New wholesale gas prices approved in Kazakhstan
The main pipelines, through which the republic's internal gas supply is carried out, have exhausted their assigned resource and have many defects based on the results of diagnostic examinations. The service life of 70% of the gas infrastructure, which is of strategic importance in ensuring energy security both in the context of regions and throughout the country, exceeds 40 years.
According to the legislation of the Republic of Kazakhstan, the state regulation of the wholesale price of commercial gas is carried out by the Ministry of Energy, the retail price - by the Ministry of National Economy.
To contain the final cost of gas in the domestic market, KazTransGas JSC annually subsidizes the domestic market of the country through gas exports. For 2015-2020, the amount of losses of the National Operator from subsidizing the domestic market amounted to about 425 billion tenge," the message says.
It is noted that the last time the ceiling prices for wholesale sales of commercial gas were adjusted on January 1, 2019, then they were reduced in the range from 3.8 to 17.5% depending on the region and did not increase until now. Currently, the approved maximum wholesale prices for commercial gas for the domestic market are lower than the cost of gas supplied. In various regions, the approved wholesale price is 1.5 to 2.5 times lower than the cost price.
If the ceiling prices for wholesale sales of commercial gas were set at the current level, the costs of the National Operator would increase in the future, and failure to implement investment programs could ultimately lead to an increase in the number of defects in gas pipelines, which could lead to irreparable damage to the country in the future.
Based on the above, the maximum prices for wholesale sales of commercial gas in the domestic market of the Republic of Kazakhstan have been approved for the period from July 1, 2021 to June 30, 2022. According to this order, the maximum wholesale prices have been increased by an average of 11% depending on the region," the Energy Ministry said.
Source: Kazpravda.kz
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Images | primeminister.kz
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