Russian energy giant Gazprom and the government of Kazakhstan have signed a memorandum of intent to construct a major new natural gas pipeline connecting the two nations to strengthen bilateral energy cooperation and address Kazakhstan’s increasing domestic demand.

The agreement was finalized last Wednesday at the 14th St. Petersburg International Gas Forum (SPIGF) during a meeting between Gazprom Chairman Alexey Miller and Kazakh First Deputy Prime Minister Roman Sklyar.

Gazprom announced that the memorandum establishes the framework for building a main gas pipeline from Russia to Kazakhstan, with the proposed infrastructure designed to have an initial transport capacity of 10 billion cubic meters per year.  

Already integrated into Russia’s federal transport infrastructure planning, following a decree signed by Prime Minister Mikhail Mishustin on Feb. 18, the pipeline project is intended to pass through several municipalities in Russia’s Tyumen region, which borders Kazakhstan’s North Kazakhstan region.

In addition to the pipeline deal, the officials signed a document outlining the long-term processing of Kazakh gas at the modernized Orenburg Gas Processing Plant in Russia. This facility will handle gas from Kazakhstan's Karachaganak field, further deepening the nations' energy ties.

The discussions underscored a commitment to expanding collaboration, particularly as Kazakhstan seeks to improve gas access in its northern and northeastern territories, which remain less connected to its national grid. 

Kazakhstan has been exploring various supply options, including new routes from Russia to key cities like Semey and Ust-Kamenogorsk. The hydrocarbon-rich country has also been holding talks with Turkey to explore boosting oil exports via the BTC pipeline. 

Looking to the future, both sides are also studying the feasibility of developing a much larger gas infrastructure capable of transporting up to 45 billion cubic meters per year. 

Under this long-term vision, 10 billion cubic meters would be reserved for domestic gasification within Kazakhstan, while the remaining 35 billion cubic meters would be exported to China.