Kazakhstan: Foreign Consortium to Build USD 2B Gas Processing Plant at Tengiz Field

A new gas processing plant will be built at Kazakhstan’s largest oil and gas field, Tengiz, Orda.kz reports.

According to industry outlet Upstream Online, the EPC contract for the gas separation complex (GSK) has been awarded to a consortium of foreign investors — Italy’s Tecnimont and the Middle East’s Consolidated Contractors International Company (CCIC). The plant will extract ethane from gas for polyethylene production.

KMG PetroChem, a subsidiary of the state oil and gas corporation KazMunayGas, says the GSK will process about 9.1 billion cubic meters of associated gas annually, producing around 1.6 million tonnes of ethane and 360,000 tonnes of propane.

Industry sources told Upstream Online that the contract is worth more than $2 billion. Construction is expected to begin in Q3 2025 and be completed by 2029.

KMG PetroChem maintains that doubts over the project’s profitability are unfounded — projections show that sales of ethane and propane will enable the plant to break even within 17 years. The facility will supply feedstock to a polyethylene production plant in Atyrau, ensuring an annual output of 400,000 tonnes.

Meanwhile, Tengiz expansion has already boosted output for key investor Chevron, allowing the U.S. major to outpace European competitors.

Original Author: Nikita Drobny