Каспинфо
май 2004

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Название: ПУТИ ТРАНСПОРТИРОВКИ КАСПИЙСКОЙ НЕФТИ (на англ. яз.)
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* Старинный шелковый путь становится нефтяным маршрутом. Заключено соглашение о строительстве нефтепровода для транcпортировки каспийской нефти Казахстана в Китай общей протяженностью 10 тыс. км.
(31.05.2004)


Полный Текст
ПУТИ ТРАНСПОРТИРОВКИ КАСПИЙСКОЙ НЕФТИ (на англ. яз.)
Ancient Silk Road Becomes Oil Route
Xinhua News Agency Tuesday, May 18, 2004



An oil and gas pipeline originating from the Caspian Sea in central
Asia is extending to inland China through the Xinjiang Uygur
Autonomous Region in northwest China.

Chinese experts predict that a 10,000-kilometer-long oil pipeline will
extend across the Asian continent along the ancient Silk Road in two
years.

The natural gas pipeline, to be built by China and Kazakhstan, starts
from the Caspian Sea continental shelf, via Atasu, to Alataw Pass in
Xinjiang of China with a total length of 3,088 km.

The investment of the project is estimated between 2.5 billion US
dollars and 3 billion dollars. Upon its completion, the pipeline will
transmit at least 20 million tons of crude oil annually.

At present, the western section of the pipeline, running 448 km, is
now operational while construction of the eastern section of the
pipeline from Atasu to the Alataw Pass is expected to begin in August
this year and be completed by 2006.

According to the framework agreement signed Monday between the
governments of China and Kazakhstan, the two countries are cooperating
in exploiting oil resources at the Caspian Sea continental shelf.
Provided the region has more proven oil reserves, the annual
transmission capacity of the pipeline is to reach 50 million tons.

"China will have long-term convenient and stable oil supply," said Wei
Qun, deputy manager in charge of the pipeline's construction.

Construction on another two oil pipelines, respectively from Shanshan
in Xinjiang to Lanzhou City in Gansu Province and from Urumqi,
Xinjiang's capital, to Lanzhou will be launched simultaneously with
the oil pipeline from Kazakhstan. Quite a number of cities where the
two oil pipelines will pass through used to be posts of the once
thriving Silk Road in ancient times.

The two oil pipelines, which will cost an investment of 10 billion
yuan (1.2 billion US dollars), are expected to transmit at least 10
million tons of oil a year.

As an oil-rich area, western China has probable oil reserves of 20.9
billion tons and 10.3 trillion cubic meters of natural gas, accounting
for 30 percent of China's total.

The 4,000-km-long west-east gas pipeline, which goes along the ancient
Silk Road, will cross 10 Chinese provinces. Welding on the whole line
has been completed and gas will be provided in January 2005.

Kazakhstan has a verified oil reserve of 4.6 billion tons at the
Caspian Sea continental shelf, one of the three oil-rich regions in
the world. Oil output of the region is expected to reach 100 million
tons by 2010.

Cooperation between China and Kazakhstan in energy exploitation
benefits both sides and will have bright prospects, said Liu Jianchao,
spokesman of China's Foreign Ministry.

The Silk Road was the land thoroughfare linking China with Central and
Western Asia to the eastern shore of the Mediterranean between the
second century BC and the eighth and ninth centuries AD.

The Silk Road went from the present-day Xi'an City, Shaanxi Province,
and traversed westward through the long and narrow strip of Gansu
Province, passed through Dunhuang, famous for its Mogao Grottoes, went
out of the Yumen and Yangguan passes, and entered Xinjiang.

With the start of oil pipeline construction along the Silk Road, this
ancient route of commerce, which had fallen quiet for more than 500
years, will become a booming route again.

http://www.rigzone.com/news/article.asp?a_id=13237

***

From: Institute for War & Peace Reporting
Date: Sat, 22 May 2004 02:51:11 +0200


WELCOME TO IWPR'S REPORTING CENTRAL ASIA, No. 286, May 21, 2004

CHINESE DEAL BOOSTS KAZAK OIL INDUSTRY

But pipeline plan carries dangers as well as benefits, analysts warn.
By Asan Kuanov in Almaty


The construction of a pipeline to transport Kazak oil to China has
clear economic benefits - but many warn that the project is full of
potential hazards that cannot be ignored.

On May 17 in Beijing, Kazak president Nursultan Nazarbaev and his
Chinese counterpart Hu Jintao signed an agreement on the construction
of 1,000 kilometre long section of the route that will bring both
sides closer to completion of the 3,000km oil pipeline.

The billion-dollar pipeline, with an annual capacity of 10 million
tons of oil, is part of a project to bring energy resources from
Kazakstan's western oilfields into China.

It will run from the rail oil terminal facility at the Atasu station
in the central Karaganda region to the Druzhba-Alashankou station on
the Kazak-Chinese border. The first section - Atyrau-Kenkiyak -
running 448km from the western oil region to the east began operating
in March. The funding for the project, which was agreed upon in 1997,
will be borrowed from the Chinese government.

Some observers believe the project will bring great economic and
political advantages.

Kanat Bazarbaev, deputy director of the Centre for Analysis of Public
Issues, told IWPR that implementation of the project would give
Kazakstan a real chance to diversify its export routes. Currently
Astana is dependent on Moscow, as most of its oil is transported to
western markets via a network dating from Soviet times, which goes via
Russia.

"We will be independent in making decisions about export of our oil,"
he said, adding that the pipeline would also solve the issue of
supplying the Pavlodar oil refinery in the north-eastern part of the
country, which the existing pipeline network does not reach.

Gani Kasymov, leader of the Patriot's Party of Kazakstan, agreed. He
noted that Kazakstan has long been seeking alternative ways to access
world markets since so many of the existing options are problematic.
"In Afghanistan there are military operations, Iran is subject to a
United States embargo, and the Baku-Tbilisi-Ceyhan pipeline is a
purely American project," he explained, adding that the latter is not
completely viable for reasons of expense and security.

Kasymov hopes that profits from the Chinese oil deal will trickle down
to the population. He believs that in the wake of a corruption scandal
involving contracts with western oil firms in the early Nineties, the
Kazak authorities will try to demonstrate that their practices are
transparent.

He went on to say that Kazakstan should not limit its ambitions to
China, but also transport oil to South Korea and Japan and take
advantage of what he called "a good historic chance".

Azat Peruashev, leader of the pro-presidential Civic Party of
Kazakstan, pointed out that China, with annual economic growth
exceeding nine per cent, is an ideal long-term customer for
Kazakstan's energy resources.

"China's need for oil will increase annually, therefore construction
of a pipeline meets the interests of Kazakstan," he said, adding that
the development would increase competition among existing and
potential customers for Kazak oil.

But others have expressed doubts over the deal, voicing concern over
many conditions imposed by Beijing - for instance its insistence that
Chinese workers be employed in the construction of the project.

They point to the experiences of local people during the construction
of the first section of the pipeline by the Chinese National Petroleum
Company, which owns 60 per cent of the joint stock company
CNPC-Aktobemunaigaz. According to Jasaral Kuanysh-ali, former head of
information with the Aktobe regional administration in western
Kazakstan, Chinese contractors were paid up to three times more than
the Kazak workers, which caused great resentment.

And Venera Galyamova of the Kazak Institute of Strategic Research
warned that enthusiasm over the project should not lead to Astana
becoming dependent on Beijing.

She fears that China could attempt to monopolise Kazak energy
resources as a way of increasing its energy security. "At present, oil
comes to China from the Middle East, where conflicts are constant and
the role of the United States is strengthening," she said, adding that
as a result of this uncertainty, Beijing may concentrate on Central
Asia and its plentiful natural resources.

Aside from political considerations, the potential impact on the
environment is also giving rise to concerns. Ecological activist Kanat
Berentaev said, "The pipeline will have a large diameter - more than a
metre - which means that a large area will be used up by its
construction. And the project will hinder the migration of saiga
antelopes and other wild animals."

And leader of the green party Tabigat, Mels Eleusizov, worried that
the pressure levels needed to pump oil over such great distances could
lead to accidents involving oil spills. "Before launching this
pipeline, an assessment of its environmental effects should be
conducted," he said.

He also warned that the pipeline could attract separatist militants in
China's north-western Xinjiang region, who might see attacking it as a
way to further their course. "This pipeline will be a convenient
target for the Uighurs to attract attention once again," he said.

Construction of the Kazak pipeline as far as the Chinese border is
expected to be completed by the end of 2005.

Asan Kuanov is an IWPR contributor.