BAKU, Azerbaijan, November 2. Kazakhstan's
KazMunayGas (KMG), KMG PetroChem LLP, and China Development Bank
(CDB) have signed a loan agreement worth up to 2.89 billion yuan
(about $400 million) to finance the construction of the country's
first main ethane and propane pipelines, KMG PetroChem said.


The agreement provides for a 15-year credit line to finance the
EPC contract for the construction of ethane and propane pipelines
within a single corridor in the Atyrau region. The loan will be
secured by a corporate guarantee from Samruk-Kazyna JSC.


"The agreement with China Development Bank continues the
long-standing cooperation between Kazakhstan and China in the
energy sector. Today, one of the key areas of this partnership is
the development of Kazakhstan's petrochemical industry. Long-term
financing on attractive terms will ensure the timely construction
of infrastructure for future production facilities and further
strengthen our longstanding partnership," said Diana Aryssova,
Deputy Chair of the Management Board of KazMunayGas.


The project envisages the construction of two pipelines, each
approximately 210 kilometers long, in a shared technical corridor
connecting the Tengiz Gas Separation Complex with Karabatan.


The ethane pipeline, with an annual capacity of 1.6 million
tons, will supply feedstock to the polyethylene plant currently
under construction, while the propane pipeline, with a capacity of
1.1 million tons per year, will supply the existing polypropylene
plant.







"We have already begun construction of the main ethane and
propane pipelines, which will become an important part of the
country's petrochemical cluster. With the comprehensive support of
Samruk-Kazyna Fund and KazMunayGas, we have signed a loan agreement
with China Development Bank. This is an important outcome of our
joint efforts and another step toward securing long-term project
financing. The bank's involvement in developing Kazakhstan's gas
chemical infrastructure demonstrates the confidence of our Chinese
partners and strengthens financial and economic cooperation between
our countries," said Diaz Diyanov, Chairman of the Management Board
of KMG PetroChem.


The EPC contract for the project was signed in November 2025
with a consortium led by China Petroleum Pipeline Engineering Co.,
Ltd., with the participation of CITIC Construction Co., Ltd. and
ChPPI Kazakhstan LLP.


The contract covers engineering and design, equipment
procurement, construction and installation works, and commissioning
of the facilities.