OREANDA-NEWS. September 25, 2008. On the 42 km of Almaty - Kapchagay motorway the official ceremony, devoted to the start of the gas pipeline “Kazakhstan-China” construction took place, reported the press-centre of KazStroyService.

Laying of the first stone and welding of the first weld of pipeline expressed the start of the largest international project in the sphere of energy regional partnership of the Central Asia countries.

The official ceremony was opened by Sauat Mynbayev, the Head of the Ministry of Energy and Mineral Resources of Kazakhstan.

The ceremony attended Cabinet members of Kazakhstan and China, representatives of “Samruk” State Holding, “KazMunaiGaz” national company, “AGP” (Asian gas pipeline) company, OGCC “KazStroyService” and “China National Petroleum Corporation” (CNPC).

Welding of the first joints of the Kazakhstan-China pipeline construction was fulfilled by OGCC "KazStroyService" JSC specialists on behalf of Kazakhstan and China Petroleum Pipeline Engineering Corporation in Kazakhstan LTD (CPPE) - on behalf of China. These companies are considered as potential contractors for the realization of the project.

Since its formation KSS has executed more than a hundred EPC projects of cross country pipelines, refineries and on shore developments in oil & gas sector of the Republic. The international management, experience of the Kazakhstani experts and equipment based which valued at more than 125 million US dollars, allow the company to realize complex projects and to be a flagship operating company in Engineering, Procurement and Construction sector of the oil-and-gas industry of Kazakhstan.

Kairat Ospankulov, AGP Project management group coordinator, the operator of the gas pipeline construction, said: “KazStroyService” has a great experience in realizing large-scaled international projects on pipeline construction. We do know well that KSS carries its turnkey projects out with a high quality and in time due to international standards they use and the experience of KSS top management. We trust the KSS reputation and will be happy to work together with the company in this strategically important for Kazakhstan and China project”.

The “Kazakhstan-China” (AGP) pipeline project is a part of “Central Asia” (CAGP) project which is a special transit system for transportation of gas throughout three republics: from Turkmenistan deposits through Uzbekistan and Kazakhstan into China.

“The construction of this world largest arterial gas pipeline will give an opportunity for the further securing the Kazakhstan energy safety. It will also track to the development of small and medium businesses in the South regions of the country”, – commented Karsten Trimmer, the General Director of “KazStroyService”.

“Kazakhstan-China” pipeline (AGP) is a system of two parallel pipelines of 1304.5 km. and 1067 mm. diameters. The Kazakhstani part of the pipeline starts on Uzbekistan-Kazakhstan boarder and stretches further 650 km. to the East on the Kazakhstani territory and ends on the boarder between Kazakhstan and China at the Horgos.

The AGP system is being realized to provide the diversification of the transportation ways of hydrocarbons to international markets. It has great significance to Kazakhstan. Thus, “Kazakhstan-China” pipeline means provision of gas supply to Yuzhno-Kazakhstanskaya, Zhambylskaya, Almatinskaya and Kyzylordinskaya oblasts, as well as new work places to citizens of Kazakhstan. The realization of the project will also substantially increase the tax revenues into the country’s budget.

Completion of the construction and beginning of gas delivery are planned for July, 2010. The primary flow capacity will be 4.5 bln. cu m. per 1 year.

On the next stages the gas pumping has to be increased due to the launching of the second thread of the pipeline and the construction of seven compressor stations.

The maximum volume of gas delivery will be of 40 bln. cu m. per 1 year by the end of 2013. Among them 30 bln. cu m. /year will go to China and 10 bln. cu m. /year will be used in Kazakhstan.

Information for editors:
"KazStroyService" is hi-tech Engineering, Procurement and Construction Company. The main company activities are: cross country pipelines, refineries and on shore developments in oil & gas sector. All projects managing to the highest international standards in quality safety and control systems.

The head office is located in Almaty.

KSS is currently active in Kazakhstan and the Caspian Region, and is expanding into India, Turkmenistan, Russia and UAE.

KSS owns 50% of Keppel and PSN, KGNT and 100% of the new KazStroy Engineering India, and actively persuades additional long term acquisitions.

KSS has executed more than 100 projects since 2001 such as construction of “Atasu-Alashanku”, “Karachaganak-Uralsk” pipelines, “Eskene-Kulyk” export gas pipeline and “Kenkiyak-Kumkol” oil pipeline.

2007 unedited turnover is 440 million US dollars

Equipment based valued at more than 125 million US dollars

JSC “OGCC KazStroyService” is a member of IPLOCA (International Pipeline Offshore Contractors Association) since 1st January, 2007.