Saryarka Gas Pipeline Will Provide 2.7 Mln Kazakhstanis with “Blue Flame Gas”

11.07.2019

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“Saryarka” main gas pipeline will provide 2.7 million Kazakhstanis with “blue flame fuel”, and more than two thousand people are involved in its construction today.

 

The project for Saryarka gas pipeline construction along the route of Karaozek (Kyzylorda region) - Zhezkazgan - Karaganda - Temirtau - Nur-Sultan is being implemented by AstanaGaz KMG JSC, which is a subsidiary of Samruk-Kazyna JSC through its trustee – KazMunaiGas NC JSC and Baiterek Venture Fund JSC (from the structure of Kazyna Capital Management JSC).

 

The total construction cost is 267.3 billion tenge, including 80.3 billion tenge provided by shareholders on a parity basis, 187 billion tenge attracted through the placement for two issues of bonds of AstanaGaz KMG JSC. Investors of the first bond issue were UAPF JSC and several insurance companies. The second issue of bonds was placed on July 4, 2017, where the investors were the Development Bank of Kazakhstan JSC jointly with the Eurasian Development Bank.

 

The project implementation was launched in late 2018 in order to accomplish the “Five Social Initiatives of the President” Message of the First President of the Republic of Kazakhstan – Yelbasy, Nursultan Nazarbayev, to the People dated March 5, 2018. The construction completion is expected by the end of 2019.

 

On March 21, 2019, welding works were started within the construction of Saryarka gas pipeline. As of today, 550 km of the linear section have been welded, which is more than 50% of the entire length of the gas pipeline.

 

Along with the gas pipeline construction, an opportunity for gradual provision of “blue flame fuel” to 171 settlements with a population of up to 2.7 million people is being created. During the construction period more than 2 thousand jobs are also being created, as well as about 190 jobs during operation phase.

 

The project has a great social and economic effect. When the project reaches its planned capacity, at least 1.9 billion tenge are expected to be received in the country's economy as tax revenues on an annual basis, improving the environmental condition of Nur-Sultan and other localities along the gas pipeline route. In particular, it is expected to reduce emissions of pollutants by 6 thousand tons by 2024. Moreover, the infrastructure of these settlements will be developing due to this project implementation.

 

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“Baiterek” National Managing Holding” JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. The key institution of the Government of the Republic of Kazakhstan that complies with the advanced standards of corporate governance and ensures the implementation of the objectives for the sustainable development of the economy of Kazakhstan through its diversification, support for innovation, export development, increase in labor productivity. The Holding includes: Development Bank of Kazakhstan JSC, Investment Fund of Kazakhstan JSC, Zhilstroisberbank of Kazakhstan (HCSBK) JSC, Kazakhstan Mortgage Company MO JSC, KazakhExport EIC JSC, Damu EDF JSC, QazTech Ventures JSC, Housing Construction Guarantee Fund JSC, Kazyna Capital Management JSC, Baiterek Development JSC, Kazakhstan Project Preparation Fund LLP.

 

Photo kmg.kz