Eric Watkins
Senior Correspondent
LOS ANGELES, July 8 -- Presidents Hu Jintao of China and Nursultan Nazarbayev of Kazakhstan have agreed to form a strategic energy partnership by linking their two nations with oil and gas pipelines.
The immediate focus of their attention is the 998-km oil pipeline extending from Atasu, Kazakhstan, to Alashankou, in China's Xinjiang region (OGJ Online, June 3, 2003). The line, which will begin delivering oil by Dec. 16, forms the second phase of a $700 million oil transportation project, according to a joint statement released by the two governments.
The statement said the completed pipeline will have an initial capacity of 10 million tonnes/year of crude oil, increasing to 20 million tonnes/year by 2008.
The statement also said that China National Petroleum Corp is in negotiations with Kazakhstan's national oil and gas company KazMunaiGas to build a natural gas pipeline linking the two countries.
President Hu was visiting Kazakhstan as the second leg of a two-nation tour, which also included Russia.
During Hu's visit with Russian President Vladimir Putin, China and Russia signed agreements aimed at strengthening their cooperation in exploration, production, and transportation of oil and gas (OGJ Online, July 05, 2005).