China Development Bank provides financing for Kazakhstan petrochemical pipeline project

China News Service, Beijing, November 9th China Development Bank (hereinafter referred to as CDB) announced on the 9th that it has recently signed a financing agreement for a 210-kilometer ethane and propane pipeline construction project with Kazakhstan’s National Oil and Gas Company and Kazakhstan’s National Petroleum and Gas Chemical Company. The loan amount is 2.89 billion yuan, guaranteed by the Samruk-Kazena National Welfare Fund.

The contracted project will build Kazakhstan's first long-distance liquid ethane and propane pipeline, which will be used to transport ethane and propane from the associated gas in the Tengiz Oilfield to the National Industrial and Petrochemical Technology Park Special Economic Zone in Atyrau Oblast. Among them, the annual transportation capacity of the ethane pipeline is 1.6 million tons, which will provide raw materials for the Silleno polyethylene project under construction; the annual transportation capacity of the propane pipeline is 1.1 million tons, which will ensure the supply of raw materials for the completed KPI polypropylene project.

It is reported that the EPC general contracting contract for this project was signed in November 2025, and was jointly participated by a consortium of Chinese-funded enterprises such as China Petroleum Pipeline Bureau Engineering Co., Ltd. and CITIC Construction Co., Ltd. In October this year, the pipeline officially started construction and is scheduled to be completed and put into operation by the end of 2028. It is expected to create approximately 1,300 local jobs during the construction period.

Diana Alisova, deputy chairman of the Management Committee of Kazakhstan’s National Oil and Gas Company, said that the petrochemical industry is one of the key areas of cooperation between Kazakhstan and China. CDB's financing will effectively ensure that the project construction is progressed on schedule and further consolidate the good cooperative relationship between the two parties.

The head of the International Project Department of China Development Bank said that China Development Bank had previously provided financing support for the KPI polypropylene project. This support for the construction of the ethane and propane pipeline project will help Kazakhstan transform its resource advantages into industrial development advantages, and drive Chinese equipment and engineering services to "go global", further solidify the foundation for full-chain cooperation in the energy field between the two countries, and inject new momentum into the high-quality joint construction of the "Belt and Road".