ASTANA, Kazakhstan, May 2. Kazakhstan's Ministry of Energy has developed an order to revise wholesale price caps for commercial gas, Trend reports.
Specifically, the ministry's website contains information about the order issued by the Minister of Energy titled “On Amendments to the Order of the Minister of Energy of the Republic of Kazakhstan No. 210 dated June 6, 2023, ‘On the Approval of the Maximum Wholesale Prices for Commercial Gas on the Domestic Market.’”
According to the ministry, the ongoing expansion of gas infrastructure for the population, along with the connection of energy and industrial facilities, is driving increased domestic demand for commercial gas. It is emphasized that the established maximum wholesale prices remain below cost, making domestic supply unprofitable and creating the risk of shortages. Projections indicate that if current prices are maintained, the risk of a gas shortage could become critical after 2026.
“To prevent a shortage of commercial gas and to enhance the investment attractiveness of the sector, amendments are being made to the regulatory framework that provide for the revision of wholesale price caps on the domestic market. According to industry expert calculations, achieving minimal profitability requires an annual adjustment of wholesale prices by an average of up to 33 percent over the next three years. At the same time, prices will be set individually for each region, based on objective regional costs for purchasing, transporting, and storing commercial gas,” the statement says.
Moreover, it is noted that the primary goal of these changes is to ensure a stable gas supply to the population and industry amid rapidly growing demand.
The latest forecasts indicate that gas consumption in Kazakhstan will increase from 21.2 to 32.4 billion cubic meters by 2028. In this context, the likelihood of a commercial gas shortage rises, posing risks to the country's energy security.
