Kazakhstan has pushed back until next year the signing of a binding natural gas import contract with Gazprom, with the country opting to pass this winter season without previously anticipated gas imports from Russia.
The Astana government instead opted to only sign a more general strategic cooperation agreement with the Russian state controlled gas giant at the end of the last week in St Petersburg.
Kazakhstan is already transiting Russian gas across the country to Uzbekistan following upgrades at legacy pipeline, known as Central Asia — Centre gas pipeline system, that reversed its flow to open up the possibility of gas shipments from Russia to both countries.
Uzbekistan has become the first nation among former Soviet republics in Central Asia to embrace the Kremlin’s offer of the supply of inexpensive energy to bolster its quickly growing economy.
The offer came as Moscow has been trying to build new export markets for Gazprom following the loss of the European customers last year, resulting in the estimated gas production shut-in of 100 billion cubic metres per annum for the gas giant.
Speaking on the sidelines of an industry event in St Petersburg last week, Kazakhstan’s first deputy prime minister Roman Sklyar said that the country is still talking with Gazprom about contracting imports of about 3 Bcm per annum of gas for a period of about 15 years, according to Russian state news agency Tass.
However, the signing of that binding contract for these gas supplies is now expected not earlier than in 2024, according to Sklyar.
Kazakh Energy Minister Almasadam Satkaliyev said at a briefing in Astana on Friday that “in the event of sudden jump in domestic gas consumption [this winter], the country will import gas from our Russian colleagues”.
The discussed import volume is just marginally higher than Uzbekistan’s supplies. Earlier this year, the country signed a short-term contract to buy 2.8 Bcm per annum of gas from Gazprom, maintaining the winter delivery rate of at least 9 million cubic metres per day.
Earlier, suggestions of possible Russian gas imports at annual rates of up to dozens of Bcm were heard in Astana that is looking to import inexpensive Russian gas to its regions in the north and northeast, while also increasing exports of domestically produced gas to China.
Kazakh energy industry social network channel Energy Monitor has estimated that Kazakhstan may pay at least $240 per 1000 cubic metres of gas from China while the country has a good chance of agreeing the purchase of Russian gas at a price of less than $120 per 1000 cbm.
Gazprom has not commented on the progress of gas supply talks with Kazakhstan. The company in a statement said that the strategic cooperation agreement with the country is “aimed at developing cooperation in the field of supply, transportation and processing of natural gas, as well as its geological exploration and production”.
Sklyar said that the agreement also paves the way to mutual efforts to continue with upgrades at the Central Asia —Centre pipeline in Kazakhstan to enable higher transit rates for Russian gas to other markets in Central Asia.
