Kazakhstan to change method for gas price calculation leading to 100-150% rise in price

ASTANA. May 15 (Interfax) - Kazakhstan's Energy Ministry is introducing a new method for gas price calculation, which will lead to an increase of 100-150% in gas prices, Deputy Energy Minister Askhat Khasenov said at a gas producers forum.

"Today, the average gas price is about $40-50 per thousand cubic meters. Upon introduction of the new methodology the price is expected to increase to make about $110-120, so the gas will be sold at prices 100-150% higher, which will help bring additional investment in gas exploration and production," Khasenov is quoted as saying in a press release published by national gas company QazaqGaz on Monday.

QazaqGaz signed off-take contracts for the purchase of additional volumes of gas with 30 mineral resource companies, including CNPC-Aktobemunaygas, Kazgermunai, Kazakhoil Aktobe and Zhaiykmunai. Under the contracts these companies will increase gas production in the gas fields in Kazakhstan at their own expense, according to the press release.