Page 24 - bne_Magazine_July_2017

24 I Cover story bne July 2017
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at prices [as much as] twofold above their real value”, Smirnov notes.
The three major Chinese companies operating in Kazakhstan are CNPC, Sinopec and Citic. CNPC owns
stakes in CNPC-Aktobemunaigaz (94.4%), Mangistaumunaigas
(50%), Buzachi Operating (50%), PetroKazakhstan Kumkol Resources (67%) and Kashagan (8.4%); Sinopec’s subsidiaries include Sazankurak (100%), Prikaspian Petroleum Company (100%) and Sagis Petroleum Company (100%); Citic retains a 50% stake in Karazhanbasmunai.
Chinese companies own several key
oil fields close to the southern town of Kyzylorda and the western city of Akto- be. Even as some of the China-owned oil fields passed peak production or became unfeasible, it began investing into oil processing, including oil refineries in Chymket and Atyrau. Kazakhstan also transits oil and gas through the Cen-
tral Asia-China Gas Pipeline (CACGP) from Turkmenistan and Uzbekistan.
“China will certainly keep trying to strengthen its influence in [Kazakh- stan] in the long run,” Smirnov maintains. Kazakhstan has agreed to supply 5bn cm of gas to China in 2017, compared to yearly volumes of around 300mn cm. Line-C of the Central Asia-China gas pipeline is the most probable candidate for the transport route of the new volumes.
Turkmenistan exports its gas directly to China through Line-A and Line-
B of CACGP. The country delivered 35bn cm in 2016, head of state run
once it reaches full capacity in 2017, should carry 10bn cm of gas from Turkmenistan, 10bn cm from Uzbeki- stan and 5bn cm from Kazakhstan.
Turkmenistan plans to increase its natural gas exports to China to 38bn cubic metres (bcm) in 2017. It had planned to export 65bn cm by 2021, with the CAGP pipeline supplying 55bn cm of gas or one-fifth of
China’s total consumption, but since construction of the final segment, Line-D, came to a halt in early 2017 because of the Chinese economic slowdown, these goals remain murky.
Uzbekistan also managed to secure a niche with its huge $15bn gas deal in 2013, and now exports around 4bn
cm a year to China. Uzbek President Shavkat Mirziyoyev announced in June an agreement with China to boost Uzbek gas exports to 10bn cm. Beijing has also financed two refineries of Kara-Balta and Tokmok in Kyrgyzstan, supplied by CNPC-owned Kazakh oilfields and producing approximately 1.4mn tonnes oil products per annum.
China’s grasp has even managed to reach Tajikistan – the last country one would associate with hydrocarbon riches. China’s CNPC is one of the
three foreign companies with a stake
in the exploration of the barely known Bokhtar field. Bokhtar, covering an area of around 35,000 square kilometres,
is seen as potentially transformational for Tajikistan, with the possibility to put the country on a par with countries like Kazakhstan or Russia in terms
of oil and gas reserves per capita. In 2012, Tethys revealed that the field,
“China’s grasp has even managed to reach Tajikistan – the last country one would associate with hydrocarbon riches”
Turkmengas, Myrat Archayev, said in May. That includes at least 13mn from the China-run Amu Darya Project at Turkmenistan’s Bagtyyarlyk field. In addition, the 1,300km-long Line C,
based on an independent audit carried out by US-based Gustavson Associ- ates, held estimated gross “unrisked” mean recoverable resources of 27.5bn barrels of oil equivalent (boe).
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