We have gas in Astana, and you?!?

One year has passed since the first liquefied natural gas regasification plant “Turan” was started up. Within the contract signed in December 2016 between “Gazprom export” and “GlobalGasGroup” companies, LNG is delivered by motor transport to Astana for the purpose of fuel supply to the capital. We had a talk with the Director of “GlobalGasRegazification”, Panayot Saulidi, on the progress and interim results of “Astana LNG 2020” project.

A year has passed since your first regasification station start-up. Let's sum up the intermediate results.

Indeed, on 8 February was a year since Turan regasification station start-up. During this time, we have learned a lot, gained real experience in operation of new LNG technology for Kazakhstan, built the entire business process in such a way that we are able to supply gas to Astana facilities without interruptions and accidents.

Of course, we anticipated the risks related to climatic features of the northern region of Kazakhstan. During 2017-2018 heating season, we faced with critically low temperatures and snowstorms, but we successfully settle emerging concerns.

Were there any breakdowns or supply disruptions within a year?

Throughout the entire period of cooperation, the Russian partners have shown themselves to be the best. Taking into account the fact that this technology is unique for Kazakhstan and new for us, we have gained valuable joint experience in its use, work with cryogenic liquids, and I am generally satisfied with the results.

“Turan” station operates today at its 20% capacity. At the end of the first heating season, we can confidently say that we are ready to completely gasify Astana, significantly increasing the project scale and building 5 more stations in the city territory.

We will apply the gained experience to other regions of Kazakhstan included, from the very beginning, in the list of target gasification territories.

Can you specify some project parameters: total delivery volume, number of equipment and staff, etc.

Today, the project employs more than 70 professionals with significant experience in gasification and gas supply. They are qualified in the field of construction, production, transportation, logistics, regasification, gas motor fuel and other related fields of knowledge.

16 trailer trains with cryogenic liquid tanks daily deliver liquefied natural gas to “Turan” complex for its further gasification. By February 2, 2018, we have delivered 5 million cubic meters of commercial gas to our customers. At the moment, these are the Nazarbayev University, the Defense University and the National Space Centre “GaryshSapary”. In the near future, a group of state sports institutions located under the Turan project are expected to be connected to the Astana single gas pipeline. Another new regasification complex “Burabay”, located in Borovoye nature reserve territory, is ready for commissioning.

During this time you were going to gasify more than 5 large state facilities in Astana and put into operation the second station. What of this was implemented and when will it be done?

Frankly speaking, volume of natural gas consumption during this time could be much higher. As I said earlier, today the station is loaded only by 20% of its potential capacity.

This is due to the reluctance to help and, in some cases, complete inaction on the part of local executive bodies. Despite the fact that natural gas is an absolutely competitive fuel (compared to fuel oil and diesel), the enterprises are very reluctant to negotiate on conversion of boilers to this eco-friendly and cheaper fuel. Meanwhile, the group of “Global Gas Group” companies is actively engaged in attracting consumers, providing free works on the design, construction of gas pipelines and even acquisition of new equipment for boilers, as has been repeatedly mentioned at industrial and city meetings. Even taking into account all the above, the Akimat (City Governor’s office) took measures only “on paper”.

What is the situation with the most “sore spot” for Astana residents? You planned to prepare the private sector for gasification.

Regarding gasification of private sector, the public-private partnership project is currently under consideration by the relevant state bodies. If the PPP agreement is agreed and signed, we are ready to start gasification of the capital private sector this year.

Like any flagship project, you have to anticipate and neutralize a lot of risks. What difficulties do you face during the project development?

Rumors about construction of the main gas pipeline are one of the main arguments used by the competent authorities to conceal their inaction in energy matters. I would like to stress that our project significantly facilitates construction of main gas pipeline, preparing the city and region infrastructure for gas supply through the main pipeline.

Despite the obvious advantages of “Astana 2020” project, and support expressed by the Head of State, sadly, we are lacking assistance and support at the local level. Many initiatives are impeded by the officials in whose offices most of letters lie idle. Unfortunately, I must state that such inaction even borders somewhere with sabotage of the economy real sector development.

LNG is also a motor fuel. How does “Global Gas Group” work in this trend?

Our project pays considerable attention to development of the gas motor fuel market. At the World Expo Exhibition, we worked out a small project together with colleagues from Uzbekistan: they delivered four passenger buses operating on compressed gas (CNG). We in turn provided pilot filling with LCNG: the gas is stored in LNG state and refueling is done in CNG state. All three months these buses refueled this way transported the exhibition participants and guests.

Another project was worked out together with partners from Russia in Akmola region. Two buses were operated a month in Kokshetau town in test-drive mode, where, after negotiation and purchase of transport means, we are ready to set the refueling complex.

I can say that Akimats (City Governor’s offices) of many cities are showing interest in conversion of municipal equipment and passenger transport to gas. Such a dialogue is taking place. Positive outcome of it will make it possible to achieve significant results both in terms of large money savings and improving the environmental situation in the state territory.

We have smoothly approached your plans. It is likely that they have undergone some changes during this year.

Strategically, they have not changed. We still aim to convert the enterprises from diesel fuel to natural gas, gasify the entire private sector of Astana and northern regions of our republic, as well as actively develop the gas-motor fuel sector. Of course, we still intend to improve the environmental situation in the capital and in the region as a whole: this issue is particularly relevant at the peak of the heating season, when it is extremely difficult to breathe in calm winter weather.

I would like to emphasize that today we have a unique opportunity to provide gas to the regions in need. First of all, there is an urgent need for it; no one will deny it, right? Secondly, there are state instruments distinguishing the responsibility areas and ownership rights in case of public-private partnership. Thirdly, there is a company that already has experience of successful implementation of the first stage of project significant for the state fuel and energy complex.

Today, we can predict that the budget economic benefit for the capital will be at least 5 billion tenge annually, if we extrapolate the real budget savings received by the Nazarbayev University over the past year, for the prospect of “Turan” LNG regasification complex operation by 100% capacity. I mean the prospect that “Turan” station will supply gas to the number of consumers sufficient for full production capacity operation of the complex.