On Wednesday, 1 November, the head of Russia’s Gazprom, Alexey Miller, signed documents with Kazakhstan, Kyrgyzstan and Uzbekistan focused both at deepening cooperation in the energy and gas sector, and also cementing the basis for further increasing Russian natural gas supplies to Central Asia.
Among the signed documents, according to the press service of Gazprom, the following:
- Memorandum on cooperation in the development of the gas industry of the Kyrgyz Republic (signed with the Minister of Energy of the Kyrgyz Republic Taalaibek Ibrayev) – The document is aimed at long-term cooperation in the gas sector, as well as at exploring the possibility of cooperation in the electric power industry. The parties also discussed the readiness of the country’s gas transportation and gas distribution systems to work in the autumn-winter period.
- Agreement on strategic cooperation with Kazakhstan (signed with First Deputy Prime Minister of Kazakhstan Roman Sklyar) – The document is aimed at developing cooperation in the field of supply, transportation and processing of natural gas, as well as its exploration and production. The parties discussed the progress and prospects of cooperation in the gas sector.
- Strategic Memorandum on cooperation in the energy sector with Uzbekistan (signed with the Minister of Energy of Uzbekistan Zhurabek Mirzamakhmudov).
LONG-TERM HORIZONS
On the sidelines of the St. Petersburg International Gas Forum, where the documents were signed, Miller said that the purpose of the signed memoranda is to bring a legally binding contractual framework for cooperation with Kazakhstan, Uzbekistan and Kyrgyzstan for 15 years ahead with a long-term agreement possible by mid-2024. (TASS, 1 Nov)
Russia, Uzbekistan, and Kazakhstan are discussing further expansion of Russian gas supplies and expansion of gas transportation capacities in Kazakhstan through the Central Asia-Center gas trunk pipeline system to meet the growing needs of consumers in these countries, according to Gazprom CEO Alexei Miller.
HIGH ECONOMIC GROWTH RATES OF UZBEKISTAN AND KAZAKHSTAN ARE DRIVING RUSSIAN GAS SUPPLIES TO THE REGION
Miller called the high growth rates of the economies of these countries the main reason for the supply of Russian gas to Uzbekistan and Kazakhstan.
“We have given a second life to the Central Asia—Center gas trunk pipeline system, and for the first time Russian gas enters Uzbekistan in reverse mode through Kazakhstan. The reasons for such a project and the reasons for the supply of our Russian gas, of course, lie in the fact that both Kazakhstan and Uzbekistan are currently developing at a high pace, economically at a high pace. And, as you know, economic growth is an increase in energy consumption. The pace is high,” he said. (Gazprom, 1 Nov)
GAZPROM, KAZAKHSTAN AND UZBEKISTAN ARE PREPARING INFRASTRUCTURE AND ROUTES TO INCREASE SUPPLIES
Miller presented several options for routes designed to increase the flow of Russian gas to Kazakhstan and Uzbekistan during the plenary session of the St. Petersburg International Gas Forum. (TASS, 1 Nov)
Summarizing Miller’s remarks, the following options and progress on them can be highlighted:
- The possibility of gasification of the northern, north-eastern regions of Kazakhstan from the territory of Russia. A new route for the gasification of Astana, which is being jointly worked out and has already undergone a feasibility study.
- Bukhara-Ural gas pipeline to increase gas supplies to Kazakhstan and Uzbekistan (option under consideration)
- Reconstruction of the Central Asia – Center gas pipeline
- New gas transportation routes that may appear.
SUPPLIES TO “THIRD COUNTRIES” POSSIBLE
In addition, Gazprom does not exclude gas transit through Uzbekistan, Kazakhstan and Kyrgyzstan to third countries.
Miller said that “such an opportunity also exists,” but first and foremost, the needs of these three countries must be met. ///nCa, 3 November 2023