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Gas prices to rise after Beineu-Bozoi pipeline launch

29 april 2013, 14:32
0
Photo courtesy of munaigaz.kz
Photo courtesy of munaigaz.kz
Gasprices will rise after the launch of Baineu-Bozoi pipeline, Interfax-Kazakhstan reports citing Kazakhstan Oil and Gas Minister Sauat Mynbayev as saying at the expanded meeting with Kyzylorda oblast subsoil users.

Mynbayev noted that gas is sold to the population of Kyzylorda oblast at prices below the self-cost.

“1 thousand cubic meters costs $4 and this price is much lower than the self-cost. Gas prices will make up to $60 for 1 thousand cubic meters after Beineu-Bozoi pipeline is launched. I would like to warn that there will be no low prices; gas doesn't come for free. However, the raise should be gradual and should be extended over the period of around 2 years,” the Minister emphasized.

He also noted that the oblasts should have a common gas rate for consumers.

Akim (Governor) of Kyzylorda oblast Krymbek Kusherbayev said that oil and gas industry was the main booster of the oblast's development.

“It is important for the region to avoid a decline in oil production at this stage. According to estimates, we have enough reserves for another 10-15 years. That’s why it is very important that we use these years to overcome our dependence on oil and gas industry. And it is also important to step out exploration of new fields and deposits of mineral reserves,” Kusherbayev said.

311km Beineu-Bozoi gas pipeline is viewed as the second part of Kazakhstan-China pipeline. The line will pass through Mangistau, Aktobe, Kyzylorda and South-Kazakhstan oblasts. The project is operated by Kazakhstan-Chinese joint venture called Beineu-Shymkent Gas Pipeline.


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