Gazprom's delegation visits Kazakhstan
Message to the Media
Led by Alexey Miller, the Company’s Management Committee Chairman, Gazprom’s delegation today went on a visit to the Republic of Kazakhstan, holding a working meeting with Timur Kulibayev, KazMunaiGaz’s First Vice President.
The meeting explored potential cooperation in the gas industry, dealing in particular, with issues relative to the conclusion of a gas transit via Kazakhstan contract for 2005 and long-term Central Asian gas transmission agreements.
Alexey Miller and Timur Kulibayev addressed a range of measures aiming to expand and upgrade the Central Asia – Center gas main network.
Special emphasis fell upon setting up a Gazprom and KazMunaiGaz’s joint venture to upgrade the Orenburg Gas Processing Plant, achieving up to 15 bcm/y processing capacities for the gas going from the Karachaganak field.
At the close of the meeting, the parties signed a Protocol identifying key joint businesses in the aforementioned sectors and fixing the terms and conditions for Central Asian gas transit via Kazakhstan in 2005.
Background
The explored natural gas reserves of the Republic of Kazakhstan average 2 tcm, with the forecast natural gas resources (the Caspian Sea offshore inclusive) valued at 8.3 tcm.
Over the past years, domestic gas production and consumption in the Republic of Kazakhstan have annually averaged 11–12 and 5 bcm, respectively. Gas extraction is planned to grow to 14 and 40 bcm in 2005 and 2020, respectively, to be succeeded by potential increase in gas exports and crucial development of the Kashagan, Karachaganak and Tengiz fields.
Turkmen and Uzbek gas is going to European Russia, the Ukraine and the Transcaucuses via the Kazakh gas main network totaling over 9 thou km, having a more than 50 bcm in combined transit capacity, including the 42 bcm Central Asia –Center gas pipeline and needing repairs and modernization after a 20-year operation.
The Russian-Kazakh cooperation in the gas business is being regulated by the following Inter-Governmental Agreements: on Cooperation and Development of Fuel and Energy Complexes, dated 25 December 1993 (annual Protocols apply); on Technical and Economic Cooperation and Integration in the Oil and Gas Industries, dated 25 February 1997; on Cooperation in the Gas Industry, dated 28 November 2001.
In June 2002, Gazprom and the National KazMunaiGaz Company founded the 50/50 Kazakhstan-based KazRosGaz joint venture dealing with natural gas procurement, marketing, processing at Russian plants and with other activities.
Gazprom through its TsentrCaspneftegaz joint venture with LUKOIL is being involved in the development of the Tsentralnaya structure located in the Caspian offshore.
Information Directorate, OAO Gazprom