Strategic gas partnership strengthens Russia – Kazakhstan economic relations
A working meeting between Alexey Miller and Nursultan Nazarbaev, President of the Republic of Kazakhstan took place during the visit.
At meeting. Alexey Miller (second from left), Nursultan Nazarbaev (center)
The parties discussed prospects for bilateral cooperation in the energy sector. Special attention was given to the implementation of joint projects in hydrocarbon exploration, production, processing and distribution.
Specifically, the meeting addressed further cooperation of Gazprom and KazMunaiGaz on natural gas marketing and processing on the basis of the Orenburg Gas Processing Plant (GPP).
In the course of negotiations, the parties noted that broadening of Russia – Kazakhstan strategic partnership in the gas sector played an important role in strengthening of the economic relations between the two countries.
The explored natural gas reserves of the Republic of Kazakhstan are currently estimated at 3.3 trillion cubic meters. The natural gas resources, including those offshore the Caspian Sea, are forecast at about 8 trillion cubic meters.
In recent years the domestic gas production and consumption in Kazakhstan annually averaged 39.5 and 10.2 billion cubic meters, respectively.
In 2011 Gazprom Group sold 3.7 billion cubic meters of natural gas in Kazakhstan (10 per cent more than in 2010).
The main lines of bilateral cooperation between Gazprom and Kazakhstan business enterprises are the following:
- processing of raw materials from Karachaganak gas and condensate field at the Orenburg GPP;
- transit of Kazakh gas via Russia to consumers in the CIS by the companies of Gazprom Group;
- Russian natural gas supplies to consumers of the Kostanay Region of Kazakhstan;
- transit of Central Asian gas via Kazakhstan.
KazRosGaz is a joint venture established on a par by Gazprom and KazMunaiGaz . Its main activities include natural gas and gas products purchasing, marketing, processing, transportation, as well as domestic and international sales.