KazTransGas assigned the role of the sole national operator of gas supplies

Following respective government’s decree as of July 5, KazTransGas has been designated the sole national operator of gas supplies in Kazakhstan, the Company’s Press Service reports. Among other things, the Company will be in charge of developing the master plan of gas supplies network, exercising the pre-pre-emptive right to purchase all crude and tank gas and managing gas supplies facilities. KazTransGas was established in 2000 to streamline the country’s gas production industry. In 2011 the Company transported a total of 110 552 million cubic metres of gas, 9% up against 2010. When presenting the draft law on gas supplies back in May 2011, Oil and Gas Minister Sauat Mynbayev said that “the draft law seeks to make sure marketable gas is primarily supplied to the domestic markets; secondly, it seeks to establish a sole national operator of marketable gas supplies: the operator shall have the preemptive right to purchase processed associated gas”, said when speaking at the sitting. “Associated gas accounts for 80% of all the gas available (…) This way we intend to enforce President’s instruction to effectively use associated gas to meet domestic demand”, Interfax – Kazakhstan quoted the Minister as saying at that time. Tengrinews.kz reported earlier, citing Vice Minister of Oil and Gas Bolat Akchulakov as saying May 23, 2012 at the V Astana Economic Forum, that by 2030 Kazakhstan may become a major supplier of gas to global markets through secondary recovery at the contracted oil and gas fields. He reminded that Kazakhstan plans to raise gas production from the current 40 billion cubic meters to 109-110 billion cubic meters by 2030.