Kazakhstan embarks on major upgrade of its gas infrastructure

Kazakhstan’s Ministry of Energy has announced a plan to construct underground gas storage facilities. The project, which is part of the comprehensive gas sector development plan, developed by the agency for the next five years, is expected to be carried out between 2025 and 2029.

Later this year, QazaqGaz, the national gas company in Kazakhstan, is going to develop a portfolio of prospective geological structures suitable for the construction of new underground storage facilities in Kazakhstan. Additionally, the active Bozoi gas storage facility is set to be expanded to 4 billion cubic meters by 2028. The Ministry of Energy, QazaqGaz and Intergas Central Asia, a QazaqGaz subsidiary, have been designated as the project executors. They are also anticipated to gradually expand the Akyrtobe underground gas storage facility, after it reaches a seasonal gas withdrawal capacity of 130 million cubic meters. This project is anticipated to be completed by 2029.

QazaqGaz is also expected to upgrade gas control points at the Poltoratskoye underground gas storage facility and drill new wells at the site by 2027 to increase daily gas withdrawal capacity. The projects’ costs have yet to be defined.

The first stage of the second line of the Beineu-Bozoy-Shymkent gas pipeline is expected to be completed in 2026. The KS-Kostanay gas pipeline, which will connect Compressor Station-14 in the Aktobe region with the capital of the Kostanay region, is anticipated to be commissioned in 2028. The $264.8 million Taldykorgan-Usharal gas pipeline, which will be financed through borrowed funds, is set to be put into operation in 2026. Additionally, the fourth and final stage of the Saryarka gas pipeline is scheduled for completion in 2027.

The overhaul of the Central Asia – Center 4 (CAC) gas pipeline system, CAC-4 and LCAC-4 (the second, third and fourth start-up facilities) is set to be completed in 2026. This will enable an increase in Russian gas transit through Kazakhstan and Uzbekistan, as well as ensure a stable supply to the domestic market. The project stands at approximately $742.1 million and is being executed by QazaqGaz and Intergas Central Asia using both their own funds and borrowed capital.

The construction of a looping section of the Karachaganak-Uralsk gas pipeline, designed to transport gas from the planned plant at Karachaganak, is expected to require approximately $171.7 million. The financial scheme of the project has yet to be determined, with QazaqGaz and Intergas Central Asia as its key participants.

Furthermore, QazaqGaz and QazaqGaz Aimaq are set to spend an additional $225.2 million of their own and borrowed funds to digitalize regional gas transportation and sales by installing remote data communication tools and implementing relevant information systems.