KAZAKHSTAN: Law No. 532-IV of 2012 on Gas and Gas Supply (2019 Ed.)

Meta Data
Title in national language: 
Закон Республики Казахстан от 13.01.2012 № 532-IV "О газе и газоснабжении" (с изм. и доп. по состоянию на 14.04.2019 г.)
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2012
Effective Start Year: 
2019
Scope: 
National
Document Type: 
Law
Economic Sector: 
Energy
Energy Types: 
Gas
Issued by: 
Office of the President of the Republic of Kazakhstan
Source: 
Policy Database "Adilet" (RU)
File: 
Law No. 532-IV of 2012 on Gas and Gas Supply (2019 Ed.) (RU)
Overall Summary: 
The present Law establishes a full regulatory framework for gas and gas supply in the Republic of Kazakhstan. Multifaceted measures envisaged by the policy aim to ensure efficient, reliable and safe operation of the unified gas supply system.
Environment
Land use change for energy production purposes: 
Art. 13 addresses the need to develop comprehensive land policies for the construction and operation of gas supply systems. Under this article, land administration measures are designed in conformity with the established environmental requirements and standards. Construction permitting, modernization or refurbishment of gas supply facilities is carried out in accordance with the Land Code of the Republic of Kazakhstan.
Gas flaring: 
Art. 16 covers the regulation of associated gas flaring. As provided by the article, the state shall own the associated gas. An engaged investor shall acquire the ownership rights under contractual partnership agreement on gas and gas supply. Art. 16-4 makes specifications for the partnership agreement contract. Under the contract, the associated gas shall be processed into sales gas, liquefied petroleum or liquefied natural gas. Priority is given to the supplies of the above-mentioned fuel types – provisions comply with the General Scheme for Gasification of the Republic of Kazakhstan.
Pricing
Energy pricing: 
Art. 20 focuses on pricing mechanisms for the sales gas and liquefied petroleum gas on domestic wholesale market. Tariff setting is subject to state regulatory oversight. Marginal tariffs for domestic wholesale markets are established yearly based on the current economic conditions and market environment.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Art. 8 provides for the establishment of a unified commercial gas supply system. The system operates to ensure uninterrupted supply of sales gas, stable operation of gas supply facilities, provides dispatch control over gas transportation and storage. The system includes main and connecting gas pipelines, storage facilities for sales gas, gas distribution systems, gas filling compressor stations, and other technical facilities for production, transportation and storage. --- Art. 10. An emphasis is placed on the development of liquefied petroleum gas supply systems. The system comprises gas-filling stations, gas tank installations, gas-consuming plants and other facilities for transportation, storage, and consumption of liquefied petroleum gas. --- Art. 11 focuses on the General Scheme for Gasification of the Republic of Kazakhstan. Estimates for domestic demand for commercial and liquefied petroleum gas are based on the forecaststed balance of production and consumption of sales and liquefied petroleum gas. --- Art. 12 provides for the design, construction, modernization and refurbishment of gas supply facilities.
Governance
Energy management principles: 
Art. 4 focuses on strategic policy issues and highlights major concerns with respect to gas and gas supply. The policy calls for mainstreaming the core dimensions of sustainable development: improved economic and social welfare and enhanced energy and environmental security. The objectives of the policy are focused on the following areas: security and reliability of gas supply, sustainable use of gas resources, domestic demand for commercial and liquefied petroleum gas, pricing mechanisms. Regulatory efforts thereby encompass the following: 1) establishment of a unified system of gas supply; 2) enabling conditions for uninterrupted gas supply; 3) increasing the share of commercial and liquefied petroleum gas in Kazakhstan’s energy mix.
Technology
Natural gas transportation technology: 
Art. 8 provides for the establishment of a unified commercial gas supply system. The system operates to ensure uninterrupted supply of sales gas, stable operation of gas supply facilities, provides dispatch control over gas transportation and storage. The system includes main and connecting gas pipelines, storage facilities for sales gas, gas distribution systems, gas filling compressor stations, and other technical facilities for production, transportation and storage---Art. 26 highlights requirements for the transportation of liquefied petroleum and liquefied natural gas. In accordance with the legislation of the Republic of Kazakhstan on the transportation of dangerous goods, the transportation by railway, highway, marine and inland water transport shall be carried out via specially equipped facilities.