Kenkiyak - Kumkol
Kenkiyak - Kumkol passes in three oblasts of the Republic of Kazakhstan: Aktobe, Kyzylorda and Ulytau.
To ensure implementation of the Kazakhstan-China oil pipeline project it was necessary to take care of oil supplies from the West Kazakhstan and Aktobe regions to the Chinese market.
As part of settlement of this issue, on December 20, 2006 China National Petroleum Corporation (CNPC) and KazMunayGaz NC JSC signed the Agreement on main principles of construction of the second stage of Kazakhstan-China oil pipeline.
In the second quarter of 2007 a tender was announced for development of feasibility studies to support the project “Second stage of Kazakhstan-China oil pipeline construction”. Kazakh Institute of Oil and Gas Transport was awarded the mentioned scope. This project was the base for construction of the pipeline at Kenkiyak - Kumkol section and for expansion and upgrade of accompanied pipeline systems.
Kenkiyak - Kumkol
Under this project works were launched to construct the second phase of the pipeline at the section Kenkiyak - Kumkol, as well as to expand and renovate the related pipeline systems.
Atasu - Alashankou pipeline (first stage) and Kenkiyak - Kumkol pipeline (second stage) projects were implemented on a parity basis by Chinese and Kazakh parties. Again the general contractors were:
1) KazStroyService OGCC JSC for construction of the section 483 km from Kenkiyak station to Aralsk area
2) CPPE was chosen for construction of 311 km of the pipeline to Kumkol station.
On December 11, 2007 the Kenkiyak - Kumkol pipeline project was presented at Kenkiyak initial pump station in Aktobe. Construction was completed in September 2009.
Technology
Throughput capacity
Throughput capacity of Kenkiyak-Kumkol pipeline at the initial stage was 10 mln tons a year, with capability to increase further up to 20 mln tons.
Pipeline location
Location of the pipeline facilities was selected with due respect to the rational use of land, compliance with the oil transportation process, engineering support, safety of local population, industrial, agricultural enterprises and environment, as well as preservation of historical, cultural heritage and nature.
Difficulties during the pipeline construction
The constructors of Kenkiyak-Kumkol pipeline encountered a number of challenges. Pipes had to be laid on a rough terrain (sand dunes, sor-affected areas, as well as irrigated and plowlands). According to the project, the pipeline crossed Mugalzhar mountains known for their big elevation difference, which required blasting works.
Kenkiyak - Kumkol pipeline project involved:
The assigned tasks
The amount of taxes actually paid for the period 2010-2022 for the Kenkiyak-Kumkol section, taking into account the attraction of foreign currency loans for the implementation of the Kenkiyak-Kumkol and Atasu-Alashankou trunk oil pipeline construction project, was lower than the preliminary estimate, due to the devaluations of the national currency against the US dollar during the specified period and the formation, as a result, of a significant loss from exchange rate difference, which ultimately affected the tax base of the Partnership. As a result, the Partnership for the specified period on the Kenkiyak-Kumkol section paid taxes in the amount of about 35.5 billion tenge in favor of the state budget of the Republic of Kazakhstan.