CNPC, Uzbekneftegaz Sign Gas Deals

China National Petroleum Corp. (CNPC) will establish a joint venture with Uzbekistan state oil company Uzbekneftegaz to build and operate Line D of the Central Asia-China Gas Pipeline in Uzbekistan, China’s Xinhua news agency reported Thursday citing a statement by the Chinese firm.

Once Line D is operational, the Central Asia-China Gas Pipeline will be able to deliver 85 billion cubic meters of gas annually, CNPC said.

The statement further stated that the two parties also plan to build a natural gas chemical plant at Uzbekneftegaz's Mubarek Gas Processing Plant to produce polyethylene and liquefied gas aiming at the Central Asian markets, according to Xinhua.

The two companies will start the economic and technological feasibility studies soon, CNPC said.

The agreements were signed by CNPC chairman Zhou Jiping and Uzbekneftegaz chairman Shokir Fayzullayev in Beijing on Tuesday during Uzbekistan President Islam Karimov's visit to China.