China, Uzbekistan To Fast Track Line D Work

China National Oil and Gas Exploration and Development (CNODC) and Uzbekistan’s Uzbekneftegaz (UNG) have agreed to fast track development of the fourth string of the Central Asia-China gas pipeline (CACGP).

UNG reported on July 19 that its officials had held a meeting with representatives of CNODC, the overseas arm of Beijing’s state-owned CNPC, to discuss CACGP’s Line D. The two sides “agreed to take joint measures to accelerate the construction of the gas pipeline,” UNG said.

CACGP’s three existing strings run from eastern Turkmenistan through Uzbekistan and Kazakhstan and terminate in China, boasting a combined flow capacity of 55bn m³/yr. The fourth string is slated to follow a separate path through Uzbekistan, Tajikistan and Kyrgyzstan before entering China, carrying up to 30bn m³/yr of gas.

Line D was initially expected on stream in 2020, but construction has stalled as a result of gas market uncertainty in China. The Uzbek section of the pipeline stretches for 205 km and is being developed by a joint venture between UNG and CNPC. According to UNG, building work will be supported with $800mn of foreign direct investment and loans, presumably from China.