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The Natural Gas Industry in Kazakhstan

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Overview Kazakhstan has the world's fifteen-largest proved reserves of natural gas with an estimated 2.407 trillion cubic meters, ranking it between China and Malaysia in this respect (CIA World Factbook, 2012). Most of these fields are in the country's western Caspian region. That basin is home to some of the world's best oil and gas reserves. Other Caspian nations such as Russia, Iran and Turkmenistan are all among top ten in the world for proved reserves of natural gas (Ibid). An estimated 80% of Kazakhstan's production is locked in four fields: Karachaganak, Tengiz, Imashevskoye and Kashagan. This paper will outline the natural gas industry is Kazakhstan, providing insight into its history and the state of the industry today. History of Natural Gas in Kazakhstan The Caspian Sea region has long been one of the richest in the world for fossil fuels. Azerbaijan was an early power in oil, for example. The Soviet Union's vigorous defense of the region at Stalingrad not only kept the oil out of the hands of the Axis powers, but it secured the region's hydrocarbon resources for Soviet development. During the Soviet era, fields in what are today the independent nations of Russia, Turkmenistan, Kazakhstan and Azerbaijan were developed. After independence, Kazakhstan has retained and upgraded the Soviet-era infrastructure in order to develop its oil and natural gas industries. Figures from the Energy Information Administration show that Kazakhstan's production of natural

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