It's about energy security - Expert on Kazakhstan-Turkmenistan gas cooperation

She noted that the long-term nature and importance of such cooperation is consolidated in the Agreement on Strategic Cooperation on Gas Industry Development, under which national companies QazaqGaz and Turkmengaz operate.

Galkynysh project: Expanding Kazakhstan’s role as a gas hub

Marmontova notes that Galkynysh, one of the world’s largest gas deposits, offers Kazakhstan significant advantages.

“First of all, it is a resource base for supplying gas to the country’s south. Secondly, it diversifies sources and reduces dependence. Turkmenistan, ranking fourth globally in gas reserves, is a logical partner. For us, having several suppliers minimizes force-majeure risks,” she explained.

Apart from resource security, Kazakhstan’s involvement in the project opens opportunities for the development of its own gas transport system.

“It means involvement in delivery routes both northward and toward China and South Asia. This also creates prospects for diversifying our economy, because we can develop service, engineering companies and strengthen Kazakhstan’s role as a regional gas hub,” Marmontova added.

TAPI pipeline: Access to South Asian markets

Another promising area in the development of the bilateral gas cooperation is the Turkmenistan-Afghanistan-Pakistan-India main pipeline.

Its length exceeds 1,800 kilometers, while its projected capacity is 33 billion cubic meters, a significant portion of which will come from the Galkynysh field.

“Our application for a stake in the Trans-Afghan gas pipeline means obtaining the status of one of the key shareholders. A share in the revenues represents economic opportunities, as Kazakh gas will enter the pipeline through the same swap schemes, through the project expansion,” explains Marmontova

She stressed that Kazakhstan’s involvement in the construction of the main pipeline will simultaneously boost demand for metallurgical products, maintaining services and related industries - from steel delivery to maintaining infrastructure. This, in turn, provides new niches for Kazakhstan’s businesses in the related sectors.

The expert sees the special strategic importance of this pipeline in opening access to South Asian markets.

“Strategically, participation in TAPI will strengthen Kazakhstan’s role as a transit hub. Because if, in the course of developing projects with China and Russia, we speak about our bridge between East and West, now it is also a bridge to the south, toward the vast market of South Asian countries - India and Pakistan. Moreover, even taking into account the specifics of the Afghan route, Kazakhstan’s readiness to consider participation at the shareholder level shows that this is not only about image, but also about a long-term commitment to developing regional connectivity,” she noted.

The expert also drew attention to Kazakhstan’s transit role in the Turkmen gas supply along other important gas pipeline.

“At the same time, the transit of Turkmen gas to China via the Central Asia-China gas pipeline continues, which increases the load on Kazakhstan’s gas transport system and enhances mutually beneficial regional infrastructure connectivity.

Turkmen gas imports - optimal solution for energy security in southern Kazakhstan’s 

Apart from joint projects, Turkmen gas plays a tangible role in the provision of Kazakhstan’s south with gas. Last year, the cost of Turkmen gas imports reached some $150 million, reflecting substantial volumes.

“This amount shows that the volumes are far from being symbolic. One should understand the context: most gas is produced in the west of the country, while the shortage is particularly acute in the south. Transporting gas through pipelines from Karachaganak or Tengiz is time-consuming and expensive. Turkmen gas is geographically closer, so it's cheaper than transporting domestic gas across the country,” Marmontova says.

She adds that the gas production structure itself in Kazakhstan creates demand for import, as much of its gas is associated gas, with large volumes reinjected to maintain oil output. As a result, less gas is supplied to the domestic market than is physically produced, which increases the need for supplies from the nearest neighbor.

Moreover, the import of Turkmen gas gives Kazakhstan additional advantages: it reduces the load on coal-based power generation, which is important for ecology, and diversifies imports. In addition, importing Turkmen gas allows Kazakhstan to free up its own gas for processing and obtain products with higher added value.

"Last year, Kazakhstan produced about 50 billion cubic meters of gas, but roughly half had to be reinjected into the reservoir, leaving around 29-30 billion cubic meters for the domestic market. Given the rise in demand for gas, this creates a shortage and imposes certain restrictions on exports. Accordingly, in this sense, the agreements that have been concluded represent a shift toward a long-term model of cooperation,” Marmontova said.  

Earlier, Qazinform News Agency reported that during the state visit of the President of Turkmenistan to Astana, Kassym-Jomart Tokayev and Serdar Berdimuhamedov signed a Joint Statement and 11 documents.