Kazakhstan unveils plans to expand gas storage capacity

Kazakhstan intends to construct underground gas storage facilities between 2025 and 2029 to support the expansion of the country’s gas sector, according to a plan prepared by the energy ministry.

Kazakhstan wants to expand use of natural gas as an energy source, to increase energy access across the country and reduce coal use. To achieve this, it aims to expand infrastructure for gas transport and storage, increase development of its own reserves and import more gas from Russia.

This year, state gas company QazaqGaz plans to identify prospective structures for new underground gas storage facilities. The capacity of the existing Bozoy underground storage site in Kazakhstan’s Aktobe region will also be expanded to 4bn cubic metres (bcm) by 2028. The energy ministry, QazaqGaz, and its subsidiary Intergas Central Asia are responsible for the project.

The authorities also plan to expand the Aktobe underground storage facility in stages until 2029, following an increase in its seasonal gas withdrawal rate to 130mn cubic metres (mcm). Additionally, QazaqGaz will reconstruct gas regulation units at the Poltoratskoye underground facility by 2027, which includes drilling new wells to increase daily gas withdrawal volumes.

The total funding required for these projects has yet to be determined and will be set at a later stage.

One of the key gas transport projects planned is the construction of a second string along the (BBS) Beineu–Bozoy–Shymkent gas pipeline, scheduled for completion in 2026. In 2028, Kazakhstan also plans to commission the KS-Kostanay gas pipeline, connecting a compressor station in the Aktobe region to the city of Kostanay.

Construction of the Taldykorgan–Usharal gas pipeline, valued at KZT131.7bn ($268mn), is expected to be completed in 2026 with financing from borrowed funds. The fourth and final stage of the Saryarka gas pipeline project is set for completion in 2027.

By 2026, Kazakhstan also plans to complete major repairs on the Central Asia–Centre 4 (CAC-4) trunk pipeline and launch complexes 2, 3, and 4 of LSAC-4. These upgrades will increase the transit of Russian gas through Kazakhstan to Uzbekistan and ensure stable gas supplies for the domestic market. The total cost of this project is estimated at KZT369bn ($750mn), with QazaqGaz and Intergas Central Asia funding it through a mix of their own resources and borrowed funds.

The construction of a looping section of the Karachaganak–Oral gas pipeline, intended to transport gas from the planned Karachaganak gas processing plant, is expected to require KZT85.4bn ($173mn). The financing structure for this project is yet to be determined, with QazaqGaz and Intergas Central Asia set to participate.

Additionally, QazaqGaz and QazaqGaz Aimaq plan to invest KZT112bn ($230mn) of their own and borrowed funds in the digitalisation of regional gas transportation and distribution. This initiative includes the installation of remote data transmission devices and the implementation of related information systems.