Qatari-Kazakh Gas Pipeline Project Gets Another $500 Million

QazaqGaz is placing a second bond tranche worth $500 million to finance construction of the second line of the Beineu–Bozoi–Shymkent main gas pipeline, Orda.kz reports, citing PetroCouncil.kz.

The bonds are being placed for one year with a coupon rate of 5.5 % per annum. The issuance is part of QazaqGaz’s $1.5 billion bond program.

The company placed the first tranche under the program in May 2026, raising $1 billion. If the second tranche is fully placed, QazaqGaz will use the entire announced volume of the program.

According to the terms of the issuance, the money will be used to build the second line of the Beineu–Bozoi–Shymkent gas pipeline, also known as BBSH-2.

The construction work has been divided between three companies. EHZ received one lot, MSS received two lots, and KazStroyService received one more.

In total, the gas pipeline construction was divided into four lots. Each section is about 360 km long. The total length of the second line will be 1452 km.

The project is being implemented by BBSH-2 LLP, a joint venture between QazaqGaz and Qatar’s UCC Holding. The second line is expected to increase the capacity of the gas transmission system, strengthen gas supplies to southern and central Kazakhstan, and improve the country’s energy security.

Construction is scheduled to be completed in December 2026. The total cost of the project exceeds $1 billion.

The Beineu–Bozoi–Shymkent pipeline is one of Kazakhstan’s key gas routes. It connects the western regions with the south of the country and is linked to the export route to China. The second line is needed amid growing domestic gas consumption and new energy projects in southern Kazakhstan.

Original author: Alexander Zhdanov

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