateral strategic energy relations, as indicated by the production of 25 per cent of Kazakh oil by Chinese companies.