President Tokayev: "We need new approaches to regulating the gas market"

President of Kazakhstan Kassym-Jomart Tokayev instructed the Cabinet of Ministers and the State Fund “Samruk-Kazyna” to increase the resource base for the production of commercial gas and develop new approaches to market regulation at an government meeting on January 26, 2021.

According to the head of state, the era of the oil industry is coming to end against the background of active promotion of the green energy in the world. Developed countries have committed to becoming carbon neutral by 2050. In this regard, new incentives are needed for intensive development of hydrocarbon raw materials and replenishment of the national fund.

“Today, the domestic natural gas market is still over-regulated. This hinders the increase in the resource base, investments in geological exploration and the construction of gas processing facilities. The consumer market is actively growing. By 2027, commercial gas consumption is expected to increase to 26 billion cubic meters. There is a risk of a shortage.” the President of Kazakhstan said.

Kassym-Jomart Tokayev believes that it is necessary to improve the efficiency of the national operator in the gas sector and transfer the relevant functions from the national company “KazMunayGas” to it. The head of state instructed the government, together with Samruk-Kazyna, to develop new approaches to regulating the gas market, as well as to take measures to increase its resource base.

In addition, the President instructed the government to take measures to accelerate the construction of petrochemical plants and create attractive conditions for potential investors by December 1.

Source.