The Executive Office of the President of the Republic of Kazakhstan has agreed on the date of the QazaqGaz IPO for 2023. Work was begun to prepare for the IPO: a Steering Committee has been established, draft roadmap/schedule plan has been developed, independent consultants were pre-approved and potential investors were marketed.

Currently, the Fund is taking measures to coordinate and approve the Roadmap for withdrawing the asset to the competitive environment.

QazaqGaz implements the principles of sustainable development and ESG (environmental, social, governance) factors into its business processes. The company conducted an independent diagnostics of the ESG system with the participation of independent international consultants. As a result, a Roadmap of measures has been developed that will improve the current ESG system.

To comply with the ESG principles, the QazaqGaz intends to apply international best practices in doing business, protecting the environment, ensuring safe working conditions, and developing human capital. Work is underway to obtain the ESG rating in accordance with the Instruction of the Head of State.

Use of energy resources and energy saving

The company pursues a policy of energy conservation and energy efficiency improvement. The directions of activities in the field of energy efficiency improvement in the transportation, distribution, extraction and underground storage of gas are defined in the Activities of subsidiaries and affiliates (hereinafter - Subsidiaries) on energy saving and energy efficiency improvement.

The main energy saving measures are:

• Automatic compensation of reactive power at the Amangeldy Gas field and at the Beineu CS, Aktau GPA of Intergas Central Asia JSC;
• Optimization of operating modes of electric gas pumping units, power supply schemes according to the operating mode of compressor stations, including disconnection of power transformers of backup power supply of turbocharger shops;
• Optimization of loading of compressor stations with gas turbine drive of Intergas Central Asia JSC;
• Overhaul of the gas pumping unit (GPU) No.5 of TCS-4 of Makat CS of Makat LPD of Atyrau GPA of Intergas Central Asia JSC;
• Overhaul of the gas pumping unit (GPU) No.5 of TCS-4 of Taiman CS of Redoubt LPD of Atyrau GPA of Intergas Central Asia JSC;
• Introduction of the cleaning system of the axial compressor of the GT-750-6-type GPA No.3,4 of TCS-1 on Oporny CS (natural gas) of Opornensky LPD of Aktau GPA of Intergas Central Asia JSC;
• Optimization of operating modes of electric gas pumping units of Taraz GPA of Intergas Central Asia JSC;
• Optimization of power supply systems with disconnection of power transformers (backup), electric motors of AVO-gas turbocharger workshops of Subsidiaries;
• Regulation of operating modes of boilers at night, weekends and holidays in the administrative and industrial premises of Subsidiaries;
• Replacement of obsolete cathode electrochemical protection stations in the amount of 18 units on the linear part of the main gas pipelines of Intergas Central Asia JSC.

Improvement of energy efficiency indicators is due to the use of optimal modes of gas transportation and implementation of energy saving measures.

The volume of consumption of fuel and energy resources for the QazaqGaz group of companies for 2020 amounted to: 1 325 992 tons of conventional fuel (990 749.56 thousand m3, 80.74 million kWh, fuel 6194.2 tnf) compared to the same period of 2019 - 1 815 052 tons of conventional fuel (tnf) (1 528 877.45 thousand m3, 92.46 million kWh, fuel - 6 660.33 tons) and decreased by 36.9%.

The Company has the largest gas transmission network in the Central Asian, a unified system of internal gas supply. In aggregate, the group of QazaqGaz companies operates gas pipelines with a total length of about 76 thousand km. Including 20 thousand km of main gas pipelines with an annual capacity of up to 267.8 billion m3 and gas distribution networks with a length of about 56 thousand km.

The Company is developing a long-term strategy taking into account the best practices of ESG, and is also working to improve gas pricing, increase the resource base of commercial gas, modernize and expand the gas transportation infrastructure.

Directions of the company’s activity:

• Gas production
• Gas transportation
• Natural gas sales

QazaqGaz operates the largest network of main gas pipelines in the Republic of Kazakhstan with a total length of more than 20.6 thousand km (including 2 793 km of gas pipelines) with an annual capacity of 255 billion m3 and gas distribution networks with a length of more than 59 thousand km.

QazaqGaz operates 3 largest underground gas storage facilities (Bozoi, Akyrtobe, Poltoratskoye) in the Republic of Kazakhstan with a total active storage volume of 4.6 billion m3. Gas transportation is provided by 42 compressor stations and 238 gas pumping units.

QazaqGaz is the main supplier of gas to the domestic market of the Republic of Kazakhstan, providing commercial gas to more than half of the country’s population. It should be noted that in recent years the company has carried out extensive work on the renovation and construction of gas transmission infrastructure and distribution networks in different regions of the country. Over the past eight years alone, about four million Kazakhstanis have been able to use gas, the level of gasification of the population has increased from 30% in 2013 to 57.67% in 2021 and amounted to more than 11 million citizens. The number of gasified domestic enterprises has doubled - from 23 725 to 54 615.

The key advantages of the company are as follows:

• The status of a national operator in the field of gas and gas supply;
• Natural monopoly on retail sale of gas and transportation in the Republic of Kazakhstan;
• ТMany years of experience in managing centralized infrastructure for the transportation of commercial gas through main gas pipelines and gas distribution networks, in ensuring international transit and sales of gas on domestic and foreign markets, in the development, financing, construction and operation of pipelines and gas storage facilities;
• Long-term partnership with the largest international gas suppliers from Russia and China;
• International image and credit ratings of the Company (Moody’s Baa2 (stable), Fitch Ratings BBB- (stable), S&P Global Ratings BB (positive);
• Reorganization into a full-fledged Portfolio Company of Samruk Kazyna Sovereign Wealth Fund and strengthening the support of the Government of the Republic of Kazakhstan;
• Available experience from extraction and processing to transportation and sale of gas;
• Availability of a long-term contract with the largest Kashagan field.

In response to global, national, corporate challenges and opportunities, key priorities for the Company have been identified in the following main areas:

• increasing the resource base of commercial gas (extraction, processing);
• development of the domestic market;
• development of gas transit and export;
• development of gas chemistry;
• investment and operational efficiency.