Exclusive
Over the Last 10 Years, the Length of Gas Distribution Networks in the Country Has Doubled
In an exclusive interview with Petroleum Journal publisher Oleg Chervinskiy, Bauyrzhan Askarov, General Director of QazaqGaz Aimaq JSC, discusses the progress and prospects of the country’s gasification efforts, the conversion of thermal power plants in Almaty and Astana to gas, and the issue of a fair price for natural gas.
– Bauyrzhan Bekzatkhanovich, according to the latest data, Kazakhstan's gasification level does not exceed 60%. When will we catch up with our Eurasian Economic Union partner, Belarus, which has already achieved gasification of about 90% of households, including over 50% in rural areas, despite not having its gas reserves?
When comparing Kazakhstan with Belarus and other post-Soviet countries with high gasification levels, the first factor influencing such a significant difference is the size of Kazakhstan's territory and population. For example, compared with Belarus, we are substantially larger—by more than ten times in terms of territory (Kazakhstan is the ninth largest country in the world by land area) and about twice as large in terms of population.
This means that achieving complete gasification in Kazakhstan requires significantly more resources, effort, and time. The length of the networks needed to be constructed is much greater due to the remoteness of settlements (over 60% of Kazakhstan's territory is far from major gas fields located in the west). Moreover, the economic return per kilometre is lower due to the country’s low population density.
The second factor is the historically shaped structure of the gas transportation system, influenced by geographic aspects. By the time Kazakhstan gained independence, it inherited trunk gas pipelines that mostly ran through the western part of the country (e.g., Central Asia-Center and Bukhara-Urals). The southern regions of Kazakhstan were partially supplied with gas through trunk pipelines such as BGR-TBA and Gazli-Shymkent. These pipelines were primarily designed to transport gas extracted in the Central Asian republics of the Soviet Union (Uzbekistan, Turkmenistan, Kazakhstan) to the northwest for further delivery to Europe.
To meet the internal needs of Kazakhstan, it was necessary to identify domestic gas resources and build new trunk routes, such as Kazakhstan-China and Beineu-Bozoy-Shymkent (our main artery), along with the Saryarka pipeline extending from it to the capital. Due to the geography of our fields and the vast expanse of the country, Kazakhstan must transport gas from the west to the east over considerable distances. This involves substantial expenses not only for construction but also for maintaining the infrastructure. For instance, delivering gas from the western fields to the central and northern regions requires laying pipelines approximately 1,500 kilometres long.
The third factor is the specific nature of gas production in Kazakhstan. Nearly all the gas produced and supplied to the domestic market is associated gas obtained during oil production. As you know, associated gas is also used at fields to maintain reservoir pressure and sustain oil production rates. Therefore, Kazakhstan must strike a balance in how associated gas is utilized.
– Armenia, a non-gas-producing country, also shows similarly high gasification levels. What is holding back gasification in Kazakhstan?
– Armenia has a population of just 3 million people and a small territory with well-developed transportation routes. The compactness of its land and population allows for quicker infrastructure development.
However, I would also highlight Kazakhstan’s significant achievements! Currently, the level of gasification in five regions of Kazakhstan (West Kazakhstan, Atyrau, Aktobe, Mangystau, and Zhambyl) and two cities of national significance (Almaty and Shymkent) already exceeds 90-95%. Kazakhstan is steadily increasing access to gas: the total population with gas access now exceeds 12 million people, equal to the combined populations of Belarus and Armenia.
Thus, regarding regional gasification, Kazakhstan faces far more complex technical and economic challenges, further complicated by the need to ensure supply independence.
In March of last year, at a session of the National Kurultai, the President of the Republic of Kazakhstan, Kassym-Jomart Tokayev, set the goal of providing an additional 300,000 citizens with access to natural gas. For this purpose, Samruk-Kazyna JSC, in collaboration with the government, allocated approximately 195 bln tenge for 2024. As a result, according to the Ministry of Energy, about 92 additional settlements have been gasified.
Despite the challenges, we are achieving our objectives and moving forward, focusing on priority areas such as improving the quality of life for citizens, developing industry, and enhancing environmental conditions.
– In recent years, following the commissioning of the Saryarka trunk gas pipeline, active gasification has begun for settlements along the pipeline route. However, in most cases, the gas reaches neighbourhoods and residential areas on the outskirts of cities such as Karaganda and Astana rather than the city centers. Why is this?
– The logic of constructing gas networks in settlements always follows this pattern: from the trunk gas pipeline, a branch is built with the installation of an automatic gas distribution station (AGDS). This station reduces pressure from trunk pipeline levels to high distribution pressure, not exceeding 1.2 MPa. From the AGDS, a supply pipeline is laid to the main pressure reduction station (PRS), which is typically placed outside residential areas and closer to so-called "anchor consumers," such as thermal power plants (TPPs) and large industrial consumers. These are usually located on the city's outskirts and have gas consumption needs comparable to the total consumption of the city's population.