Kazakhstan's primary gas company, JSC National Company "QazaqGaz," has signed a new gas export contract with the Chinese oil and gas company, PetroChina.
The agreement covers the years 2023-2026, Orient.tm reports.
According to the extended document, up to 10 billion cubic meters of gas per year can be supplied from Kazakhstan to China.
QazaqGaz currently has an export contract for delivering Kazakh gas to China. Kazakhstan's proven natural gas reserves are estimated at 3.8 trillion cubic meters, with the majority concentrated in four major fields: Karachaganak, Tengiz, Kashagan, and Zhanazhol.
According to QazaqGaz's forecast, gas consumption in Kazakhstan will increase to 40 billion cubic meters by 2030. Last year, the country's gas consumption amounted to 21 billion cubic meters, with exports reaching 5 billion cubic meters.
Kazakhstan has the capacity to increase domestic production. However, all major oil and gas projects in the country are developed under production-sharing agreements (PSAs), and Kazakh authorities cannot influence foreign companies. Supplying domestic consumers with gas is not profitable for the West due to the fixed price on the domestic market. Selling gas-injected oil internationally is a more lucrative option.
QazaqGaz, a subsidiary company of the sovereign wealth fund "Samruk-Kazyna," operates a gas pipeline network with a total length of around 76,000 kilometers, including 20,000 kilometers of trunk gas pipelines with an annual capacity of up to 267.8 billion cubic meters.
CentralasianLIGHT.org
October 31, 2023