100% of the shares of KazTransGas JSC were transferred to Samruk-Kazyna JSC NWF

PRESS RELEASE

Nur-Sultan                                                                                                                                                            November 10, 2021

On November 9, the final transfer of 100% of the shares of KazTransGas JSC from NC KAZMUNAIGGAZ JSC to Samruk-Kazyna NWF JSC (hereinafter referred to as the Fund) took place. Prior to that, KazMunayGas remained the beneficial owner of KazTransGas. Accordingly, the trust management agreement concluded on March 11, 2021 between KazMunayGas and Samruk-Kazyna has been terminated.

It should be noted that the transaction was preceded by the fulfillment of a number of legal and financial conditions, including obtaining approvals from KazMunayGas creditors and relevant government agencies and approval from KazMunayGas creditor banks, including by refinancing individual loans.

The transfer of KTG shares to the Fund was carried out in accordance with the instructions of the Samruk-Kazyna Fund Management Council chaired by the First President of the Republic of Kazakhstan – Elbasy N.A.Nazarbayev dated June 3, 2020, as well as the instructions of the Head of State K.K.Tokayev on the creation of a national operator for gas exploration, production and transportation, given at an expanded Government meeting on January 26, 2021.

Earlier, the President of Kazakhstan Kassym-Jomart Tokayev announced a decision to transform KazTransGas JSC by analogy with the Russian Gazprom PJSC, so that the gas operator would become a full-fledged vertically integrated national gas company.

Recently, the role of gas on a global scale has increased significantly. “Blue” fuel is designed to ensure the transition to a low-carbon economy as renewable energy sources develop.

According to the plan of the Government of the Republic of Kazakhstan, gas will play an important role in improving the environment, replacing coal and diesel fuel in electricity and heat generation. The share of energy due to gas generation will double – from 20% to 40%. The share of gas as an environmentally “clean” fuel for transport will significantly increase. Deep processing of gas will be of great importance for economic diversification.

The main tasks that the company needs to solve in the near future are accelerated growth of the gas resource base, stimulation of commercial gas production, geological exploration and gas production at both existing and new fields. Also, the main task is to modernize the country’s gas transportation and gas distribution infrastructure.  Recall that KTG has been a part of KMG since 2002. During this time, KTG’s assets have grown more than 20 times from 125 billion tenge to 2.5 trillion tenge, capital – from 61 billion tenge to 1.6 trillion tenge, revenue – from 85 billion tenge to 900 billion tenge per year.

Since the establishment of KTG, more than 10 thousand km of main gas pipelines have been built and put into operation in Kazakhstan. To date, KTG manages more than 20 thousand km of main gas pipelines and more than 56 thousand km of gas distribution networks.

Press Service of KazTransGas JSC

Tel: +7(7172) 55 23 16