Russian deputy prime minister announces new gas pipeline project
The project for constructing a main gas pipeline from Russia to China via Kazakhstan has already been launched, according to Deputy Prime Minister of Russia Alexander Novak.
«There is a new project under consideration; it was proposed by Russia in conjunction with our Kazakh friends. This is the construction of a gas pipeline capable of exporting 45 billion cubic meters of gas, including 10 billion cubic meters for the gasification of the northern and eastern parts of Kazakhstan and 35 billion cubic meters of gas for export to the People’s Republic of China. As of today, we are doing some calculations, preparing a feasibility study and negotiating. However, it is safe to say that we are getting the ball rolling,» he told the Russia 24 TV channel in an interview.
Earlier this month, the national gas company QazaqGaz told Kursiv.media that it had interviewed various industrial enterprises and energy companies in the northern and eastern regions of the country and found that they are ready to purchase about 10 billion cubic meters of gas per year. This is why Kazakhstan has applied for that amount of gas for consumption while negotiating Russian exports to China via its territory.
Nevertheless, it is still unclear how much the Russian gas is going to cost Kazakhstan. According to Energy Minister Almasadam Satkaliyev, the price of gas must be reasonable for Kazakhstani consumers. However, given that retail gas prices in Kazakhstan are significantly lower than in Russia, not to mention additional costs related to the pipeline construction and expenditures linked to servicing banking loans, the issue of the final tariff is going to be of high importance for Kazakhstani consumers.
In late November, during a state visit to Astana, President of Russia Vladimir Putin described the possible construction of a gas pipeline from Russia to China via Kazakhstan as a very promising project. Moreover, he promised to boost the export of Russian gas to Uzbekistan via Kazakhstan. After Russia’s full-scale invasion of Ukraine in February 2022, Russian gas company Gazprom was forced to increase its exports to Asia, particularly to China. However, the export to China hasn’t yet substituted revenues Russia has lost after being compelled to leave the European market.
