Kazakhstan May Reduce Gas Supplies To China

10/5/2023 7:14:55 PM

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, October 6. Kazakhstan may reduce gas supplies to China, said Minister of energy of Kazakhstan Almassadam Satkaliyev during the XV KAZENERGY Eurasian Forum, Trend reports.

"Kazakhstan has an agreement with the Chinese side for the supply of a certain volume of Kazakh gas as part of our commercial agreements with the Chinese side. We cannot exclude part of gas supplies to China due to the fact that supplies to the domestic market are unprofitable. Through export supplies, QazaqGaz has the opportunity to finance the difference between supplies for export and to the domestic market," he said.

As he noted, therefore, Kazakhstan plans to supply a certain volume of gas to China, which is currently carried out at the expense of Kazakh resources.

"Due to growing consumption in the country, the volume will decrease as consumption facilities are introduced in Kazakhstan. We are talking about gas turbine stations, gas steam plants, etc.," he added.

Kazakhstan exports gas mainly to China. In 2022, exports fell to 4.6 billion cubic meters - from 7.2 billion cubic meters a year earlier. At the end of last year, domestic consumption in the country amounted to 21 billion cubic meters, and by 2023, QazaqGaz expects it to grow to 40 billion cubic meters.

Yesterday President of Kazakhstan Kassym-Jomart Tokayev has received Chairman of the Board of Directors of China National Petroleum Corporation (CNPC) Dai Houliang.

Issues of gas export to China and the construction project of a new line of the Beineu-Bozoi-Shymkent gas pipeline, as well as prospects for expanding the export of Kazakh oil to China, were discussed.

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