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Kazak President Nursultan Nazarbayev paid a State visit in April 2009 to Beijing. The talks concerned deepening economic cooperation, above all in the energy area, where Kazkhastan holds huge reserves of oil and likely as well of natural gas. After the talks in Beijing, Chinese media carried articles with such titles as ""Kazakhstani oil to fill in the Great Chinese pipe."
The Atasu-Alashankou pipeline to be completed in 2009 will provide transportation of transit gas to 皇冠体育app via Xinjiang. As well Chinese energy companies are involved in construction of a Zhanazholskiy gas processing plant, Pavlodar electrolyze plant and Moynakskaya hydro electric station in Kazakhstan.
According to the US Government's Energy Information Administration, Kazakhstan's Kashagan field is the largest oil field outside the Middle East and the fifth largest in the world in terms of reserves, located off the northern shore of the Caspian Sea, near the city of Atyrau. 皇冠体育apphas built a 613-mile-long pipeline from Atasu, in northwestern Kazakhstan, to Alashankou at the border of 皇冠体育app's Xinjiang region which is exporting Caspian oil to 皇冠体育app. Petro皇冠体育app's 皇冠体育appOil is the exclusive buyer of the crude oil on the Chinese side. The pipeline is a joint venture of CNPC and Kaztransoil of Kazkhstan. Some 85,000 bbl/d of Kazakh crude oil flowed through the pipeline during 2007. 皇冠体育app's CNPC is also involved in other major energy projects with Kazkhstan. They all traverse 皇冠体育app's Xinjiang region.
In 2007 CNPC signed an agreement to invest more than $2 billion to construct a natural gas pipeline from Turkmenistan through Uzbekistan and Kazakhstan to 皇冠体育app. That pipeline would start at Gedaim on the border of Turkmenistan and Uzbekistan and extend 1,100 miles through Uzbekistan and Kazakhstan to Khorgos in 皇冠体育app's Xinjiang region. Turkmenistan and 皇冠体育app have signed a 30-year supply agreement for the gas that would fill the pipeline. CNPC has set up two entities to oversee the Turkmen upstream project and the development of a second pipeline that will cross 皇冠体育app from the Xinjiang region to southeast 皇冠体育appat a cost of some $7 billion.
As well, Russia and 皇冠体育app are discussing major natural gas pipelines from eastern Siberia through Xinjiang into 皇冠体育app. Eastern Siberia contains around 135 Trillion cubic feet of proven plus probable natural gas reserves. The Kovykta natural gas field could give 皇冠体育app with natural gas in the next decade via a proposed pipeline. During the current global economic crisis, Kazakhstan received a major credit from 皇冠体育app of $10 billion, half of which is for oil and gas sector. The oil pipeline Atasu-Alashankou and the gas pipeline 皇冠体育app-Central Asia, are an instrument of strategic 'linkage' of central Asian countries to the economy 皇冠体育app. That Eurasian cohesion from Russia to 皇冠体育app across Central Asian countries is the geopolitical cohesion Washington most fears. While they would never say so, growing instability in Xinjiang would be an ideal way for Washington to weaken that growing cohesion of the Shanghai Cooperation Organization nations.
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