Kazakhstan’s president has ratified an agreement with China on the development and operation of an oil pipeline linking it to China, the presidential press service said Thursday.
The 2,228-kilometer (1,384-mile) pipeline, running from Kazakhstan’s Caspian shore to Xinjiang in western China, is to be controlled by Kazakhstan state energy company KazMunaiGas and China National Petroleum Corporation.
The agreement defines the mechanisms and terms for the project’s implementation with a view to boosting its capacity, Kazakhstan’s Oil and Gas Ministry said.
Capital investment in the project is expected to reach $820 million.
The agreement establishes a unified tariff for the transportation of Kazakhstan’s oil along the pipeline, regardless of the distance from an entry point.
Oil contract prices will be determined on the basis of international oil quotations and will be uniform on the Kazakhstan-China border.