Russia – Kazakhstan – China: new strategy in power engineering

The directions of export routes of hydrocarbons transportation depend on a set of factors: political and economic situation in the world, loudspeakers of branch and development of the potential markets of oil and gas, ideological and religious installations of the countries participating, both in production and in transportation of hydrocarbons. Events in Ukraine eloquently confirm it.

Not so long ago the Ukrainian mass media reported that the authorities of the country consider possibility of the partial or full termination of transit of the Russian energy resources on the territory. It isn’t difficult to guess that it caused a big resonance in Europe — the prospect to remain without gas on the eve of winter frightens the Europeans. Moscow also answered with rough reaction. After all there are two main export goods of Russia through Ukraine to Europe: oil and gas. Income from their sale in total forms about a half of the federal budget.

As for oil, so 14 million tons in a year pass through Ukraine. In case of transit closing Russia will be able to throw a half of this volume on Ust-Luga port on the Baltic Sea, 7 million more tons — on the northern branch of the Friendship pipeline passing through the territory of Belarus.

With gas the situation is more difficult. Up to 50% of the European gas export of Russia goes through Ukraine. If Kiev is blocked by transit of energy resources, both Europe, and Russia, will appear in a difficult situation: the first will suffer the deficiency of fuel, the second — its surplus.

In these conditions for decrease in dependence on the transit countries «Gazprom» gradually carries out transition to the standard principles in world gas business of market pricing, and also realizes the gas transmission projects aimed at diversification of export routes. So, signed on May 21 of this year the 30-year contract for delivery of 38 billion cubic meter of natural gas in China between JSC Gazprom and the Chinese national oil and gas corporation CNPC is estimated by the international experts as an important strategic course in the conditions of introduction by the European countries of sanctions concerning the Russian Federation.

«Gazprom» has some more perspective practices in a stock. For example, option of transit of the Russian gas on the territory of the Republic of Kazakhstan to the People’s Republic of China with the use of existing and planned gas transmission capacities of Kazakhstan, and also construction of new gas pipelines on the territory of Kazakhstan, considering the growing needs of the People’s Republic of China for gas.

It is known that being one of the richest with resources CIS countries, Russia and Kazakhstan reached the level of cooperation in the fuel and energy sphere which is estimated today by analysts as unprecedented. Thus gas projects are among the most significant directions of power cooperation of the allied countries.

For example, in December, 2006 «KazRosGaz» — the joint venture of «Gazprom» and its Kazakhstan analog of «KazMunayGas» and JSC Orenburggazprom signed the contract on deliveries of the natural gas extracted on the Karachaganak field to the Orenburg gas-processing plant. The key enterprise of the project «KazRosGaz» began the activity on January 1, 2007. One of the main conditions of its creation was the conclusion of «long time» contacts by term not less than for 15 years, annual processing of 15 billion cubic meter of the gas extracted on Karachaganak, its realization in Russia and Kazakhstan, and also export on «Gazprom» channels to Europe.

The existing scheme of gas pipelines of Kazakhstan more than 11 thousand km long, functioning as a component of the former uniform all-union system, mainly serves transit streams of natural gas from Central Asia in the European part of Russia, Ukraine and to the states of Transcaucasia.

Transit of gas across the territory of the Republic of Kazakhstan is carried out on the main gas pipelines:

• «Average Asia Centre» — in the direction Uzbekistan — Kazakhstan — Russia (the Turkmen and Uzbek gas);

• «Bukhara gas-bearing area — Tashkent — Bishkek — Alma-Ata» — in the direction Uzbekistan — Kazakhstan (the Uzbek gas);

• «Orenburg — Novopskov and MG «Soyuz» — in the direction of Russia (the Russian gas);

• «Bukhara-Urals» — in the direction of Russia (the Turkmen gas).

For 2013 the volume of the international transit of the Russian gas on the territory of Kazakhstan made 54,0 billion cubic meters.

And today our strategic partners, giving us a hand of support in such difficult geopolitical situation, suggest to expand cooperation and to create the joint working group at the level of JSC Gazprom, JSC KazMunayGas Oil Company and the Chinese CNPC for study of questions on transit of the Russian gas in the People’s Republic of China through RK territory.

Really, Kazakhstan has considerable transit potential, and the separate of large gas pipelines in the territory of the Republic can be effectively used in our interests. For example, as consider in «Gazprom», it is quite effectively possible to use large «gas threads» «Bukhara-Urals» (8 billion m3/year), «Bozoy — Shymkent» (10 billion m3/year), «Kazakhstan-China» (5 billion m3/year).

In addition, the transit option with construction of new gas transmission capacities in the territory of the neighbouring state is considered.

Route No.1: (Frontier of the Russian Federation — RK) Ishim — Petropavlovsk — Astana — Karaganda — Druzhba (state border of RK — the People’s Republic of China). Pipeline route extent across the territory of RK — 1670 km. Gas pipeline productivity is 30 billion m3/year.

Route No. 2: (Frontier of the Russian Federation — RK) Semey — Maykapchagay (state border of RK- the People’s Republic of China). Pipeline route extent across the territory of RK — 660 km, productivity is 30 billion m3/year.

Route No. 3: (Frontier of the Russian Federation — RK) Semey — Aktogay — Druzhba (state border of RK- the People’s Republic of China). Pipeline route extent across the territory of RK — 850 km, productivity — 30 billion m3/year.

Besides, in addition, now changes on creation of favourable investment climate are made to the legislation of the Republic of Kazakhstan.

Estimating the general results of cooperation of Russia and Kazakhstan in the power sphere, rightfully it is possible to call them not having analog in the former Soviet Union. The main result of this cooperation is the increasing economic integration of two countries as an example of mutual support during the crisis period and deepening of the developed economic and technological communications.