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Kazakhstan may cease gas supplies to Russia

07 march 2013, 18:39
Photo courtesy of munaigaz.kz
Photo courtesy of munaigaz.kz
Kazakhstan may cease gas supplies to Russia, Tengrinews.kz reports citing Kazakhstan Oil and Gas Minister Sauat Mynbayev as saying at the Senate meeting.

“Along with regulation of our relations with Russia, the group is also working on gas right now. If we don’t agree on the prices now, all this gas will be redirected to the south, possibly to China, in 2015 after Beineu-Bozoi-Shymkent pipeline to China is completed. It is planned to be completed in autumn 2014. I mean Bozoi-Shymkent. The linear part will be completed this autumn and next winter we will be able to supply gas from Aktobe to Almaty and Almaty oblast,” Sauat Mynbayev said.

The Minister noted that the whole south of Russia is supplied by Karachaganak gas through swap operations. Around 7 billion cubic meters out of these supplies are supplied to Orenburg gas refinery, while 4.5 billion cubic meters are returned to Kazakhstan through swap operations and are distributed to Kostanay, West-Kazakhstan oblast and the south of the country.

“As for the remaining 2.5 billion cubic meters of gas, we have the issue of prices there. West-Kazakhstan gas that will go along Beineu line as far as Bozoi-Shymkent pipeline will be available only in 2015. We have a gas law that sets a ceiling wholesale price for every sector. Unfortunately, the requirements of the law have not been fully coordinated yet and the issue of pricing is sensitive and not simple for us. The Ministry of Economy and Anti-Monopoly Commission are currently reviewing these issues,” Sauat Mynbayev added.

By Baubek Konyrov

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