A long-term issuer default rating of “BBB-” with the “Stable” outlook has been assigned to Beineu-Shymkent Gas Pipeline LLP (hereinafter “GBS”) by Fitch Ratings International Rating Agency. The long-term rating of AA + (kaz) has been assigned to the gas pipeline according to the national scale.
BSGP is a 50/50 joint venture between KazTransGas JSC and CNPC China National Petroleum Gas Corporation through the gas pipeline of Trans-Asia Gas Pipeline Company Limited. At that, Fitch Ratings Rating Agency believes that Kazakhstan Operator in the gas industry performs the extensive operational and financial control of BSGP LLP.
The ratings assigned to BSGP reflect Fitch’s opinion on the strong relationship between the Company and its direct Parent Company, KazTransGas JSC, which provides great financial support through intercompany loans and guarantees.
In addition, as Fitch Ratings notes BSGP LLP has a strong position as the only route for Kazakhstan to export gas to China and supply its own gas to the southern regions.
Beineu-Bozoy-Shymkent Gas Pipeline is one of the largest projects in the Kazakhstan gas industry implemented by Independent Kazakhstan and has the status of “strategic national wealth”.
According to the information of Fitch Ratings, this entails restrictions to privatization, and as a natural monopoly, the activity of BSGP fall under state monitoring and control. This gives the Company the right to exempt from corporate income tax and property tax until the full repayment of the debt used for the construction of the pipeline. KazTransGas JSC is the National Operator of Kazakhstan in the field of gas and gas supply. KazTransGas JSC group of companies includes enterprises and organizations of gas producing and transporting and selling gas and products of its processing.
Press service of KazTransGas JSC Tel: 8 (7172) -55 23 16