KazTransOil Director General has predicted that the Eastern-European-China oil piepline could reach 20m tpy by 2014.
Kairkeldy Kabyldin announced that commercial talks to upgrade the former Soviet nation's pipeline to full capacity are already underway. According to a pre-existing agreement with China, the Atasu-Alashankou section should be able to deliver up to 20 million tonnes-per-year (tpy) by 2014, up from 14 million tpy in 2011.
According to Kabyldin, construction of two pumping stations at the Atasu-Alashankou section is already underway. Funding perameters and commercial rates, however, are under negotiation as the Kazakhstani oil company still needs around 100 billion tenge ($667 million) to complete the upgrade.
The national energy company is expected to use some of the funds from its People's IPO campaign launched earlier in the year, which will see some 40 million shares offered for sale to Kazakstan's citizens, to finance the project.