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.
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.
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.
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.
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.
According to the forecasts, Kenkiyak - Kumkol section alone will yield 60 billion tenge in taxes between 2010 and 2020.