Kazakhstan’s Senate (upper house) of the parliament has approved the draft law on ratification of the agreement between Kazakhstan and Russia for gas supply to Kazakhstan’s Baikonur city, Trend reports with reference to the press office of the Senate.
In Jan. 2020, the agreement was ratified by Kazakhstan’s Mazhilis (lower house).
According to the law and the agreement, Baikonur city will now be supplied with natural gas, which is 16 times cheaper than the liquefied gas used currently.
KazTransGaz Aymak JSC as well as its Kyzylorda production branch will be supplying gas to the city. Retail gas supplies will be implemented without registration, which will allow to avoid double taxation.
Following the Mazhilis meeting, Kazakhstan’s Minister of Energy Nurlan Nogayev noted that the retail price of the natural gas for Baikonur residents will be 18.6 tenge (4.89 cents) per cubic meter for physical entities and 18.9 tenge (4.97 cents) per cubic meter for legal entities without VAT.
Previously, Baikonur city was supplied with Russia’s liquefied gas by a Russian venture.
Kazakhstan’s Baikonur city is the administrative and living center of major Baikonur Cosmodrome. The city and the Cosmodrome together create a Baikonur complex, which Russia is renting from Kazakhstan till 2050.