Pipeliners

26 February 2008 - Upstream OnLine - Kazakhstan is planning a new $3.8 billion domestic gas pipeline in a bid to reduce its dependence on gas imports, Prime Minister Karim Masimov said at a government meeting today. The pipeline is to connect the country’s energy-rich west with the heavily populated south, according to a Reuters report. Kazakhstan is a big oil producer but depends on gas imports from neighbouring countries such as Uzbekistan to generate electricity. Uzbekistan sparked concern in southern Kazakhstan last month when it briefly cut flows due to higher domestic consumption. The 1500 kilometre pipeline, due to be built by 2011, will connect Beineu in the west with Samsonovka in the south and is expected to initially supply 5 billion cubic meters of gas a year and then 10 Bcm per year from 2014. Some analysts have expressed doubt over the project's feasibility due to Kazakhstan's limited gas reserves and say it is unclear which deposits will feed the pipeline. Kazakhstan’s gas reserves are estimated at 2 Tcm. Masimov said the government had yet to decide how the project would be financed. Separately he said the government would give state energy company KazMunaiGas a licence to develop the Urikhtau gas deposit with estimated reserves of 40 Bcm.