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On June 30, construction of the Uzbek section of the Central Asia-China Gas Pipeline was launched at a ceremony in Bukhara, Uzbekistan. Zhang Guobao, Vice Chairman of National Development and Reform Commission, Director of the Bureau of Energy and Special Envoy of the Chinese Government, Ergash Shaismatov, Deputy Prime Minister of Uzbekistan, CNPC Vice President Liao Yongyuan and Uzbekneftegaz Chairman Nurmukhammed Akhmedov were present at the ceremony.
Witnessed by Zhang Guobao and Ergash Shaismatov, CNPC and Uzbekneftegaz signed a letter of intent on the same day on cooperation to boost the output of mature oilfields in the Fergana Basin.
In July 2007, CNPC and Uzbekneftegaz reached a heads of agreement on jointly constructing and operating the Uzbek section of the gas pipeline. A joint venture company was later established to run the project.
Background links:
The Central Asia-China Gas Pipeline, starting at the border of Turkmenistan and Uzbekistan and entering China at Horgos in the Xinjiang Uygur Autonomous Region, will travel 1,818 kilometers through central Uzbekistan and southern Kazakhstan (525 kilometers across Uzbekistan and 1,293 kilometers across Kazakhstan).
The pipeline, comprising high-grade large-diameter steel pipes in dual parallel lines, will be constructed by joint ventures between CNPC and Uzbekneftegaz, and CNPC and Turkmengaz.
Construction of the first line is due to be completed by the end of 2009. The second line will be built by 2010. The pipeline will be connected to the second Shann-Jing Gas Pipeline in order to deliver 30 billion cubic meters of natural gas annually to China's Pearl River Delta and Yangtze River Delta regions for 30 years. It is estimated that this pipeline will help enhance the share of natural gas in China's energy consumption mixture by two percent, and cut annual emissions of CO2 by 130 million tons, SO2 by 1.44 million tons, flue dust by 660,000 tons and nitrogen oxide by 360,000 tons.
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