Kazakhstan, Astana, August 21 / Trend D. Mukhtarov /
The price for Kashagan gas will depend on many factors, General Director of JSC KazTransGas, Serik Sultangali believes.
"Lifestyles will force the price of this gas to increase. This factor not only depends on us," Sultangali said at a briefing in Astana on Monday.
He reminded those present that the price of gas is defined by the government, taking into consideration the social importance of natural gas for the population of the country.
"That is why work on defining the price for Kashagan gas is still under way. However, no one gets cheaper gas than Kazakhstan," he added.
The head of the national company gave a comparative analysis of prices on export and for the domestic market.
"There is comparative analysis. Kyrgyzstan purchased gas for $300 per cubic meter last winter. We charge $86. We keep the price down though it is very hard, as most of the money goes into a grant, so that any price surge for gas did not take place," Sultangali said.
A signing ceremony for the gas sale contract produced at Kashagan between the national operator of the Republic of Kazakhstan and the contracting companies of the North-Caspian project took place in Astana on Monday.
According to the terms of the contract, JSC KazTransGas will acquire the total volume of Kashagan gas extracted at the first stage before the expiry of the NCSPSA that is until 2042.
The planned annual supply volume of Kashagan gas will constitute from 2.5 to three billion cubic meters which will allow the consolidation of significant amounts of gas for internal market to export.
The preliminary allocation of shares will be as follows: between 70 and 80 per cent of the produced gas is for Kazakhstan's population whilst 20 or 30 per cent, depending on internal market demands, will be exported.