On Ratification of the Protocol on Amendments and Additions to the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on Cooperation in the Construction and Operation of the Kazakhstan-China gas Pipeline dated August 18, 2007

Law of the Republic of Kazakhstan dated July 15, 2010 No. 330-IV

     To ratify the Protocol on Amendments and Additions to the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on Cooperation in the Construction and Operation of the Kazakhstan-China Gas Pipeline dated August 18, 2007, signed in Beijing on October 14, 2009.

     President       Of the Republic of Kazakhstan N. Nazarbayev

  Protocol on Amendments and Additions to the Agreement between By the Government of the Republic of Kazakhstan and the Government of the Chinese Agreement of the People's Republic of China on cooperation in the construction and operation of the Kazakhstan-China gas pipeline dated August 18, 2007

(Bulletin of International Treaties of the Republic of Kazakhstan, 2010, No. 6, Article 62) (Entered into force on September 16, 2010)

     The Government of the Republic of Kazakhstan and the Government of the People's Republic of China (hereinafter referred to as the "Parties"), based on article 16 of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on Cooperation in the Construction and Operation of the Kazakhstan-China Gas Pipeline dated August 18, 2007 (hereinafter referred to as the "Agreement"), for the timely and successful implementation of the project for the construction of a gas pipeline from Western Kazakhstan to southern Kazakhstan, we have agreed on the following:

  Article 1

To make the following changes and additions to the Agreement:       1) in article 1:       in the third paragraph, the words "- Khorgos (on the territory of the PRC)." replace with the words "the area of the Khorgos point on the territory of the People's Republic of China (hereinafter referred to as the First section);"; the fourth paragraph after the words "per year" should be supplemented with the words "(hereinafter referred to as the Second section)"; in the fifth paragraph, the words "the first section of the Gas Pipeline" should be replaced with the words "The first section";       and also add the following paragraph:       "The Parties instruct the Authorized Organizations to develop a justification for investments related to the Second Site and agree in a separate agreement concluded between the Authorized Organizations on the Second Site (hereinafter referred to as the SOP) on the phased construction of the Second Site, including determining its route, capacity and amount of project financing, as well as determining the operator of the Second Site.";       2) in Article 3, after the first paragraph, add the following paragraph: "The Parties will take appropriate measures to further optimize design solutions."; 3) in Article 4: in the third paragraph, after the word "Gas Pipeline", add the words ", organization of regular mutual exchange of information and prompt notification of emergency situations on the Gas Pipeline, in including of a cross-border nature";       after the third paragraph, add the following paragraph:       "The parties will develop measures for the sustainable operation of the Gas Pipeline in the event of an earthquake or other emergency situations.";       after the paragraph "to assist in granting, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, the necessary land rights, permits and licenses required by the legislation of the Republic of Kazakhstan for the construction and operation of the Gas Pipeline, including, but not limited to, those provided for by the legislation of the Republic of Kazakhstan on environmental protection;" add the following paragraphs:       "to ensure that an Authorized organization of the Kazakh side or an affiliated company (affiliated companies) of this Authorized Organization provides 5 (five) billion rubles. m3 of gas per year for a period of at least the payback period of the Second Section for concluding agreements (agreements) on gas transportation along the Second Section on the "ship or pay" principle with an organization established in the Republic of Kazakhstan for the implementation of the Second Section project, necessary for project financing, while The Kazakh side will provide acceptable ways to ensure the execution of such agreement(s);       to ensure the possibility of transporting volumes of gas belonging to an Authorized Organization of the Chinese side or an affiliated company (affiliated companies) of this Authorized Organization along the section of the Bukhara-Ural main gas pipeline along the route from compressor station 13 to Bozoi compressor station for access to the Second Section and the First section.;       to ensure the transfer of subsurface use rights to the Urikhtau gas condensate field to a joint venture established by an Authorized Organization of the Kazakh Side (or an affiliated company of an Authorized Organization of the Kazakh Side) together with an Authorized Organization of the Chinese Side (or an affiliated company of an Authorized Organization of the Chinese Side).";       after the paragraph "to assist in granting, in accordance with the procedure established by the legislation of the People's Republic of China, the necessary land rights, permits and licenses required by the legislation of the People's Republic of China for the construction and operation of the Gas Pipeline, including, but not limited to, those provided for by the legislation of the People's Republic of China on environmental protection;" add the following paragraph:       "to assist the organization established in the Republic of Kazakhstan for the implementation of the Second Site project in organizing project financing for the construction of the Second Site in accordance with the SOP, provided that an Authorized organization of the Kazakh side and an Authorized Organization of the Chinese Side make 500,000,000 (five hundred million) US dollars each as a one-time contribution to the authorized capital of an organization established in the Republic of Kazakhstan to implement the Second Section project."; 4) in Article 5: in the first paragraph, replace the words "first section of the Gas Pipeline" with the words "First section"; in the second paragraph, replace the word "first" with the word "First"; in the third paragraph, replace the words "second section of the Gas Pipeline" with the words "Second section";       5) in Article 6: in the first paragraph, the word "Gas pipeline" should be replaced by the words "First section"; the second paragraph should be worded as follows:       "The tariff for transit gas transportation services for the First section through the territory of the Republic of Kazakhstan and the tariff for gas transportation services for the First Section through the territory of the Republic of Kazakhstan for export purposes are determined on a contractual basis between the shippers and the owner of the First section.";       add the following paragraph:       "The competent state body of the Republic of Kazakhstan, which controls and regulates activities in the fields of natural monopolies, approves, in accordance with the legislation of the Republic of Kazakhstan on natural monopolies, a single tariff calculated for gas transportation through the Second Section for consumption in the territory of the Republic of Kazakhstan, for gas transportation services through the Second Section for export purposes and for transit gas transportation services through The second section, taking into account the costs of construction and operation of the Second section, including, but not limited to, repayment of borrowed funds, payment of taxes, fees and other payments to the budget, and the possibility of making a profit."; 6) in Article 7, add the following paragraph:       "The basic principles and conditions for the implementation of the Second Section project will be settled in the SOP. Considering that the gas resources of the Urikhtau and Zhanazhol fields can be the main source of raw materials for transportation through the Second Section, the SOP must necessarily contain the principles and basic conditions for cooperation between Authorized organizations for the development of the Urikhtau gas condensate field, a mechanism for determining a fair market price for gas produced by JSC SNPS-Aktobemunaigas and its affiliated companies that ensure the commercial feasibility of gas production, as well as the possibility of supplying gas produced by JSC SNPS-Aktobemunaigas and its affiliated companies, to the Aktobe region of the Republic of Kazakhstan."; 7) in Article 8: in the first paragraph, the words "Gas Pipeline", "Gas Pipeline" should be replaced respectively with the words "First section", "First section"; in the second paragraph, the words "first section of the Gas Pipeline" should be replaced with the words "First section"; in the fifth paragraph, the words "Gas Pipeline", "Gas pipeline" should be replaced by the words "First section", "First section", respectively; in the sixth paragraph, the word "Gas pipeline" should be replaced by the words "First section";       in the seventh paragraph, the words "Gas pipeline", "Gas pipeline", "Gas Pipeline" should be replaced, respectively, with the words "First section", "First section", "First section"; the eighth paragraph after the words "capacity distribution" should be supplemented with the words "First section"; in the eighth paragraph, the word "Gas Pipeline" should be replaced with the words "First section"; in the eighth paragraph, replace the word "for" with the words "in the next priority"; in the ninth paragraph, replace the word "Gas pipeline" with the words "First section";       after the twelfth paragraph, add the following paragraphs:       "Authorized organizations or their affiliated companies will have access rights to the facilities of the Second Site being created in proportion to the shares of participation in the organization established in the territory of the Republic of Kazakhstan for the purpose of implementing the Second Site project. At the same time, regardless of this allocation of access to the facilities of the Second Site being created, the Authorized Organization or the affiliated company (affiliated companies) of the Authorized Organization supplying (supplying) will have the priority right of access. gas for the domestic market of the Republic of Kazakhstan. The capacity of the Second section is used in the following priority:       1. for the transportation of gas needed for the technological needs of the Second section; 2. for the supply of gas for domestic consumption of the Republic of Kazakhstan; 3. for the transportation of export gas to China;       4. for the transportation of transit gas to China.       If there are capacities of the Second Section that are actually unused by an Authorized Organization of the Kazakh side or an affiliated company of this Authorized Organization, as part of the implementation of the agreement (agreements) on gas transportation through the Second Section on the "ship or pay" principle specified in this Agreement, the priority right to use such capacities It is owned by an Authorized organization of the Chinese side or an affiliated company of this Authorized Organization. At the same time, the volumes of gas actually transported through the Second Section by an Authorized Organization of the Chinese side or an affiliated company of this Authorized Organization in the use of this priority right, and the volumes of gas actually transported through the Second Section by a third party(s), will be accounted for as volumes of gas transported in fulfillment of assumed obligations by an Authorized Organization of the Kazakh Side or an affiliated company. by the company (affiliated companies) of this Authorized Organization for the provision of 5 (five) billion rubles. m3 of gas per year, specified in this Agreement."; 8) Article 10 should be worded as follows:       "The norms of the legislation of the Republic of Kazakhstan and other rules regarding the acquisition (procurement) of goods, works and services do not apply to an organization established in the territory of the Republic of Kazakhstan for the purpose of implementing the project of the First Section, and to an organization established in the territory of the Republic of Kazakhstan for the purpose of implementing the project of the Second Section until the construction of the Pipeline is fully completed. At the same time, all other things being equal, it is necessary to ensure the maximum use of Kazakhstani goods, works and services.";       9) in Article 11: in the second paragraph, replace the word "Gas pipeline" with the words "First section"; in the third paragraph, after the words "from paying taxes in accordance with the procedure", add the words "and volume"; in the third paragraph, after the words "legislation of the Republic of Kazakhstan", add the words ", for the construction of the First section";       after the third paragraph, add the following paragraphs:       "An organization established in the territory of the Republic of Kazakhstan for the purposes of implementing the Second Site project is exempt from paying customs duties, customs duties and value-added tax on goods, with the exception of excisable goods, materials and equipment directly related to the production process of the construction of the Second Site and imported into the territory of the Republic of Kazakhstan for use in the construction of the Second Site in accordance with the list approved by the Government of the Republic of Kazakhstan.       The Parties agree to exempt the organization established on the territory of the Republic of Kazakhstan for the purposes of implementing the Second Site project from paying corporate income tax and property tax until the date of completion of repayment of borrowed funds raised for the construction of the Second Site."; 10) in Article 13: in the fourth paragraph, replace the word "first" with the word "First"; in In the fourth paragraph, replace the words "on the operation of the Gas Pipeline" with the words "on its operation";       11) in article 18: in the first paragraph, replace the words "national legislation" with the words "legislative acts".

  Article 2

     This Protocol is an integral part of the Agreement and is temporarily applied to the extent that it does not contradict the legislative acts of the States of the Parties, from the moment of ratification or other equivalent ratification of the domestic procedure necessary for the entry into force of the Agreement.

     This Protocol shall enter into force upon receipt by the Parties of the last written notification through diplomatic channels of the ratification of this protocol or the completion of another equivalent domestic ratification procedure necessary for the entry into force of this protocol.

  Article 3

     Done in Beijing on October 14, 2009, in two original copies, each in the Kazakh, Chinese and Russian languages, all texts being equally authentic.       In case of disagreement in the interpretation of the provisions of this protocol, the Parties shall refer to the text in Russian.

     For the Government For the Government of the Republic of Kazakhstan of the People's Republic of China

     Note. RCPI. The following is the text of the Protocol in Chinese.

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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