QazaqGaz to implement Karachaganak gas plant project with China’s CITICState gas company QazaqGaz has been appointed operator of a project to build a gas processing plant at the Karachaganak field, to be implemented in cooperation with China’s CITIC Construction, Kazakhstan’s Energy Ministry said.Energy Minister Yerlan Akkenzhenov was briefed on the project’s status, including confirmation of its economic viability and the signing of a framework agreement with CITIC Construction. Preparations are underway for the front-end engineering and design (FEED) stage, alongside discussions on land allocation, infrastructure and feedstock supply, the ministry said.“QazaqGaz will serve as the sole operator of this strategic project. This decision reflects the need to move swiftly to implementation and the company’s extensive experience in managing large-scale gas assets,” the statement said.Akkenzhenov stressed the need to resolve outstanding issues, including guaranteed raw gas supply, pricing — particularly ensuring a commercially viable domestic sales price — and integration of the plant with existing field infrastructure.“The plant is critical for Kazakhstan, and further delays are unacceptable. The government expects tangible results and wants the project to move ahead in line with national economic interests,” the minister was quoted as saying.He added that construction of the plant, with planned capacity of up to 5 billion cubic meters per year, is a key element of Kazakhstan’s gas sector development plan through 2029.“The main objective is to meet growing domestic demand for commercial gas and reduce import dependence by diversifying processing capacity, which has historically relied on the Orenburg gas processing plant,” he said.Kazakhstan earlier ruled out participation by Shell and Eni after the Karachaganak consortium failed to reach a final investment decision on the project.The plant, originally planned to have a capacity of 4 billion cubic meters per year, was slated for completion in 2028. Kazakhstan’s Energy Ministry earlier said that building a domestic gas processing facility at Karachaganak was the country’s strategic priority.The Karachaganak oil and gas condensate field is one of the largest in the world. Its reserves are estimated at 1.2 billion tonnes of oil and 1.35 trillion cubic meters of gas. It is operated by Karachaganak Petroleum Operating B.V., which is comprised of Shell that owns a 29.25% holding in KPO through its 100% affiliate company BG Karachaganak Ltd, Eni (29.25%), Chevron (18%), LUKOIL (13.5%), and KazMunayGas (10%). Karachaganak Petroleum Operating has been developing the Karachaganak field since 1997 on the basis of a 40-year production sharing agreement.Gas from the Karachaganak field is currently processed at the Orenburg Gas Processing Plant in Russia under a long-term agreement between KPO and KazRosGas, which was signed in 2007 and extended in 2015 through 2038 with volumes of up to 9 billion cubic meters per year. (ICE ALMATY)

Fonte notizia: INTERFAX