Indirect Economic Impacts

KMG is investing in infrastructure. According to the Group of companies of KMG, city-forming enterprises invest in social facilities, sports facilities. However, these investments for the company are non-core activities.

Implementation of projects on gasification of the RoK’s regions

JSC NC “KazMunayGas” through its 100 % subsidiary organization of JSC “KazTransGas”* makes a significant contribution to the development of the regions of the Republic of Kazakhstan, increase social and economic potential and improve the welfare of the population of the regions. Within the framework of the gasification program for the regions, JSC “KazTransGas” continues work on gasification and modernization of the settlements of the Republic of Kazakhstan.

In 2017 work on the project “Gasification of settlements and modernization of gas distribution networks of the Aktobe region” was completed with a total cost of KZT 20 billion. In the project’s boundaries:

  • laying gas pipelines with a total length of 660 km, including a gas pipeline 173 km, high pressure 131 km, medium pressure 66 km, low pressure 290 km;
  • 6 AGDSs, 13 FGUs, 158 GDPs were installed;
  • Ten settlements of the Aktyubinsk region have been gasified: Irgiz village of Irgiz district, Komsomol village of Aitekebi rayon, Bogoslovka village of Alginsky district, Akkuduk village of Khromtau district, Altyndy village of Mugalzharsky district, Yenbek village and Taldysay village of Mugalzharsky district, Kosestek village of Kargalinsky district, Zhaisan village of Martuk district, village of Uil of Uil district. In general, in 2017 the population of the region consumed 817 MMcm of gas.

At the same time, JSC “KazTransGas” is also continuing to invest in the gasification of the regions:

“Modernization of the gas distribution network of the city of Taraz.” The project envisages replacement of low-pressure steel pipelines with polyethylene medium pressure in low-rise sector, replacement of dilapidated underground gas pipelines, installation of individual SHGRPs with SMART-card directly for each consumer of low-rise buildings. Following the results of 2017:

  • gas pipelines with the length of 82.29 km have been constructed for 1 start-up complex of 2 stages:
  • individual closets are installed – 2,596 pcs.

In total, in 2017, the population of the city of Taraz consumed 459 MMcm of gas.

“Modernization, reconstruction and new construction of gas distribution networks of settlements of Mangistau Region”. The project is aimed at modernization and reconstruction, as well as the construction of gas networks in Mangistau region in order to improve reliability and improve the quality of services, eliminate gas shortage for consumers due to insufficient performance and unsatisfactory technical condition of gas networks. Within the framework of the project in 2017, KZT 23 billion of investments were invested.

In 2017, 737.44 km of gas pipelines were laid, including: high pressure 383.65 km, medium pressure 47.65 km, low pressure 306.14 km.

Installed: AGDSs – 6 pcs, GDCs – 23 pcs, FGUs – 28 pcs. 11 objects previously approved in the investment program were completed in the specified terms and put into operation. Five settlements of the region were gasified: Beyneu, Borankol, Batyr, Zharma, Baskuduk.

“Expansion of gasification of settlements of the Kostanay region”. As of 01.01.2018 in the Kostanay region, six settlements were gasified within the project: Kachar village of Rudny town, Oktyabrsky village, Lisakovsk village, Toguzak village, Karabalik district, Antonovka, Alyanovka, Denisovsky district, and Rudny town – continued gasification. In general, in 2017, the population of Kostanay Oblast consumed 364 MMcm of gas.

Investments in the gasification of regions, in addition to providing access to gas, also introduces other positive effects in the social and everyday life of the population:

  • gasification of new territories will allow to create employment of the population in the operating organizations through work directly on the objects of gas distribution pipelines and AGDSs;
  • transfer of the main industrial facilities to the ecological type of fuel – natural gas, improves the ecological situation in the regions;
  • the comfort of living of the population in the region rises, the working and living conditions improve.

Capital expenditures (KZT billion)

Key investment projects with a social impact (KZT billion)

* The company manages a centralized infrastructure to transport marketable gas through main gas pipelines and gas distribution networks, provides international transit and sells gas in the domestic and foreign markets, develops, finances, builds and operates pipelines and gas storage facilities. Pursuant to Decree No. 914 of the Government of the Republic of Kazakhstan as of July 5, 2012, KazTransGas JSC was designated as the National Operator for gas and gas supply