Kazakhstan endorses terms and conditions of QazaqGaz, UCC Holding gas projects
ASTANA. May 3 (Interfax) - Kazakhstan's government has endorsed the terms and conditions of four gas projects that will be carried out by Kazakhstan's QazaqGaz and Qatar's UCC Holding, the government press service said.
The projects are for the construction of two gas processing plants in Kashagan and two gas pipelines.
The Kazakh government's Energy Council discussed the implementation of the agreements that had earlier been reached by Kazakh President Kassym-Jomart Tokayev and Emir of Qatar Sheikh Tamim bin Hamad Al Thani.
"The meeting participants approved the terms and conditions of the deal. QazaqGaz and UCC Holding reached a consensus on all four projects and will commence their joint implementation in the near future," the press release says.
QazaqGaz press and UCC Holding signed four deals worth $11 billion overall in February this year.
One of them is to build the second line of the Beineu-Bozoi-Shymkent trunk gas pipeline, capacity 15 billion cubic meters per year. Another is to attract investment for the construction of the CS-14 compressor station and trunk pipeline from CS-14 to Kostanai in the Aktobe and Kostanai regions. "The project is of strategic importance and is intended for the gasification of both settlements and large investment projects in the Kostanai region," the press release says.
North Caspian Operating Company (NCOC), the operator of the Kashagan field, in September 2023 began construction of a gas pipeline to a future QazaqGaz gas processing plant, through which 1 billion cubic meters of gas will be transported to the GPP annually.
The length of the gas pipeline from the Bolashak Oil and Gas Processing Plant to GPP will be about 15 km and 16-inch pipes will be used tonnes build it. The launch of this project will increase oil production at the Kashagan field by approximately 25,000 bpd.
The project will, among other things, provide the regions of Kazakhstan with natural gas.
The new gas processing plant with annual capacity of 1 billion cubic meters per year is expected to be put into operation in 2025. Another gas processing plant with capacity of 4 billion cubic meters per year will be built by 2028.
Commercial gas from these two plants will be transported via the Central Asia - Center gas pipeline, and for the northern and southern regions of the country - through the Beineu-Bozoi-Shymkent gas pipeline.
NCOC is owned by KMG Kashagan B.V. with 16.877%; Shell (SPB: RDS.A) Kazakhstan Development B.V., Total EP Kazakhstan, Agip Caspian Sea B.V., and ExxonMobil Kazakhstan Inc. with 16.807% each; CNPC Kazakhstan B.V. with 8.333% and Inpex North Caspian Sea Ltd. with 7.563%.
Kashagan is Kazakhstan's first offshore oil and gas field in the Caspian Sea. It is the largest international investment project in the country. Commercial operation at Kashagan began on November 1, 2016. The recoverable oil reserves of the Kashagan field are estimated at 9-13 billion barrels.
UCC Holding is a Qatari construction company, part of Power International Holding.