Kazakhstan Prepared to Build Karachaganak Gas Plant With Alternative Contractor if Needed
Photo: KMG press service
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
Latest news
- Who Is Now Protecting Investors In Kazakhstan
- No One Was Punished For LGBT Propaganda In Kazakhstan — Ministry Of Culture
- Can Kazakhstan Really Send Green Power To Europe Through The Black Sea?
- Why Kazakhstan’s Army Is Struggling To Win Over Young Recruits
- A New Transit Era May Cost Almaty Dozens Of Buildings
- From Patient Care To Italy Trips: Prosecutors Uncover Embezzlement Scheme In Astana
- Kazakhstan Clears The Sky For Turkish Military Transit
- Why Kazakhstan’s Financial Companies Are Being Pushed Toward Aitu
- What AI Found In Almaty’s Spring Air
- Kazakh Potato Shipment Turned Back At Kyrgyz Border
- Kazakhstan To Resume Raising Women’s Retirement Age
- How Many Conscripts Kazakhstan Plans To Draft This Spring
- Kazakhstan Will Not Hold A Military Parade On Victory Day This Year
- Are Kazakhstan’s Air Defenses Ready To Shoot Down Foreign Drones? The Defense Ministry Responds
- Kazakh Women Are Having Fewer And Fewer Children — The Lowest Level In Nearly Two Decades
- Bloggers And Coaches Will Not Be Allowed To Pose As Psychologists In Kazakhstan
- Schools, Bridges And Power Plants In Kazakhstan To Be Built Under New BIM Rules
- Kazakhstan Does Not Plan To Introduce Penalties For “Religious Propaganda”
- After Beach Tragedies, Will Holidays In Konaev Be Safer?
- Kazakhstan To Deploy Nearly 60 Drones Against Locust Threat
