Chinese companies are dominating pipeline construction tenders at the Tengiz oilfield in Kazakhstan, operated by Chevron, an American multinational energy corporation, Upstream reported on Tuesday, citing sources privy to the project.

The engineering, procurement, and construction (EPC) contract tender, which requires bidder companies to source funding for the project, covers the construction of two specialized pipelines to transport propane and ethane over 200 kilometers to a Tengiz-based processing facility near Atyrau.

The planned pipelines, being developed by KMG Petrochem, a subsidiary of Kazakhstan’s state-run energy company KazMunayGaz, are part of a major project aiming to process associated gas from oilfields into valuable products for domestic use amid rising demand for hydrocarbon fuels. 

By connecting Karachagan and Kashaganak fields to the gas-to-polymer plants, the twin pipeline project is set to bolster Kazakhstan’s efforts to advance its domestic petrochemical industry. 

In May, Kazakh Prime Minister Olzhas Bektenov met with Peter Costello from Shell’s Exploration and Production Division and emphasized the significance of accelerating the construction of a four-billion cubic-meter gas processing plant at the Karachaganak field, according to Astana Times. 

The parties also agreed to fast-track the construction of a 2.5-billion-cubic-meter gas processing plant at the Kashagan field— one of the world’s largest oilfields, and the development of the field’s new sections.

With the ongoing efforts to construct more oil and gas pipelines and processing facilities in Kazakhstan, the country is set to become one of the global energy hubs, providing a viable alternative to Russian products.