The Role of KazTransGas in Kazakhstan's Energy Sector

KazTransGas plays a vital role in Kazakhstan's energy sector. The company is responsible for transporting natural gas across the country, ensuring a stable supply to consumers.

Kazakhstan's energy sector is heavily reliant on natural gas, with the country aiming to increase its share of gas in the energy mix. KazTransGas is at the forefront of this effort, investing in infrastructure to support the growth of the gas industry.

With a network of over 13,000 kilometers of pipelines, KazTransGas has built a robust infrastructure to support the transportation of natural gas.

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KazTransGas operates a vast network of natural gas pipelines throughout Kazakhstan, including major transmission pipelines and distribution networks.

The company is the sole operator of the country's gas transportation system, facilitating the transit of natural gas to neighboring countries such as Russia, China, and Central Asia.

KazTransGas operates the Kazakhstan section of the Bukhara–Tashkent–Bishkek–Almaty pipeline.

In 2015, KazTransGas completed the third branch (C branch) of the Kazakhstan-China gas pipeline, adding to a total capacity of 55 billion cubic meters per year.

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The pipeline project employed over 4,000 specialists and received $1.2 billion in state funding from 2008 to 2015.

It forms part of the larger 7,500-kilometer Turkmenistan-Uzbekistan-Kazakhstan-China pipeline, traversing South Kazakhstan, Zhambyl, and Almaty regions.

Here's a breakdown of the trunk pipeline gas transportation volumes for KazTransGas and other companies in 2018, 2019, and 2020:

In December 2020, allegations of potential Conflict of interest arose surrounding Kairat Sharipbaev's appointment as chairman of KazTransGas.

Kairat Sharipbaev faced allegations of indirect ties to companies that received major contracts from KazTransGas and the Government of Kazakhstan.

An investigation by Radio Free Europe/Radio Liberty (RFE/RL) reported on these indirect ties, raising concerns about the awarding of a major contract to GPC Investment.

The $860 million contract was awarded to construct a gas processing plant, with GPC Investment favored over established international energy companies.

This selection process has been questioned, with concerns about the fairness and transparency of the decision-making process.

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In 2020, KazTransGas' trunk pipeline gas transportation volumes were down by 16,904 million cubic meters to 86,590 million cubic meters. This decline was mainly due to lower Russian transit gas flows transported by Gazprom via Kazakhstan.

Intergas Central Asia transported 57,753 million cubic meters of gas via trunk pipeline in 2020. This is a significant decrease from the 72,961 million cubic meters transported in 2019.

The Asia Gas Pipeline transported 39,776 million cubic meters of gas via trunk pipeline in 2020. This is a decrease from the 45,870 million cubic meters transported in 2019.

The Beineu–Shymkent Gas Pipeline transported 12,694 million cubic meters of gas via trunk pipeline in 2020. This is an increase from the 10,087 million cubic meters transported in 2019.

Here's a breakdown of the total trunk pipeline gas transportation in 2020:

KazTransGas, the national operator, plays a crucial role in managing the country's gas market. They exercise the government's preemptive right to acquire gas from companies with KMG interest, including JSC Embamunaigas, JV Kazgermunai LLP, and Kazakhoil Aktobe LLP.

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These companies supply gas to the domestic market. In 2020, commercial gas sales volumes were down by 0.5% to 22.7 billion m, mainly due to reduced commercial gas exports to Russia and Uzbekistan.

Gas exports are a significant aspect of KazTransGas's operations. In 2020, exports totalled 7.9 billion m, with China receiving about 89% of the gas.

Here are the top gas export destinations in 2020:

KazTransGas also manages the domestic market, supplying gas to various consumers. In 2020, the domestic market received 14.811 billion m of gas.