China and Kazakhstan’s oil and gas partnership at the start of the twenty-first century

Kalyuzhnova, Y. ORCID: https://orcid.org/0000-0002-5781-8837 and Lee, J. (2014) China and Kazakhstan’s oil and gas partnership at the start of the twenty-first century. Emerging Markets, Finance and Trade, 50 (5). pp. 206-221. ISSN 1558-0938 doi: 10.2753/REE1540-496X500515

Abstract/Summary

Over the past decade, cooperation between China and Kazakhstan in the oil and gas sector has developed significantly. For China, security of its energy supply is a key strategic objective. This paper analyzes the evolution of Sino-Kazakh oil and gas relations, assesses their long-term prospects, and explores how Chinese demand for oil and gas could divert Kazakhstan’s hydrocarbon resources from other energy markets. The netback approach has been used to assess the prices that China will need to offer other producers in Kazakhstan. Sino-Kazakh energy and economic cooperation could create a good basis for free economic zones and development of beneficial ties for both countries.