BAKU, Azerbaijan, July 14. A gas shortage in Kazakhstan is forecast as early as next year, President Kassym-Jomart Tokayev said, Trend reports.
Tokayev made the statement in his address to the extended session of the Kazakh Government.
“The gas industry plays a key role in the economic and social well-being of Kazakhstan. Due to the introduction of new industrial facilities, gas consumption in the domestic market is increasing annually. Over the past 10 years, gas consumption in the domestic market has more than doubled - from 9 to 19 billion cubic meters," the president said.
"A gas shortage in the country is predicted as early as next year. At the same time, it should be understood that the reorientation of gas from export to the domestic market is a forced step that leads to a loss of foreign exchange earnings and a deterioration in the trade balance. Therefore, to solve this problem, systemic measures are needed, including increase in the resource base and gas processing," Tokayev said.
He added that only by increasing gas production and processing volumes, Kazakhstan will be able to receive export profits and fully meet domestic needs.
"Therefore, fiscal preferences should be worked out for new gas production projects. The government should also engage respective national companies in the process. We were forced to extend the price regulation for the retail sale of liquefied petroleum gas until the end of this year. However, artificial price controls could lead to shortages in the future. This is the law of the market. Therefore, the Government needs to take measures to launch trading, while avoiding price distortions,” Tokayev said.