Uzbekneftegaz, CNPC form Asia Trans Gas joint venture

April 14, 2008
Uzbekistan's Uzbekneftegaz and China's CNPC formed a 50-50 JV, to be called Asia Trans Gas, to build and operate the 530-km Uzbek section of the 1,830-km Turkmenistan-China gas pipeline.

Eric Watkins
Senior Correspondent

LOS ANGELES, Apr. 14 -- Uzbekistan's Uzbekneftegaz and China National Petroleum Corp. formed a 50-50 joint venture, to be called Asia Trans Gas, to build and operate the 530-km Uzbek section of the 1,830-km Turkmenistan-China natural gas pipeline.

Construction of the Turkmen trunkline began in 2007, and CNPC has signed a similar JV agreement with Kazakhstan's Kazmunaigaz that covers the construction and operation of the Kazakh section of the pipeline.

The pipeline will cross the 530 km of territory in Uzbekistan, mostly following the route north of a Soviet-era oil pipeline to Shymkent in Kazakhstan. Then it will head east to Almaty and finally to Korgas on the border with China, covering a total of 1,300 km.

Turkmenistan is slated to deliver 30 billion cu m/year of gas to China for 30 years via the proposed line, while Kazakhstan is looking to export a further 10 billion cu m/year of its gas via a branch pipeline connection. Uzbekistan has no plans at the moment to export any of its gas through the line.

The proposed line is considered a major move by Turkmenistan to expand and diversify its gas business. Currently, most Turkmen gas exports through pipelines crossing Russia, mostly in transit to other countries including many in Western Europe. Turkmenistan also exports gas to Iran.

Contact Eric Watkins at [email protected].