Kazakhstan Strengthens Gas Exports to China in 2025

QazaqGaz and PetroChina have signed an agreement to increase Kazakh gas exports to China in 2025. This expansion is part of a broader strategic energy cooperation between the two countries, further solidifying their commercial and economic ties.

Share:

QazaqGaz, Kazakhstan’s leading gas operator and a subsidiary of the sovereign wealth fund Samruk-Kazyna, has finalized a new agreement with PetroChina to expand its gas exports to China in 2025. The announcement follows the signing of an amendment to the original gas supply contract established for the 2023-2026 period.

An Agreement Expansion for Strengthened Cooperation

The extension to the three-year contract was formalized during a Kazakhstan-China economic forum in Astana, bringing together the leaders of both companies. QazaqGaz Board Chairman Sanzhar Zharkeshov and PetroChina International Executive Chairman Wu Junli signed the agreement, which provides for an increase in gas volumes exported to China starting next year.

In October 2023, during Kazakh President Kassym-Jomart Tokayev’s visit to China, an initial agreement was signed to supply 10 billion cubic meters of gas over three years. The revision of this contract aims to increase these volumes to meet the growing demand in the Chinese market.

A Transforming Gas Sector

With a pipeline network spanning over 76,000 kilometers, including 20,000 kilometers of main gas pipelines, QazaqGaz plays a central role in gas distribution and exports in Central Asia. In addition to its partnership with PetroChina, the company collaborates with other regional players, notably facilitating the transit of Russian gas to Uzbekistan and Kyrgyzstan through an agreement signed with Gazprom in June 2024.

According to official figures, Kazakhstan exported 2.3 billion cubic meters of gas to China between January and August 2024, valued at $575.7 million. At the same time, the country continues negotiations for new infrastructure projects, including an additional pipeline, to increase export capacity.

Balancing Exports and Domestic Consumption

While Kazakhstan is ramping up exports, the domestic market remains a priority. With national gas consumption estimated at 21 billion cubic meters per year, the government maintains a policy of subsidized gas prices for the domestic market, pushing QazaqGaz to seek more profitable external markets.

By increasing sales to China, Kazakhstan aims not only to strengthen its commercial relations with its Asian neighbor but also to balance its gas market in response to domestic pricing constraints.

Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.