Gazprom Looks to Extend Kazakh Gas Supply Agreement

Gazprom and Kazakhstan are looking to extend the long term agreement till 2038 related to sale of gas produced from the Karachaganak gas and condensate field.

Gazprom and Kazakh National Oil and Gas Company, KazMunayGas have been successfully cooperating since 2002 through a joint venture KazRosGas created on a parity basis for the purchase of Karachaganak gas, its processing at Russian Orenburg Gas Processing Plant and subsequent sales to Kazakh and Russian consumers.

In a meeting held between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Uzakbai Karabalin, Minister of Oil and Gas of the Republic of Kazakhstan in Astana on Wednesday, the two parties also discussed the prospects for the joint development of the Imashevskoye gas and condensate field, Gazprom said in a statement.

The cross-border Imashevskoye field is located 60 kilometers northeast of Astrakhan in Russia and 250 kilometers southwest of Atyrau in the Kurmangazy District, Kazakhstan. According to Gazprom, the field contains over 100 billion cubic meters of explored gas reserves.

In addition, the parties looked into the possible development of Russian and Kazakh gas transmission networks.

The explored natural gas reserves of the Republic of Kazakhstan are estimated at 3.3 trillion cubic meters. Natural gas reserves with the account of the Caspian Sea shelf are forecast at about 8 trillion cubic meters.

Gazprom Group sold 4.7 billion cubic meters of natural gas in Kazakhstan in 2013.