JSC "KazMunayGas" attracted a loan from the development Bank of China in the amount of $ 700 million to complete the construction of the main gas pipeline (MG) "Beineu-Bozoy-Shymkent".

JSC “KazMunayGas” attracted a loan from the development Bank of China in the amount of $ 700 million to complete the construction of the main gas pipeline (MG) “Beineu-Bozoy-Shymkent”. The signing of the loan agreement took place today in Beijing, Kazinform reports.

The loan term is 15 years. The subsidiary structure of KMG-KazTransGas JSC-will direct borrowed funds for the construction of the Beineu-Bozoy line section with a length of 311 km, as well as the Karaozek compressor station in the Kyzylorda region.

Taking into account the attracted $700 million, financing of construction of the gas pipeline “Beineu-Bozoy-Shymkent” is increased to 2.5 billion tenge. The project is aimed at providing the southern region of Kazakhstan with domestic gas, and in the future, it is possible to export raw materials to China.

“This gas pipeline is aimed primarily at internal gas supply. Kazakhstan has agreed on this with the Chinese side. First, we need to fill our market, and if there are surpluses, we will export them to China. According to forecasts, it will be after 2015”, Deputy Chairman of the Board of JSC “KazMunayGas” Daniyar Berlibayev said at the signing ceremony.

According to him, the construction of the MG will be fully completed in 2014. The first stage of construction of the main gas pipeline on the section “Bozoy-Shymkent” with the length of 1143 km was completed in September 2013. Currently, “Bozoy-Shymkent” allows to transport gas in the amount of 2.5 billion cubic meters per year. The new pipeline already provides a technical opportunity to gasify more than 500 settlements located along the gas pipeline.