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.

Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
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.