Kazakhstan and Qatar Reach Agreement on Major Gas Projects to Boost Production

Kazakhstan and Qatar's Power International Holding have reached an agreement on four significant gas projects aimed at increasing Kazakhstan's gas production to 60.456 billion cubic meters by 2024. The consensus was reached during a meeting of the Energy Council chaired by Prime Minister Olzhas Bektenov on May 3, 2024.

Why this matters: This agreement has significant implications for Kazakhstan's energy security and economic growth, as it will enable the country to increase its gas production and processing capacity. The project's success could also have a ripple effect on the global energy market, potentially influencing gas prices and supply chains.

The four projects include the construction of two gas processing plants with annual capacities of 1 billion cubic meters and 2.5 billion cubic meters, a new gas compressor station KS-14 and the KS-14-Kostanai-Aktobe main gas pipeline, and the second line of the Beineu-Bozoi-Shymkent main gas pipeline. These projects are expected to optimize the utilization of raw gas by enhancing processing capacity and ensure Kazakhstan's energy security by supplying gas to southern, central, and northern regions while maintaining export volumes.

Prime Minister Bektenov emphasized the importance of these projects, stating, "Agreements between the President of Kazakhstan and the Emir of Qatar allow us to jointly implement a number of mega-projects of key importance for the economy of our country. We are consistently moving towards the creation of a powerful modern industry in Kazakhstan. There should be no delays in the implementation of projects. All issues are under my personal control."

The Prime Minister also instructed the Ministry of Energy and QazaqGaz to maximize the use of internal competencies and products from domestic manufacturers in the implementation of these projects. The Ministry of Energy has been given additional instructions to further increase the profitability of the gas make, progress.

According to projections from the Ministry of Energy and QazaqGaz, Kazakhstan's gas production in 2024 is expected to come primarily from the Tengiz (27%), Karachaganak (38%), and Kashagan (20%) projects. Marketable gas production in 2024 is planned at 28.054 billion cubic meters, while current domestic consumption is forecasted to reach 20.9 billion cubic meters.

The agreement between Kazakhstan and Qatar's Power International Holding marks a major milestone in the development of Kazakhstan's gas. The implementation of these projects is expected to not only increase gas production and processing capacity but also contribute to the country's energy security and economic growth.

Key Takeaways

• Kazakhstan and Qatar's Power International Holding agree on 4 gas projects.
• Projects aim to increase Kazakhstan's gas production to 60.456 billion cubic meters by 2024.
• Four projects include 2 gas processing plants, a compressor station, and a main gas pipeline.
• Projects will enhance energy security, supply gas to regions, and maintain export volumes.
• Implementation will contribute to Kazakhstan's economic growth and energy security.