Kazakhstan Makes More Of Its Gas

Kazakhstan Reveals Plans For Cargo Transportation Via Azerbaijan

Kazakhstan’s state KazTransGaz (KTG), a subsidiary  of KazMunaiGaz (KMG), plans to start exporting gas to China by the Central Asia – China gas pipeline later this year, according to a company official. The giant Kashagan field in the Caspian has restarted output, and there are also plans to change the way gas from the Karachaganak field is treated.

“As part of the agreement reached between KMG and China’s PetroChina, we will start to export gas of Kazakh origin to China in the fourth quarter. So, this winter Chinese consumers will receive not only Turkmen and Uzbek gas, but also fuel from Kazakhstan,” KGT chairman and general director Rustam Suleimanov said after a meeting to discuss the Turkmenistan-Uzbekistan-Kazakhstan-China gas export pipeline September 22.

The injection of 22.8mn m³/d of gas from Kashagan into Kazakh Intergas Central Asia pipeline began in mid-October. The report did not say where the gas ended up but this pipeline is connected to Central Asia-China pipeline.

Separately, the country’s energy ministry, state producer KazMunaiGas, energy transporter KazTransGas and Anglo-Dutch major Shell signed a memorandum of co-operation in the field of gas processing and petrochemicals market research. The energy minister Kanat Bozumbaev told reporters after the signing on September 6 that they would also consider the prospects for processing output from the Karachaganak field.

“Our task is to thoroughly consider –  and with Shell’s help to decide in the near future – whether the country should build some large petrochemical complex on the basis of Karachaganak, including gas processing, or stay with the same model,” he said.

Shell is one of the largest foreign investors in the economy of Kazakhstan, with 16.81% of the North Caspian Operating Company (Kashagan), a PSA to develop the license area Pearl in the Kazakhstan sector of the Caspian Sea (55%), the Karachaganak production-sharing agreement (29.25%), and the Caspian Pipeline Consortium (7.4%).

Ilham Shaban, Kama Mustafayeva

This is an extract from the current issue of Natural Gas World, published October 19

 You can read the full article in Issue 5 of Natural Gas World Magazine