CNPC Finance (HK) Limited’s contributes to $2.25 billion syndicated bridge loan in 2007 for Kazakh and Uzbek Sections of the Central Asia-China Gas Pipeline Project (Linked to Record ID#40393, 54489, 91923, 39997, 91926, 91901, 91917, 54528 #91898, 39955, 70616)

CNPC Finance (HK) Limited’s contributes to $2.25 billion syndicated bridge loan in 2007 for Kazakh and Uzbek Sections of the Central Asia-China Gas Pipeline Project In 2007, CNPC Finance (HK) Limited, a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), and the Hong Kong Branch of Standard Chartered Bank issued 3 bridge loans (with maturities of 1-year or less and relatively high interest rates) worth $2.25 billion to CNPC Central Asia Petroleum Co., Ltd. (中亚天然气管道有限公司) for the Kazakh and Uzbek Sections of the Central Asia-China Gas Pipeline Project.

CNPC Central Asia Petroleum Co., Ltd. — also known as PetroChina Central-Asia Natural Gas Pipeline Co., Ltd — is a special purpose vehicle (SPV) and wholly owned subsidiary of CNPC that was legally incorporated in Hong Kong on November 8, 2007.

The proceeds of the loan were to be used by the borrower to pay for upfront expenses and advance payments associated with the Kazakh Section of the Central Asia-China Gas Pipeline Project and Uzbek Section of the Central Asia-China Gas Pipeline Project (before the SPVs that were established for these two projects — Asia Trans Gas LLC and Trans-Asia Gas Pipeline Company Limited — secured long-term project financing from Bank of China and China Development Bank in 2008).

The purpose of the first project component was to construct the Uzbek section of Line C of the 1873 km Central Asia-China Gas Pipeline.

The Uzbek section measures 529 km in length and its runs parallel to Lines A and B from Gedaim on the Turkmenistan-Uzbekistan border through central Uzbekistan. Line C ultimately ends in Horgos, in the Xinjiang region of China.

With a designed capacity of 25 billion cubic meters per annum, Line C’s pipe diameter is 1,219 mm, 152 mm larger than Line A and Line B. China Petroleum Pipeline Bureau was the EPC contractor responsible for project implementation. It was notified that the project’s official commencement date was August 1, 2012.

Then, on August 10, 2012, the first batch of steel pipes arrived in Uzbekistan. Construction of Line C began on January 16, 2013. The overall welding work for Line C was completed at the end of 2013. Line C went into operation on May 31, 2014 and it was officially commissioned on July 9, 2015.

The purpose of the second project component was to construct the Kazakh sections of Line A and Line B of the 1873 km Central Asia-China Gas Pipeline.

These sections both measure 1300 km in length and they run parallel to each other in Southern Kazakhstan from Shymkent to the Alataw Pass.

The pipeline then crosses the Kazakhstan-China border at Horgos (Xinjiang Province), where it connects to the West-East Gas Pipeline 2. The project also involved the construction of compressor stations along the Kazakh Section of Lines A and B.

China Petroleum Pipeline Bureau, China Petroleum Engineering and Construction Corporation (CPECC), and KazStroyService (KSS) were the EPC contractors responsible for project implementation. A formal commencement ceremony took place on July 9, 2008. However, construction of the Kazakh section of the pipeline did not commence until August 1, 2008.

Line A achieved 'state acceptance' on December 4, 2009. Then, on December 12, 2009, the Kazakh section of Line A was officially inaugurated. Line B achieved 'state acceptance' on October 18, 2010. On February 3, 2011, AGP obtained a general license for the operation of Line A and Line B.

By October 20, 2012, all compressor stations along Line A and Line B of the Central Asia–China Gas Pipeline were operational, enabling the pipeline to transmit 30 billion cubic meters of natural gas annually.

All of the compressor stations along Line A and Line B achieved ‘state acceptance’ between June 2012 and December 2012.