Industry Trend Analysis - Clambering For China Foothold - SEPT 2017

BMI View: Gaining an export foothold in China will be vital to secure an offtaker for rising gas production given the limited domestic opportunities.

Kazakhstan is due to start exporting gas to China in 2017/2018 following a memorandum of understanding signed in June between KazMunaiGas and CNPC for up to 5bcm per year. Kazakhastan has a 5bcm allotment in the Central Asia-China Gas Pipeline which is under expansion and due to be completed by 2017. The pipeline currently sends Turkmen and Uzbek gas into China. Growing exports routes is absolutely vital for Kazakhstan given the limited domestic consumption potential.

Gas Production On The Rise

Steady Gas Production Growth
Kazakhstan Natural Gas Production Forecast
f= BMI forecast. Source: BMI, EIA

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