Page 135 - RusRPTJul23

Uzbekistan and Kazakhstan have experienced significant reductions in the value of their natural gas supplies to China between January and May, according to Azernews citing AKIpress. The export of Uzbek gas to China dropped by 60.71%, reaching $118.63 million, while the export of Kazakh gas decreased by 25.4% to $300.13 million, as reported by TASS referring to the Main Customs Administration of China. However, the physical volume of deliveries was not specified in the reports.
In contrast, Turkmenistan witnessed an increase of approximately 13.5% in gas exports to China, amounting to $4.25 billion. Turkmenistan holds the leading position in pipeline gas supplies to China. In 2022, Turkmenistan exported gas worth $10.25 billion to China, marking a 51% increase compared to the previous year. Meanwhile, Kazakhstan exported gas worth $1.08 billion (a 4% decrease), and Uzbekistan exported gas worth $1.07 billion (a 33.9% increase).
Uzbekistan has seen a notable decline in natural gas sales abroad in recent years due to a rising demand in the domestic market. As a result, the country has increased its gas imports. Similarly, Kazakhstan has been reducing its gas exports due to a similar reason. The growth in domestic demand is attributed to the expansion of gasification coverage in Kazakhstan's regions and the preference of large industrial enterprises, such as Arcelor Mittal, for gas over coal, explained Nurlan Zhumagulov, an expert on oil and gas projects.
Bolat Akchulakov, the Minister of Energy of Kazakhstan, stated last spring that the country's gas consumption is growing at a rate of 7% annually, and Kazakhstan may face a gas shortage by 2025. These developments highlight the shifting dynamics in natural gas trade among Central Asian countries and their focus on meeting domestic energy needs.
9.1.1d LNG news
Various Russian regions have plans to build about 94 low-capacity liquefied natural gas (LNG) plants with a total output of 3.2mn metric tonnes per year, Artyom Verkhov, gas industry department head at the Energy Ministry, said on June 20.
"The [relevant] regions will announce their demand [projections] and construction plans for building about 94 low-capacity LNG plants by 2030," the official said. "The planned gas consumption rate of these plants will be about 6bn cubic metres and production volumes will be 3.2mn metric tonnes," Verkhov said.
Seventeen low-capacity LNG plants are currently on stream across Russia. Their average capacity utilization stands at 49%, Verkhov said.
135 RUSSIA Country Report July 2023 www.intellinews.com