Kazakhstan Has “Huge Plan” to Expand Energy Links With China

In a wide-ranging interview, Kazakhstan's foreign minister, Kasymzhomart Tokaev, said the Central Asian nation was negotiating with China on an expansion of energy links between the two nations. He also revealed that US President George W. Bush is planning to visit Kazakhstan this year. In addition, Tokaev, who spoke with a EurasiaNet writer during a recent trip to Great Britain, confirmed Kazakhstan's participation in the Baku-Tbilisi-Ceyhan pipeline. The full text of Tokaev's comments follows:

EurasiaNet: Where does China fit in Kazakhstan's energy-export calculus?
Tokaev: We have a huge plan for building a comprehensive [oil] pipeline to China. It is currently in the negotiation process for export [capacity]. [Kazakhstani] President [Nursultan] Nazarbayev will visit China this year, and Chinese president Hu Jintao is also expected to visit Kazakhstan. Both sides are very interested in concluding the project. It will run from Atyrau [in Kazakhstan] all the way to China. It may be concluded in up to two years. It will not take long time [to finish it].

A small section of the pipeline to China has already been built and is operational now. The initial capacity [of this smaller section from Atasu, Kazakhstan, to Alashankou, on Chinese border] is 10 million tons [per year], and is planned to increase to 20 million tons. It is very promising in terms of cooperation [with China] in the energy sector. It is the first pipeline route to China, and the first one totally situated on the territory of producer and consumer states.

We also talk about building a gas pipeline to China. We know that Turkmenistan has already expressed interest [to sell] its own gas to China. Delegations from both sides will have talks on this project. This [project] is very important for cooperation with China. We have no concrete data about the Uzbek gas [potential]. But involvement of Turkmenistan [gas] is very important for us.

EurasiaNet: How do you see Chinese companies' efforts to buy international energy companies and their increasing involvement in Eurasia?
Tokaev: China plays a very important role [in the region]. A number of enterprises operating in Kazakhstan are Chinese. They are expanding their status [presence] and sustain the balance of major powers. However, we also would like to see other countries [coming in to the region]. For example, we are negotiating with India. The general balance of interests must be thoroughly sustained.

EurasiaNet: What is Kazakhstan's stance on participation in the Baku-Tbilisi-Ceyhan (BTC) pipeline?
Tokaev: We have expressed our political willingness to join. We have also prepared an agreement with Azerbaijan on technicalities, barge and [other forms of] transportation [of Kazakh oil] from Aktau to the BTC pipeline. It [working on technicalities] is a complicated process. Some additional talks are needed. But the agreement will be signed as we are close to wrapping up talks. Joining the BTC will be profitable and positive for Kazakhstan.

EurasiaNet: How does Kazakhstan evaluate the potential of the Collective Security Treaty Organization and the Eurasian Economic Community?
Tokaev: Kazakhstan is committed to promoting intra-and interregional integration. In terms of regional partnerships we closely cooperate with Caspian states within the Eurasian Economic Community, Single Economic Space, Economic Cooperation Organization and other bodies. Developing some integration institutions like the Shanghai Cooperation Organization (SCO) and the EEC is important. The SCO has a very important agenda, like [fighting] terrorism and developing regional cooperation.

EurasiaNet: Does Kazakhstan think recent energy developments in the region require a restructuring of relations among Central Asian states? Can your words about possible Turkmen involvement in a gas pipeline to China, and the upcoming Kazakhstani-Uzbek presidential summit be viewed within this context?
Tokaev: We attach particular importance to developing relations with our closest neighbours in Central Asia. ... The Kazakh-Uzbek summit has very clear reasons. It will be the first presidential summit between the two countries. We may have differences on a number of issues, but we are sincerely interested in friendly and predictable relations with Uzbekistan. This is essential and a major factor for stability in the region. Kazakhstan is interested in political stability in Central Asia and the Caspian region. Good cooperation and stable relationships between Kazakhstan and Uzbekistan is, therefore, essential to ensure and sustain stability in the region.

EurasiaNet: How do you see the US role in the region? Does the United States seek to expand strategic cooperation with Kazakhstan?
Tokaev: We have strategic cooperation with the United States in the energy sector. President Bush will visit Kazakhstan this year. Currently we are planning the details of this visit. It is being discussed by diplomats. I think the United States is very important not only for Kazakhstan, but also for all the other countries. There is also the Houston Initiative between the two countries, [a comprehensive business development partnership first agreed upon by Presidents Bush and Nazarbayev in December 2001, and launched in Fall 2002] under which some technical assistance is given to small and medium-sized enterprises (SMEs) in Kazakhstan.

EurasiaNet: How do you view the security setting in the Caspian?
Tokaev: There are different mechanisms [available] to contain the threats to security and stability. However none of them is of a comprehensive nature with universal participation of the Caspian states. We realize that calls on littoral states for disarmament ... would be unrealistic. That is why, in 2004 Astana proposed an initiative to set up a five-sided mechanism of controlling and deterring the armaments on the Caspian, providing a balance of armaments and defining their limits. We believe that these measures will become one of the most reliable means of conflict prevention and peaceful development of cooperation among states. As regards Russia's proposal to set up "CasFor" joint forces for providing security at the Caspian, we believe that this issue requires additional study. [For additional information see the Eurasia Insight archive]. Military cooperation of littoral states at the Caspian is of great importance. However, our activities should fully comply with the broader international context. In this respect, Kazakhstan proposes to jointly elaborate and adopt a political document in the form of a "Pact on Stability on the Caspian Sea," which will envisage such cooperation as: fighting terrorism, aggressive separatism, organized crime, illegal trafficking of weapons and drugs, illegal immigration, and other new threats and challenges.

EurasiaNet: Why does Kazakhstan want to preside over the OSCE?
Tokaev: The OSCE is not a purely European organisation. And Kazakhstan is not purely Asian. An important part of Kazakhstan territory is in Europe. Both Kazakhstan and the OSCE are Eurasian. So certain recognition of this fact has to be made by the [OSCE] member states. What we want to achieve is to draw attention of the European countries to problems in our region. However, we know that there are preconditions [requirements] for chairmanship, and Kazakhstan has made progress in all those areas.