New Maximum Wholesale Gas Prices to be Set in Kazakhstan from July 1

A draft order of the Minister of Energy has been prepared, which introduces changes to the maximum prices for wholesale sales of commercial gas on the domestic market of Kazakhstan, The Caspian Post reports citing Zakon.kz.

The adjustment of maximum prices is planned from July 1, 2025.

As explained by the Ministry of Energy, the ongoing gasification of the population of Kazakhstan, the connection of energy and industrial facilities increases the demand for domestic consumption of commercial gas.

The established maximum wholesale prices for commercial gas remain below cost, which makes its supply within the country unprofitable and creates risks of shortage. According to forecasts, if current prices are maintained, the risk of gas shortage will become critical after 2026, the justification says.

It is indicated that in order to avoid a shortage of commercial gas and increase the investment attractiveness of the industry, changes are being made to the regulatory framework, providing for a revision of maximum wholesale prices on the domestic market.

According to industry expert calculations, achieving minimum profitability requires an annual adjustment of wholesale prices by an average of 33% over the next three years. Prices will be set separately for each region, based on objective regional costs for purchasing, transporting and storing commercial gas.

According to forecast data, gas consumption will increase from 21.2 to 32.4 billion cubic meters by 2028. In this regard, the likelihood of a shortage of commercial gas increases, which creates risks for the country's energy security.