Kazakhstan's QazaqGaz continuing negotiations with Qatar's UCC Holding on gas processing plant project at Kashagan, not seeking new investors for now

ASTANA. April 8 (Interfax) - Negotiations on the joint implementation of the project to build a second gas processing plant (GPP) at the Kashagan field with Qatar's UCC Holding are ongoing, the Kazakh national company QazaqGaz told Interfax.

"The negotiation and work processes on the project with the Qatari investor continue in accordance with established procedures. Of course, the current geopolitical situation in the Middle East is being taken into account by all participants in international projects. All further decisions on the project will be made taking into account contractual obligations, economic feasibility and the interests of Kazakhstan," QazaqGaz said in response to Interfax's inquiry.

"As for the issue of new investors, such a question is not on the agenda at the current stage," the company said.

"At the same time, as with any strategically important project, QazaqGaz proceeds from the need to ensure its sustainable implementation and will make decisions based on the country's national interests," QazaqGaz said.

As reported, QazaqGaz and Qatar's UCC Holding have completed the Pre-FEED stage for the project to build a second GPP at Kashagan with a capacity of 2.5 billion cubic meters per year. QazaqGaz said that a transition to the FEED stage is currently planned, and approaches to the project's contracting strategy are being developed. The amount of investment required for the second GPP project has been determined, but the amount is subject to clarification during the further development of the project documentation at subsequent stages, the company said.

Kashagan is an offshore oil and gas field in the Kazakh sector of the Caspian Sea. It is the largest international investment project in the country. Recoverable reserves amount to 9 billion to 13 billion barrels of oil. Commercial production began on November 1, 2016.

JSC QazaqGaz is the national operator of the gas transportation and gas distribution network in Kazakhstan. It ensures international transit, sells gas on domestic and foreign markets, and develops, finances, constructs and operates pipelines and gas storage facilities. The company is part of the Samruk-Kazyna fund.