Oil Ministry: Kazakh gas might be transferred to China rather than Russia

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9 March 2013, 17:30 (GMT+04:00)

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Kazakhstan, Astana, Mar. 7 / Trend D. Mukhtarov /

If Kazakhstan doesn't reach an agreement with Russia over the price of gas from the Karachaganak field, this gas might be diverted to China, the Minister of Oil and Gas Sauat Mynbayev stated during his speech in parliament on Thursday.

"Some seven billion tons of gas from the Karachaganak field are transferred to the Orenburg gas processing plant. We get back 

4.5 billion tons of gas through swap operations, including for Kostanai, south and West Kazakhstan Province. We still have some questions concerning the price for the remaining 2.5 billion cubic meters of gas. If we don't reach an agreement over this price starting 2015, it will be redirected to the south and possibly to China upon commissioning of the Beineu-Bozoi-Shymkent pipeline," Mynbayev said.

According to the minister, it is expected that the construction of the pipeline will be completed in autumn 2014.

"We have the law on gas that sets the single maximum wholesale price for a given area. Unfortunately, requirements of the law have not been fully met. The price issue is quite sensitive and difficult and is currently under consideration by the Ministry of Economy and Anti-Monopoly Committee," Mynbayev said.