Kazakhstan will compete with Russia for gas exports to China

Kazakhstan is negotiating to increase natural gas exports to China, including possible supply through a new pipeline. This could put Kazakhstan in competition with Turkmenistan and Russia.

Despite the slowdown in China's economic growth, the demand for gas there continues to grow. Kazakhstan hopes to reach an agreement to increase exports not only to China, but also to other countries such as Uzbekistan.

Currently, Kazakhstan exports 4 billion cubic meters of gas to China annually, which accounts for almost all of the country's gas exports (which reached 5 billion cubic meters in December last year). Domestic gas consumption in Kazakhstan is 21 billion cubic meters per year, but the country is striving to increase both domestic supplies and exports in order to increase revenues. The main market for this, of course, is China.

To expand exports, Kazakhstan cooperates with oil and gas companies in the Caspian region to stimulate production growth. In particular, a new price formula for gas is being developed. In the next five years, the government plans to increase production by 3.5 billion cubic meters per year with the help of Qatari investments.

Increasing exports to China will require the construction of a new pipeline to the existing one, which is now 70% loaded. The cost of the project is estimated at $3-6 billion, and a decision on its implementation is planned to be made at the end of the year. The construction of the pipeline can take from two to three years.