Volume of gas consumption in local market of Kazakhstan significantly increases

Kazakhstan Materials 24 May 2022 16:59 (UTC +04:00)
Volume of gas consumption in local market of Kazakhstan significantly increases
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, May 24. The issue of gasification of Kazakhstan’s settlements was discussed at a meeting of the Government chaired by Kazakh Prime Minister Alikhan Smailov, Trend reports with reference country’s government.

Minister of Energy Bulat Aqchulakov, Board Chairman of Sovereign Wealth Fund "Samruk-Kazyna" JSC Almasadam Satkaliyev, and heads of provincial governments (akims) of Nur-Sultan and West Kazakhstan regions made presentations.

According to the minister, the level of gas supply in Kazakhstan amounted to 57.6 percent of the population at the end of 2021. Gasification of the country is carried out according to the general scheme for 2015-2030.

Smailov noted that gas consumption in the local market has increased by 35 percent over the past 5 years. More than 3,600 industrial facilities were converted to natural gas last year.

"Consumption is expected to increase to 20 billion cubic meters this year. The number of gasified settlements will be over 1,700. More than 11 million Kazakh people will have access to natural gas," Smailov said.

Prime Minister also emphasized that the gas industry is demonstrating sustainable growth and occupies an important place in the socio-economic development of the country.

"The growing needs of population and industry require the availability of sufficient volumes of gas. Therefore, expanding the resource base, including large-scale geological exploration, should be a key task," Smailov noted.

According to PM, this is also important for potential investors, whose entry into the market is largely due to the availability of raw materials, especially gas.

In this regard, the relevant departments were instructed to develop a final package of regulatory and fiscal preferences for gas projects by June 15 as part of the development of the Improved Model Contract approved by the Government.

Smailov also added that the further development of industry directly depends on the level and condition of the gas transmission system. Today, gas pipelines operate at maximum capacity and many of them require major repairs. Taking this into account, Smailov was instructed to submit to the Government by July 1 an updated draft of the general scheme for gasification of regions until 2030.

"There should be a clear plan for the construction of new facilities, modernization and repair of existing ones," the head of government emphasized.

“Research process is underway for an optimal solution to the issue of gasification of country’s northern and eastern regions in accordance with the instruction of the president,” he added.

"Two options are being worked out - from Russian sources and through the SaryArka gas pipeline. This issue is important, and it cannot be dragged out," Smailov said.

Energy Ministry together with the relevant akims and the Samruk-Kazyna fund were instructed to conduct a comprehensive assessment of the options under consideration and make an agreed decision until September 1, 2022.