Article 20. Pricing of commercial and liquefied petroleum gas The Law on Gas and Gas Supply

Home / Laws / Article 20. Pricing of commercial and liquefied petroleum gas The Law on Gas and Gas Supply

1. In order to ensure economic security, in cases and in accordance with the procedure established by the rules for setting the maximum prices for the wholesale sale of commercial gas on the domestic market and the maximum prices for the wholesale and retail sale of liquefied petroleum gas within the framework of the supply plan, the Republic of Kazakhstan may establish state regulation of the maximum prices for the wholesale sale of commercial gas on the domestic market, as well as the maximum prices for the wholesale and retail sale of liquefied petroleum gas. retail sale of liquefied petroleum gas as part of a supply plan outside commodity exchanges.

2. The maximum wholesale prices of marketable gas on the domestic market are set every five years, broken down by year, and, if necessary, adjusted annually on July 1 in accordance with the procedure determined by the authorized body, separately for each region, city of republican significance, capital, industrial consumers-investors who purchase marketable gas for the production of compressed and (or) liquefied natural gas. for further sale to consumers, taking into account the economic and social conditions of gas supply in the regions of the Republic of Kazakhstan.

Adjustments are made no more than once a year on the basis of a request from the national operator to the authorized body in connection with changes in the purchase prices of commercial gas, the structure and (or) sources of commercial gas, and (or) tariffs subject to state regulation for the transportation of commercial gas through main gas pipelines, storage of commercial gas in underground gas storage facilities.

2-1. Marginal prices for the wholesale sale of marketable gas on the domestic market for industrial consumers-investors who purchase marketable gas for use as fuel and (or) raw materials in industrial production in order to implement investment projects for the production of petrochemical products, are set from the date of their commissioning every five years, broken down by years, and adjusted annually if necessary. On July 1, in accordance with the procedure determined by the authorized body, separately for each region, city of republican significance, capital.

2-2. The maximum wholesale prices of marketable gas on the domestic market for consumers included in the list of power plants are set separately for each consumer included in the list of power plants every five years, broken down by year, and adjusted annually on July 1, if necessary, in accordance with the procedure determined by the authorized body.

2-3. Marginal prices for wholesale sales of marketable gas on the domestic market intended for subsequent sale to large commercial consumers, digital mining companies, or electric energy producers for digital mining are set annually on July 1, separately for each region, city of republican significance, and capital in accordance with paragraph 3-3 of this article.

2-4. The marginal prices set for large commercial consumers do not apply to the sale of commercial gas needed for production:

socially significant food products;

thermal and (or) electric energy for the population and legal entities, except for those engaged in digital mining.

3. The authorized body, in coordination with the authorized body in charge of the relevant areas of natural monopolies, approves the maximum wholesale prices of commercial gas on the domestic market for the coming year no later than May 15.

3-1. The authorized body, in coordination with the authorized body in charge of the relevant areas of natural monopolies, approves the maximum prices for the wholesale sale of marketable gas on the domestic market for an industrial consumer, an investor who purchases marketable gas for use as fuel and (or) raw materials in industrial production in order to implement an investment project for the production of petrochemical products., no later than thirty working days before the date of its commissioning, followed by approval for a five-year period from July 1 and, if necessary, adjusts annually on July 1 in accordance with the procedure determined by the authorized body.

3-2. The authorized body, in coordination with the authorized body in charge of the relevant areas of natural monopolies, approves the maximum wholesale prices of commercial gas on the domestic market for consumers included in the list of power plants no later than thirty working days before the date of commissioning of new electric capacities.

3-3. The authorized body, in coordination with the authorized body in charge of the relevant areas of natural monopolies, annually approves, no later than May 15, the maximum prices for the wholesale sale of marketable gas on the domestic market for the coming year, intended for subsequent sale.:

large commercial consumers;

persons engaged in digital mining, or persons engaged in the production of electrical energy for digital mining.

4. Excluded by the Law of the Republic of Kazakhstan dated 09/29/2014 No. 239-V (effective ten calendar days after the date of its first official publication). 5. Excluded by the Law of the Republic of Kazakhstan dated 06/29/2023 No. 13-VIII (effective ten calendar days after the date of its first official publication).

5-1. The level of marginal prices for wholesale and retail sales of liquefied petroleum gas can be determined depending on the region of supply and the category of subjects of the liquefied petroleum gas supply systems that purchase it.

6. Excluded by the Law of the Republic of Kazakhstan dated 12/30/2021 No. 96-VII (effective sixty calendar days after the date of its first official publication). 7. Excluded by the Law of the Republic of Kazakhstan dated 09/29/2014 No. 239-V (effective ten calendar days after the date of its first official publication).

8. Persons who sell commercial gas on the domestic market or liquefied petroleum gas within the framework of the supply plan are required not to exceed the established marginal prices.

9. The marginal prices for the wholesale sale of marketable gas on the domestic market, established by this article, do not apply to relations for the sale of marketable gas.:

1) to the national operator within the framework of the pre-emptive right of the State;

2) to the national operator by the owners of commercial gas produced outside the territory of the Republic of Kazakhstan from crude gas produced in the Republic of Kazakhstan on the basis of international treaties of the Republic of Kazakhstan;

3) the liquefied natural gas obtained in the process of regasification;

4) extracted (produced) by a subsurface user within the framework of a production sharing agreement (contract) that has a stable tax regime in accordance with Article 722 of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code), the provisions of which provide for the preferential right of the state to purchase alienated crude and (or) marketable gas.

10. Excluded by the Law of the Republic of Kazakhstan dated 12/30/2021 No. 96-VII (effective sixty calendar days after the date of its first official publication).

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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