Article 14. The priority right of the State in the field of gas and gas supply The Law on Gas and Gas Supply

Home / Laws / Article 14. The priority right of the State in the field of gas and gas supply The Law on Gas and Gas Supply

1. In order to ensure energy security and meet domestic needs for marketable gas, the Republic of Kazakhstan has priority over other persons to acquire alienated facilities of the unified marketable gas supply system, shares in common ownership of facilities of the unified marketable gas supply system and blocks of shares (participation interests) of legal entities-owners of facilities of the unified marketable gas supply system (next is the priority right of the State).

2. The implementation of the priority right of the state in respect of objects classified as strategic objects in accordance with the civil legislation of the Republic of Kazakhstan is carried out in accordance with the Law of the Republic of Kazakhstan "On State Property".

3. The implementation of the priority right of the State in respect of facilities not classified as strategic facilities in accordance with the civil legislation of the Republic of Kazakhstan is carried out through the national operator in accordance with the procedure provided for in paragraphs 4-6 of this article.

4. A person who intends to alienate an object of the unified commercial gas supply system, a share in the right of common ownership of an object of the unified commercial gas supply system and (or) a block of shares (participation interest) of a legal entity that owns an object of the unified commercial gas supply system, shall send a commercial offer to the national operator indicating the price and other conditions of such alienation.

5. The national operator, within one month from the date of receipt of the commercial proposal, shall make a decision on the implementation of the priority right of the State or on its waiver and notify the person who submitted the commercial proposal in writing of the decision.

6. If the national operator has waived the priority right of the State in writing or has not sent a written notification of the intention to implement it within one month, the person specified in paragraph 4 of this article has the right to alienate the object of the unified commercial gas supply system, shares in the right of common ownership of the object of the unified commercial gas supply system and (or) a block of shares (participation interests) of a legal entity that owns an object of a unified commercial gas supply system to other persons. In this case, the terms of alienation must be no less beneficial to the person referred to in paragraph 4 of this article than the terms offered by him to the national operator.

7. The provisions of this article do not apply to the following cases::

1) alienation of gas-filling compressor stations and gas-consuming systems of industrial consumers and industrial consumers-investors;

2) alienation of shares traded on the organized securities market;

3) transfer of facilities of the unified commercial gas supply system, shares in the right of common ownership of facilities of the unified commercial gas supply system and (or) blocks of shares (participation interests) of legal entities-owners of facilities of the unified commercial gas supply system:

a subsidiary in which at least ninety-nine percent of the ownership interest (block of shares) is directly or indirectly owned by the owner of the unified gas supply system facility.;

between legal entities, in each of which at least ninety-nine percent of the shares (blocks of shares) are owned directly or indirectly by the same person.;

4) transfer of shares (stakes) in a legal entity that owns an object of the unified gas supply system, if as a result of such transfer the person acquires the right to directly or indirectly (through third parties) dispose of less than 0.1 percent of the participation (block of shares) in the authorized capital of the legal entity that owns the object of the unified gas supply system..

The Law of the Republic of Kazakhstan dated January 9, 2012 No. 532-IV.

This Law defines the legal, economic and organizational bases for regulating public relations in the field of gas and gas supply in the Republic of Kazakhstan and is aimed at creating conditions for meeting the domestic gas needs of the Republic of Kazakhstan, as well as for efficient, reliable and safe operation of gas supply facilities.

President

Republic of Kazakhstan

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