MOSCOW (S&P Global) – Kazakhstan’s national gas shipping company KazTransGaz and PetroChina International Company on Monday inked a five-year contract to double Kazakh natural gas exports to China to 10 bln m³/y from 2019.

The deal comes as Kazakhstan increases gas production, with associated petroleum gas accounting for the bulk of the output, and continues to expand its pipeline infrastructure to ensure greater deliveries to international markets.

Exports of natural gas have become increasingly attractive for the country recently, energy minister Kanat Bozumbayev said earlier this month. “Gas exports are very beneficial for Kazakhstan. While previously we were to export gas via Russia, now we have new directions, we deliver a significant share [of total exports] to China directly, via direct contracts”, he said. Bozumbayev estimated Kazakhstan’s total exports of natural gas in 2018 at 15 bln m³.

In the first nine months of the year, gas production in Kazakhstan rose by 5.9% year on year to 41.45 bln m³, according to the State Statistics Service of Kazakhstan data published Monday. Of the total, associated petroleum gas amounted to 24.4 bln m³, up 10.3% year on year. The country’s gas production rose by 14% year on year to 52.9 bln m³ in 2017 and was forecast to increase by 1.1% to 53.5 bln m³ in 2018. With the three projects’ expansion, gas output is set to grow further after 2020.