Country hopes to answer growing domestic demand with Russian imports
Оригинальный текст опубликован на сайте «Upstream», 24 October 2023 16:10 GMT . Автор: Материал доступен по .
Kazakhstan has almost tripled its total gas pipeline capacity to the legacy oil province of Mangistau as authorities scramble to meet rising energy demand.
Prime Minister Alikhan Smailov this week inaugurated the second line of the existing Beyneu-Zhanaozen gas pipeline, which runs about 310 kilometres from the country’s trunkline network into the heart of the Mangistau region in the country’s southwest.
The new line was built at an estimated cost of $375 million by national pipeline operator and producer Qazaqgaz.
It will increase total capacity of the pipeline to almost 9 billion cubic metres per annum, up from the previous 3 Bcm for the system’s first line.
The government said natural gas consumption in Mangistau has been growing fast in recent years and is already estimated to account for 20% of national demand.
Astana expects the availability of additional pipeline gas will foster the upgrade of power generation facilities in Mangistau built during the Soviet er.
Article continues below the advert
These outdated facilities have been breaking down in recent years, leading to prolonged blackouts that affect oil and gas production rates in Mangistau and the neighbouring Atyrau region, which hosts the country’s largest oil development, the Chevron-led Tengiz oilfield, and its key export pipeline, operated by Caspian Pipeline Consortium.
The last blackout in Mangistau in July took about a week to rectify and had a major impact on the country’s plans to boost oil production. The Energy Ministry revised down its output forecast for this year by 2%.
Kazakhstan is still expected to produce about 1.85 million barrels per day in 2023, against 1.75 million bpd last year, if the current rate of 1.9 million bpd is maintained until the end of this year.
The increased supply to Mangistau from gas developments in the country’s west and northwest are expected to follow amended plans by authorities to deliver produced gas to northern regions.
Astana hopes to reach a long-term agreement soon with Moscow and Gazprom for the delivery of Russian pipeline gas into the north and northeast at a preferential price, as the Kremlin seeks alternative export markets after the loss of European markets last year.
Gazprom began gas shipments to Uzbekistan this month, contracting to deliver 2.8 Bcm via Kazakhstan in 2023.