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Trans-Caspian Gas Pipeline to provide Kazakhstan with Independence in Talks on Gas Prices with Buyers: Senior Official of Kazakh Holding

Oil&Gas Materials 8 June 2007 19:31 (UTC +04:00)
Trans-Caspian Gas Pipeline to provide  Kazakhstan with   Independence in Talks on Gas Prices with Buyers: Senior Official of Kazakh Holding

Kazakhstan, Astana / corr Trend K.Arnova / Trend interviews the Deputy Chairman of the Managing Board of the State Holding of Kazakhstan Samruk, which unites assets of all large national companies of Kazakhstan, Wolf Warkurk.

Question: What is your position on the Trans-Caspian gas pipeline project, which has actively lobbied the European Union, particularly, the European Commissar on Energy, Andris Pibalgs over the past few years?

Answer: At present, Kazakhstan has two export routes for the delivery of hydrocarbons. These run to Russia and China. In this case, the Trans-Caspian gas pipeline would be another direction via the South Caucasus and onwards to Turkey and South Europe. It actually provides a priority, because it automatically adds new consumption markets. It means more independence in talks with buyers on gas prices.

Question: There are ideas that a resolution recently taken by the heads of three countries on the construction of the Caspian gas pipeline put a halt on plans for the implementation of the Trans-Caspian gas pipeline?

Answer: It depends on the capacity that the Caspian gas pipeline will have during its operation. Once Turkmenistan and Russia agree upon the volumes, that Kazakhstan will not have to develop additionally one project independently in term of gas production, the Trans-Caspian route will be needless because of economic inexpediency.

But I should note that all will depend on the volumes that can be pumped through the Caspian pipeline and the volume of gas production in Kazakhstan.

As is known, it is planned to establish petro-chemical and gas chemical complexes in Kazakhstan, where big gas volumes should be delivered within a long period. Therefore, it can evolve shortage in natural gas to load fully two new gas pipelines.

Question: Commenting on the resolution on construction of a Caspian gas pipeline, the head of Shell in Kazakhstan, Martin Ferstle, said that "We witnessed the development of a new gas scenario both for Central Asian countries and for Europe". Is this scenario new for the Central Asian countries, because even previously gas was transported there via Russia?

Answer: It is really a new scenario. It can be new, while it depends on whether you are talking about it in terms of geography or technicalities. It can be regarded as new if relevant terms are accepted in financial and legal platforms.

The scenario can represent an innovation in the case that the gas producers coordinate with the infrastructure-mediator, Russia, on crude deliveries, which will differ from the previous ones.

So, not only the Russian partner should be responsible for the delivery and price of gas. There should be fair distribution of responsibility and rights between the producers and transporters. Thus, Turkmenistan and Kazakhstan should not lose control over gas in the border. In this case it is possible to speak about innovation.

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