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
- Kazakhstan’s Credit Rating Upgraded for First Time in a Decade
- While Thousands Lost Power, KEGOC Executives Received Nearly Half a Billion Tenge
- Changi Airport Group May Help Build Astana’s New Airport
- US Again Extends Deadline for Lukoil to Sell Its Assets in Kazakhstan
- Kazakhstan Extradites Business Manager From Russia in 290 Million Tenge Tax Case
- Released Amur Tiger Successfully Hunts in Kazakhstan’s Wild
- Kazakhstan Moves to Develop Critical Minerals as Global Competition Intensifies
- Another Performance by Kazakh Stand-Up Comedian Called Off
- Uzbekistan Begins Preparations for Second Nuclear Power Plant
- Backpack Links Glacier Remains to Man Missing for 19 Years
- 650-Hectare Wildfire Contained in Karaganda Region
- Unusual Wildlife Encounter Captured in Altyn-Emel
- Retired Border Service Dog Sold for $2 at Kazakhstan Auction
- Will Kazakhstan Have Enough Coal This Winter?
- Belarusian Hikers Find Body on Glacier Near Almaty
- Kazakhstan Investigates Spending on 242 Million Tenge Educational Game
- Kazakhstan Makes Caspian Oil Companies Pay for Counterterrorism Deployments
- Kazakhstan Faces Shortage of 245,000 School Places
- Waste Dumping Reported Near Yurt Camps at Lake Zaisan
- Kazakh Oil Rerouted to Novorossiysk as Russia Frees Baltic Export Capacity
