ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of September 29, 2023 No. 350

About approval of the General scheme of gasification of the Republic of Kazakhstan for 2023 - 2030

According to subitem 16-2) of article 6 of the Law of the Republic of Kazakhstan "About gas and gas supply" I ORDER:

1. Approve the enclosed General scheme of gasification of the Republic of Kazakhstan for 2023 - 2030.

2. To provide to department of the gas industry of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

1) within five calendar days from the date of adoption of this order the direction it the copy in electronic form in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "Institute of the legislation and legal information of the Republic of Kazakhstan" the Ministries of Justice of the Republic of Kazakhstan for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan after its official publication.

3. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

4. This order becomes effective from the date of its signing and is subject to official publication.

Approved by the order of the Minister of Energy of the Republic of Kazakhstan of September 29, 2023 No. 350

The general scheme of gasification of the Republic of Kazakhstan for 2023 - 2030

Section 1. Introduction

1. The general scheme of gasification of the Republic of Kazakhstan for 2023 - 2030 (further – the General scheme) is the complex document providing strategic directions of priority of ensuring internal needs of the Republic of Kazakhstan for gas.

2. According to the Law of the Republic of Kazakhstan "About gas and gas supply" (further – the Law) further gasification of the country includes achievement of the following main objectives:

1) further development of gasification of the Republic of Kazakhstan with scope gasification of the new territories and providing delivery reliability of gas in the domestic market and accounting of perspective of gas supply in all regions of the Republic of Kazakhstan;

2) upgrade existing and construction of new objects of systems of gasification with connecting crossing points of unified gas supply system;

3) maintenance and development of positive balance of gas resources, and development of commodity gas taking into account the growing amounts of consumption of natural gas in structure of fuel and energy balance of the Republic of Kazakhstan and its effective use in the field of oil and gas chemistry and power.

The solution of above-mentioned tasks is required by acceptances of effective management decisions for long-term outlook taking into account rates of economic development of the Republic of Kazakhstan.

3. The actions for development of the gas industry undertaken in recent years allowed to achieve relative financial stabilization of the gas transmission organizations, growth in volumes of works and technical reconstruction of the pipeline and local gas pipeline systems that affected growth of internal gas consumption.

4. Now conversion of the extracted gas is not fully performed, on number of fields there is no technical capability of allocation and delivery of natural gas from places of its production in transportation system and regions of its consumption.

5. Adoption of the General scheme is directed to consolidation technologically and territorially separate links of gas component in oil and gas complex and creation of single industry system of production, conversion, transportation and delivery to consumers of natural gas in combination with delivery liquefied natural and oil gases.

Section 2. Purposes and tasks of the General scheme

6. The purposes – creation of conditions for sustainable social and economic development of the Republic of Kazakhstan through step-by-step development of transit capacities of trunk gas pipelines and their export potential, and also increase in scope of the population by gas supply through creation of single gas-transport system for complete ensuring need for gas supply at the expense of own resources of gas, as environmentally friendly fuel.

7. The main objectives of the General scheme are:

1) forming of the priority directions of development of gasification of the country and perspective construction projects of new trunk gas pipelines for creation of single gas-transport system of the country and covering of the increasing needs for regions;

2) determination of perspective schemes of transportation of natural gas, placement and upgrade of objects for preparation, conversion and storage of commodity gas, and also delivery and gas sale to consumers in the gaseous and (or) liquefied type;

3) creation of conditions for increase in share of gas consumption in structure of fuel and energy balance of Kazakhstan;

4) development of measures for the state support for development and putting into operation of new gassy fields when forming long-term balance of the country in natural gas;

5) effective interaction of joint-stock company "The QazaqGaz national company (further – the national operator) and local executive bodies in case of gasification projects implementation, and also the organization of stable gas supply of consumers in regions;

6) realization of technical policy on reconstruction and upgrade of objects of gas-transport system for ensuring reliability and ecological safety of work on gas transportation facilities and gas supply on places;

7) implementation of actions for achievement of financial stability of the group of companies of the national operator on maintenance of purchase wholesale prices stimulating increase in resources of gas and supply of commodity gas to the domestic market, and also working off of new schemes and routes of export-import supply of gas;

8) working off of single price and tariff policy on gas sale by categories of consumers for stimulation taking into account market conditions of development of the new directions of effective use of commodity gas and support of fair prices for social objects and the population.

8. Main goal of implementation of the General scheme is ensuring safe and uninterrupted gas supply of the increasing requirements of the population and national economy based on the maximum use of benefits from transit of natural gas, expansion of resource base and effective conducting natural gas export.

At the same time achievement of these purposes assumes increase in resources of commodity gas with increase in gas production on existing and involvement of new fields with growth of development of commodity gas than from the level of 2022 – 27,8 of one billion m3/year to 42,1 of one billion m3/year by 2030. Within the Law of the Republic of Kazakhstan signed by the Head of state "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning transport and subsurface use" the Improved model contract providing preferences for gas projects is accepted: release from the corporate income tax, export customs duty for 20 years from start date of production and the right of transition to the alternative income tax.

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