EBRD mulls financing project of providing natural gas service in Kazakhstan

Categories: Central Asia, Kazakhstan, and Monitoring.

Kazakhstan’s Energy Ministry is negotiating with the European Bank for Reconstruction and Development (EBRD) regarding financing the construction of the Saryarka natural gas pipeline. Country’s Minister of Energy Kanat Bozumbayev announced the news at the Government’s meeting on Tuesday.

Speaking at the Government session, Minister Bozumbayev confirmed that the negotiations on attracting borrowed funds from the European Bank for Reconstruction and Development are underway.

According to him, an interdepartmental working group that should determine the conditions and the financing scheme is currently being established and will include representatives of the Ministries of National Economy, Finance, Samruk-Kazyna Fund, KazMunaiGas, as well as the Astana akimat (city administration).

In case the project is approved, it will allow switching 92 private and 48 small communal boiler houses, as well as 22,000 private households and the city’s CHPP-1 and CHPP-3 to natural gas, which will positively impact the ecological situation in the Kazakh capital.

The Minister underlined that the implementation of the project will help reduce emissions by 35,000 tons per year. In addition, according to him, the gas pipeline will facilitate infrastructure development and creation of new production facilities that use natural gas.