Kazakhstan starts building LPG plant to process gas from Kashagan field

ASTANA. June 5 (Interfax) - Kazakhstan has started to build a plant in the Atyrau region to fractionate liquefied petroleum gas (LPG) from the Kashagan field, the Energy Ministry said.

"The plant is scheduled for commissioning in early 2026, with full production capacity reached in 2027. Production of up to 700,000 tonnes of liquefied petroleum gas per year is planned at the plant," the ministry told Interfax.

The state-owned Qazqaz is building the plant. The first batch of gas should be supplied to the domestic market in December 2025, the ministry said.

Currently, zero-cycle work is underway: laying foundations for equipment and constructing buildings and infrastructure.

The project is being implemented within the framework of agreements between the Energy Ministry and the contracting companies of the North Caspian Project under the production sharing agreement. In 2024, a liquefied petroleum gas sales and purchase agreement was signed by QazaqGaz JSC and the Kashagan field operator, North Caspian Operating Company (NCOC) LLP, and the project roadmap was approved.

"The project is aimed at ensuring stable supplies of LPG to the domestic market and reducing the deficit of gas motor fuel," the Energy Ministry said.

Kashagan is considered one of the world's largest oil fields discovered in recent decades. Its recoverable reserves range from 9 billion to 13 billion barrels of oil. Commercial production at Kashagan began in the fall of 2016.

The shareholders of the NCOC consortium are: KMG Kashagan B.V. (16.877%); Shell (SPB: RDS.A) Kazakhstan Development B.V. (16.807%); Total EP Kazakhstan (16.807%); Agip Caspian Sea B.V. (16.807%); ExxonMobil Kazakhstan Inc. (16.807%); CNPC Kazakhstan B.V. (8.333%); Inpex North Caspian Sea Ltd. (7.563%).