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 Cancels Exam Results For More Than 700 University Applicants
- Astana LRT Operator Looks For Funding In China
- Smoke From Russian Wildfires Reaches Eastern Kazakhstan
- Kazakhstan Offers EU A Broader Partnership In Eurasia
- Oil Leak Reported In Caspian Sea Near Azerbaijan Coast
- Kazakhstan To Build 250 Roadside Service Stations For 180 Billion Tenge
- Police Chase With Kazakh Driver In Phuket Ends In Crash And Injuries
- Foreigners Moving To Kazakhstan Are Choosing Big Cities Over Most Regions
- Turkestan Region Leads Kazakhstan In Twin Births
- From Grain To AI: What Kazakhstan Brought To Afghanistan
- Helicopters Drop 39 Tons Of Water On Forest Fire In East Kazakhstan
- Kazakhstan Tightens Border Checks Despite Saying There Is No Fuel Shortage
- Kazakhstan Seeks Greek Investment In Energy And Transport
- Global Rating Agency Confirms Kazakhstan’s Investment-Grade Status
- Kazakh Company Sent $16 Million To China, Got No Goods And A Huge Fine
- Kazakh Parties Are Losing Focus With Overly Broad Programs, Expert Says
- Almaty Man Registered 990 People In One-Room Apartment And Received Sentence
- Montenegro President Makes First Official Visit To Kazakhstan
- Gas Prices In Kazakhstan To Rise From July 1
- Kazakhstan’s Oldest Gold Mining Company Resold For 8.7 Billion Tenge
