Press releases
19th meeting of the KAZENERGY Association Board chaired by Timur Kulibayev held yesterday.
10 December 2015
The Members of the Board listened to the reports of the Executive Committee on the activities completed in 2015. They approved the annual work plan, the list of the Association’s target projects and the 2016 budget.
This year, the Association has actively discussed the changing conditions in subsoil matters, reduction of the tax burden on the industry, improvement of the legislation in the field of environment and electric power. Furthermore, the Association implemented human capital development projects in oil-gas and energy industries: educational, dual training system projects and others.
Additionally, the meeting participants raised the issues of creating a single operator for the main pipelines and implementing the gasification program in the Republic of Kazakhstan. Subsoil companies note that the first and foremost priority in the oil transportation is the supply reliability and security.
Currently, JSC “KazTransOil” fully meets these requirements. Besides, it was noted that the main equipment of the main pipeline facilities for oil and gas is fundamentally different in their composition and principle of action. It is important for servicing costs to be in line with the required standards. Therefore, it is impossible to achieve synergies by reducing the costs with the establishment of a single operator.
A number of questions were raised on the commercial gas procurement procedure to meet the domestic needs of the Republic. Currently, the national operator enjoys the preferential right granted by the state and purchases the entire volume of gas from subsoil users in order to sell it to the consumers in the domestic market and abroad. In the meanwhile, the commodity and raw gas production exceeds the domestic market needs.
However, the gas purchase price that the national operator proposes to the subsoil users is low and the subsoil users are in turn deprived of the opportunity to export the excess gas volume. It is therefore recommended to contact the Ministry of Energy of the Republic of Kazakhstan with the proposal of distributing the purchased gas volume for the domestic market needs among each subsoil user company and taking into account the changes in the market conditions when setting the gas prices.