Connection Has Been Achieved. Implementation of ‘Saryarka’ Gas Pipeline Phase One Has Been Completed

The Chairman of the Management Board of “Baiterek” National Managing Holding” JSC, Aidar Arifkhanov, has attended the solemn ceremony organized on the occasion of the successful completion of the last stage of pipeline welding during the construction of ‘Saryarka’ main gas pipeline.

Today, workers of KazStroiService (the project’s general contractor) have welded a joint between the pipes next to the fenced pipeline section near the city of Nur-Sultan. After that, the heads of national companies and institutions involved in the implementation of this grandiose project made a symbolic gesture by signing on the surface of the pipeline.

The ceremony was also attended by the heads of subsidiaries: the Chairman of the Management Board of the “Development Bank of Kazakhstan” JSC Abai Sarkulov, the Deputy Chairman of the Management Board of “Kazyna Capital Management” JSC Asset Sagimbekov.

The project for ‘Saryarka’ gas pipeline construction along the route of “Qaraozek (Kyzylorda Oblast) - Zhezqazghan - Qaraghandy - Temirtau - Nur-Sultan” is being implemented by “AstanaGaz KMG” JSC, a subsidiary company of “Samruk-Kazyna” JSC and a subsidiary fund of “Kazyna Capital Management” JSC.

The total cost of the project is 267.3 billion tenge, including 80.3 billion tenge provided by shareholders on a parity basis, 187 billion tenge raised through the placement of “AstanaGas KMG” JSC bonds. At the same time, 102 billion tenge were attracted from the “Development Bank of Kazakhstan” JSC and the Eurasian Development Bank.

The DBK, which is financing large-scale industrial projects, provides not only classic loans, but also through the purchase of bonds. In July of this year, the DBK allocated an amount of 51 billion tenge for the construction of the gas pipeline for a period of 10 years.

It should be recalled that the project implementation was initiated in the late 2018 in order to fulfill “Five Social Initiatives of the President” Address of the First President of the Republic of Kazakhstan - Yelbasy, Nursultan Nazarbayev, to the People dated March 5, 2018. Welding works were started on March 21, 2019. Construction completion is expected in the end of 2019.

The gas pipeline construction enables gradual supply of ‘blue flame gas’ to 171 settlements with a population of up to 2.7 million people.

- I would like to emphasize that this project has not only a social focus, but also a big contribution to environmental protection. Indeed, the commissioning of the gas pipeline will allow reducing emissions of pollutants by 6 thousand tons per year by 2024. In addition, we are expecting that when the project reaches its planned capacity, the country's budget will be receiving almost two billion tenge of tax revenues annually from the enterprise, - Aidar Arifkhanov informed.

Now, the city akimat will be engaged in bringing the ‘blue flame gas’ to the houses of the capital’s residents.

It is worth noting that four regional gasification projects have been financed in 2015-2018 at the expense of Baiterek Holding’s investments through its subsidiary, the “Development Bank of Kazakhstan” JSC. In addition to ‘Saryarka’ gas pipeline, these are the projects such as modernization of gas distribution networks in the city of Taraz, South Kazakhstan and Aktobe oblasts, as well as gasification of five settlements in Kyzylorda Oblast.