Canada's Tethys delays Kazakh gas output boost

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ALMATY | Thu Oct 9, 2008 7:34am EDT

ALMATY Oct 9 (Reuters) - Tethys (TPL.TO), a Canadian firm producing natural gas in Kazakhstan, has moved its target of producing 2 million cubic metres per day to 2009 from this year, Chief Executive David Robson said on Thursday.

"By December of this year we will double production to 1.1 million cubic metres of gas per day," Robson told reporters.

"Some time next year we hope to get this up to 2 million cubic metres per day."

Tethys, which launched production at its Kyzykoi field late last year, has said earlier it would reach the 2 million cubic metre mark this year.

Tethys also holds licences to develop two other Kazakh gas fields, Akkulka and Kul-Bas, and Robson said an assessment of their reserves could come early next year.

"By the first quarter of 2009 we should expect results from our studies," he said.

"If we can prove these reserves, we'll go bigger and we could go to China."

Tethys, which has proven reserves of 3 billion cubic metres (bcm), currently sells its gas on the domestic market.

"We are looking for new gas and we have potential reserves of 80 billion cubic metres," Robson said.

He said non-contracted gas would be sold to Russia until a gas pipeline from Central Asia to China comes on stream. (Reporting by Amie Ferris-Rotman; Writing by Olzhas Auyezov; Editing by Hans Peters)

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