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    Kazakh Gas Output Down 1.4% in 10M


Exports were down 8.9%, despite Kazakhstan agreeing to double shipments to China last year.

by: Joseph Murphy

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Natural Gas & LNG News, Asia/Oceania, Premium, Corporate, Exploration & Production, Import/Export, News By Country, Kazakhstan

Kazakh Gas Output Down 1.4% in 10M

Kazakhstan produced 27.12bn m3 of commercial gas in January through October, down 1.4% compared with the same period last year, according to energy ministry data published on November 12.

Total gas production – including volumes that were re-injected and flared – rose by 1.5% to 46.3bn m3, while exports slumped 8.9% to 15.3bn m3, despite state-owned KazMunayGas (KMG) striking a five-year deal in October last year to double Chinese shipments to 10bn m3/yr. Wood Mackenzie recently expressed doubt that Kazakhstan would meet this commitment. The country also deliveries some gas to Russia.

Kazakhstan produces the bulk of its oil and gas at three large fields: Kashagan, Karachaganak and Tengiz. It had pinned its hopes on new Caspian Sea projects to broaden its production base, but last month Shell and other investors confirmed they were abandoning plans to develop the offshore Khazar and Kalamkas-Sea fields, located near Kashagan.

The energy ministry confirmed on November 11 that Khazar and Kalamkas-Sea had been returned to state ownership following the investors’ decision. It said it was “developing a road map for further implementation of the projects.”