Kazakhstan will target gas and oil processing

Significance

President Kassym-Zhomart Tokayev has made stable and sufficient supplies a governmental priority. He ordered the cabinet to rationalise domestic gas distribution, slow the pace of shifting thermal power plants and households from coal to gas, and accelerate the construction of several gas processing facilities.

Impacts

• Chronic underinvestment in gas exploration and production will keep a lid on the tempo of gasification.
• Politically motivated LPG price controls will delay strategic investments aimed at boosting domestic production.
• High construction costs will further deter plans for the fourth large oil refinery.