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Seven unpopular facts about Kazakhstan's gas industry

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Seven unpopular facts about Kazakhstan's gas industry derived from friends page, information requests and dialogues with analysts are:

Fact 1. Gas is exported from Kazakhstan by KazRosGaz company alone, which itself has no production capacities. It is just an office in Almaty with an annual profit of up to one billion dollars.

Fact 2. CNPC, KPO and TCO earn nothing on gas sales, or almost nothing.

Fact 3. The whole gas transit in volumes up to 100 billion cubic meters a year is pumped through a small 100km section of the Soyuz-Novopskov pipeline. The section is in the West Kazakhstan oblast, across which Russia pumps gas from West Siberia back to Russia. Thanks to this we give exaggerated figures.

Fact 4. We know that the Beineu-Bozoy-Shymkent pipeline is needed to provide gas to Kazakhstan's south. But the whole world and China consider it the second line of the Kazakhstan-China pipeline.

Fact 5. Chinese companies have bought out all the gas in two Kazakh provinces - Aktobe and Kyzylorda. There are no other companies, but Chinese ones.

Fact 6. All the largest and lucrative fields in Kazakhstan are developed by Americans. Look at Karachaganak and Tengiz.

Fact 7. Nearly a half of the gas produced is pumped back into formation.


September 27 2013, 10:32

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