Russian state controlled gas giant Gazprom has added another natural gas pipeline to the portfolio of export routes it plans to build in the next 10 to 15 years as it seeks to boost sales to markets in Central Asia and China.

Gazprom lost 75% of its gas exports to Europe in 2022 when it reduced supplies in retaliation to international sanctions imposed against Russia following the invasion of Ukraine. Exports were trimmed further from 1 January this year after Ukraine halted the transit of Russian gas to Slovakia, Austria and the Czech Republic.

In a statement on Wednesday, Gazprom said its executive board chairman Alexei Miller and First Deputy Prime Minister of Kazakhstan Roman Sklyar met in St. Petersburg and signed a memorandum to build a new gas trunkline from Russia to Kazakhstan.

The announcement comes after Gazprom last month announced a breakthrough memorandum agreement with China National Petroleum Corporation (CNPC) to move forward with its long-discussed plan to build a pipeline from West Siberia to Mongolia and China to transport 50 billion cubic metres of gas per year, known as Sila Sibiri 2.

Russia and Kazakhstan have for several years discussed building a pipeline that would aim to deliver up to 10 Bcm of Russian gas per annum to the north and northeast of Kazakhstan.

Kazakhstan's own key gas fields are located in the west of the country. The country would have to build additional trunklines across the country in order to increase the supply of domestically-produced gas to the north and northeast, regions of Kazakhstan which are geographically closer to Russia's existing gas trunkline infrastructure.

As with the talks on Sila Sibiri 2, however, the stumbling block in negotiations for a new pipeline between Russia and Kazakhstan has been the price of supplied gas.

Authorities in Astana hope to purchase gas from Gazprom at a discount, procuring the Russian gas at the same price as Kazakhstan's regulated price for domestically-produced gas — currently running at an average of $75 per 1000 cubic metres.

Astana has hoped to improve the commercial attractiveness of the gas pipeline to Kazakhstan by offering to extend it to China, offering Gazprom access to a more lucrative market.

However, a new trunkline to supply gas from Russia to China through Kazakhstan may prove too expensive, with Sila Sibiri 2 or liquefied natural gas shipments providing better alternatives, China's Ambassador to Russia, Zhang Hanhui, said in April.

The Kazakh government has as yet not commented on Wednesday's St.Petersburg meeting in its official press statements.

Upstream has contacted Kazakhstan’s Ministry of Energy and Gazprom for comment.