Kazakhstan May Take Over Karachaganak Gas Plant Project Amid Investor Delays - Bloomberg
Photo: Press Service KMG
Kazakh authorities are considering taking control of the Karachaganak gas processing plant project due to delays and cost overruns by foreign investors, Orda.kz reports.
According to Bloomberg, citing sources, the Karachaganak Petroleum Operating consortium — led by Eni and Shell — has postponed the plant’s completion from 2028 to 2030 and raised the cost estimate to nearly $6 billion.
Investors are also reportedly asking Kazakhstan to contribute $1 billion to help cover costs and ensure project profitability.
Kazakhstan is dissatisfied with this request and may transfer the project to the state oil company KazMunayGas. On May 19, KMG CEO Askhat Khasenov publicly criticized the construction pace. Authorities are also unhappy with the revised cost, which has nearly doubled from the initial estimate of $3.5 billion.
Neither the Ministry of Energy nor Karachaganak Petroleum Operating has issued an official comment.
Tensions between Kazakhstan and the consortium over costs have been public since September last year. Foreign companies want either a higher price or reduced capacity to ensure returns, but the Kazakh side disagrees, especially amid a growing need for domestic gas processing.
The Karachaganak consortium has also been fined for environmental violations.
Original Author: Nikita Drobny
Latest news
- Kazakhstan Tightens Rules on Bank Loans to Related Parties
- Kyrgyz MP Reports Attacks on Kyrgyz Cars in Kazakhstan
- AI to Be Used to Monitor Methane Leaks in Kazakhstan
- Nuclear Power Could Cost Kazakhstanis Up to $0.19 per kWh, Expert Says
- Tokayev Criticizes Selective Use of the UN Charter
- Kazakhstan Plans to Print National ID Numbers on Pharmacy and Clinic Receipts
- Tokayev Says Snow Leopard Numbers in Kazakhstan Have Recovered
- Illusion of Stability: Expert Says Housing in Kazakhstan Could Rise in Price by Fall
- Maslikhat Deputies in Kazakhstan May Receive Expanded Powers
- Minister Confirms Threat to Kazakh Oil Transit Through Russia
- Astana Akimat Gives More Precise Timeline for LRT Launch
- Flood Washes Out Crossing in West Kazakhstan Region, Forcing Villagers to Take Longer Route
- Eco-Activist Shows Steppe Near Aktau Turned Into a Dump
- Direct Highway Between Kazakhstan and Mongolia Under Discussion
- Russia May Halt Kazakh Oil Transit to Europe From May 1
- ERG Cuts Cobalt Output in Congo After Export Restrictions
- Why Foreign Investors Complain About Kazakhstan
- Analysts Warn That Rising Costs Are Eating Into Kazakhstanis’ Incomes
- Miners in Kazakhstan May Receive Lifetime Payments
- Kostanay Farmers Again Demand Permission to Shoot Saigas in the Fields
