Kazakhstan secures $400M loan from China Development Bank for pipelines

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 pipelines within a single corridor in the Atyrau region. The loan will be secured by a corporate guarantee from Samruk-Kazyna JSC. The project includes two pipelines, each about 210 kilometres long, connecting the Tengiz Gas Separation Complex with Karabatan. The ethane pipeline, with an annual capacity of 1.6 million tons, will supply the polyethylene plant under construction, while the propane pipeline, with a capacity of 1.1 million tons per year, will supply the existing polypropylene plant.

Diana Aryssova, Deputy Chair of the KazMunayGas Management Board, described the deal as a continuation of long-standing Kazakh-Chinese energy cooperation. Diaz Diyanov, Chairman of the KMG PetroChem Management Board, said the bank's involvement demonstrates the confidence of Chinese partners. The EPC contract was signed in November 2025 with a consortium led by China Petroleum Pipeline Engineering Co., Ltd.