Deputy Prime Minister of the Russian Federation Alexander Novak confirmed that the possibility of creating a gas union between Russia, Kazakhstan and Uzbekistan is being discussed. TASS writes that it is assumed that the parties will cooperate on shipping, exports, gas processing and other forms of cooperation.
“Yes, such areas of cooperation are being considered, since Russia, Kazakhstan and Uzbekistan have a single gas transport system since the USSR. In fact, we have great opportunities to expand mutual cooperation, including gas supply and processing. For deliveries to other export points, ”quotes the agency.
Novak added that China could be one of the directions.
Presidents of Kazakhstan and Russia Kasım-Jomart Tokayev and Vladimir Putin discussed the establishment of the “tripartite gas union” at the meetings in Moscow. This was announced by the press secretary of the Kazakh leader Ruslan Zheldibai.
“It was about creating a “tripartite gas union” of Russia, Kazakhstan and Uzbekistan to coordinate actions on the transport of Russian gas through the territory of Kazakhstan and Uzbekistan,” Tengrinews.kz said.
Tokayev’s representative added that the heads of state decided to first hold detailed negotiations on this issue, in which experts from the three countries would participate.
On November 28, Tokayev reported that Putin had raised the issue of forming a “triple alliance” in a meeting with him. He stressed that the Kazakh side must “understand the issue” in order to achieve the desired results. He expressed this in a meeting with Russian Prime Minister Mikhail Mishustin.
“There are issues that require additional coordination and even negotiation, we are talking specifically about the gas sector. But we are not dramatizing any questions here. I just said [президенту России] Vladimir Vladimirovich [Путину]”What problems are there that need to be discussed, but absolutely not dramatized,” Tokayev said.
According to him, these questions work. Tokayev is confident that an agreement can be reached. “HE [Владимир Путин] I will call the President of Uzbekistan. “To achieve the desired results and agreements, at least for me, we need to delve deeper into this issue, not to mention our experts.” alliance”.
Tokayev arrived in Moscow on November 27 at Putin’s invitation. The next day, they met within the framework of the XVIII Interregional Cooperation Forum between Russia and Kazakhstan. This is Tokayev’s first foreign visit since winning the last presidential election.
During the meeting, the President of Kazakhstan expressed his hope for the lifting of restrictions and the creation of mutually beneficial conditions for trade between Kazakhstan and Russia. This will be “the key to high-quality economic growth” in Russia and Kazakhstan.
Gas industry in Kazakhstan
In the summer, Sanzhar Zharkeshov, chairman of the board of directors of QazaqGaz, predicted a crisis in the Kazakh gas industry in the coming years. According to him, fuel shortage is predicted from 2024. But if no action is taken, gas exports will stall as early as next year.
Kazakhstan Energy Minister Bolat Akçulakov had previously said that the country would have to try to supply gas to the state independently, rather than export it, to meet domestic needs.
“We foresee a deficit and we will reduce all exports to zero by 2025. Then, the question of where we will find the gas to meet the increasing need other than our own production will come to the fore.
Sergei Kapitonov, an analyst at RBC, Skoltech energy transition project center and ESG, also says that Russia and Kazakhstan have historically collaborated a lot in the gas sector.
As an example, he cited gas supply from Kazakhstan’s Karachaganak field to Orsk GPP. In response, Gazprom sent gas to the Aktobe and Kostanay regions.
Kazakhstan cannot export gas anywhere except China and Russia. Kapitonov expressed the opinion that with the increasing needs of the domestic market, Kazakhstan may have problems in exporting to China.
According to him, the creation of a single EAEU gas market is currently on the agenda. The expert suggests that unresolved issues may remain between Russia and Kazakhstan.
“The production and consumption curves are diverging” in Kazakhstan, writes RBC, citing a source at Gazprom. “When the neighbors need gas, that’s good, we have it,” he emphasizes.