The kazakh market has a monthly shortfall of 25,000 tons of liquefied gas

Nursultan, Interfax News Agency, November 9, Kazakhstan's deputy Energy Minister Zhurebekov said at a media briefing on the same day that kazakhstan's monthly supply deficit of liquefied petroleum gas is about 25,000 tons.

Ru said that at present, kazakhstan produces 120,000 tons of LPG per month, while the demand reaches 145,000 tons. It is estimated that the total demand for liquefied gas in Kazakhstan in 2021 will be 1.6 million tons. The number of Kazakh gas vehicles rose to 313,000 140,000 in 2019, one of the main reasons for the LPG supply shortage. Another reason was the suspension of the Pavlodar petrochemical plant the Tejizi Chevron gas processing plant for maintenance. Current LPG production is at the same level as 2019 (1.3 million tons) no new LPG producers will emerge in the future medium term.

Kazakhstan's ministry of Energy will consider cutting the export share of enterprises that fail to fulfill the task of guaranteeing domestic market. Most enterprises should give priority to ensuring supply in the domestic market only have the right to export under the premise of fulfilling their domestic market supply obligations. At present, the Kazakh government has banned the export of LIQUEFIED natural gas by road transportation, is considering banning the export of liquefied natural gas by railway transportation. If implemented, the government will ban the export of liquefied natural gas (LPG), with the exception of companies such as Tengiz Chevron that have already signed contracts.

The Kazakh government decided to fully liberalize the price of liquefied natural gas in 2018. According to the Law on Natural Gas Natural Gas Supply, LNG will be traded through an electronic trading platform (ETP) 2019, the Ministry of Energy of Kazakhstan will formulate a plan for LNG supply in the domestic market on a monthly basis. In this way, the shift state price regulation to market pricing mechanism is gradually realized, so as to balance the interests between LPG producers consumers. Up to now, the proportion of liquefied natural gas sold through electronic trading platforms in the domestic market demand has been significantly increased the initial 5% to 70%. Starting Jan 1, 2022, all liquefied gas supplies will be sold through electronic trading platforms, except for gas for residential use gas for petrochemical enterprises.

In November 2021, the weighted average wholesale price of LPG is 151,000 tenge/ton. The remaining 30% of LPG entered into the electronic trading platform will be allocated in the domestic market according to the regulated price of 433.45 million tenge/ton (including VAT), with retail price ranging 70-120 tenge/liter average retail price of 99 tenge/liter. Kazakhstan's Competition Protection Development Agency will monitor the rationality of LPG pricing. The Ministry of Energy of Kazakhstan will take relevant measures to address the problems within its functional scope to ensure stable supply of liquefied gas.

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Source: International Gas Network

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