Kazakhstan Prepared to Build Karachaganak Gas Plant With Alternative Contractor if Needed

Talks are ongoing, but the ministry is ready to proceed independently, reports Orda.kz, citing Reuters.

A final investment decision on the gas processing plant (GPP) at the Karachaganak field is expected in October–November 2025, according to a written response from Kazakhstan’s Ministry of Energy to a Reuters inquiry.

Negotiations with the shareholders of the international consortium Karachaganak Petroleum Operating (KPO) have been ongoing since December 2022. The consortium includes Shell (29.25%), Eni (29.25%), Chevron (18%), Lukoil (13.5%), and KazMunayGas (10%). The Ministry of Energy emphasizes that no official refusals to jointly implement the project have been received from the partners, the Ministry said.

Nonetheless, if the investment decision is unfavorable, the government is considering building the GPP through JSC "NC KazMunayGas" or bringing in a new contractor. This is due to the plant’s strategic importance in reducing Kazakhstan’s dependence on gas processing abroad.

Currently, raw gas from Karachaganak is sent to the Orenburg GPP in Russia. The contract with KazRosGas runs through January 2038, but its terms are under review.

Earlier, it was reported that Shell and Eni received letters requesting a halt to construction over attempts by investors to shift costs to the state. The national company KazMunayGas is prepared to take control of the project, with the Hyundai Engineering–Sicim consortium remaining a key contractor.

Original Author: Ruslan Loginov