Contract signed for construction of second GPP at Kazakhstan's Kashagan with capacity of 2.5 bcm

ASTANA. Nov 6 (Interfax) - Kazakh national company QazaqGaz has signed a contract for the design, procurement of equipment for, construction and commissioning (EPCC contract) of a new gas processing plant (GPP) with a capacity of 2.5 billion cubic meters per year at the Kashagan field.

"On November 6, as part of a working trip to China, the chairman of the board of JSC QazaqGaz, Alibek Zhamauov, held negotiations with Chinese partners on the project to build a gas processing plant with a capacity of 2.5 billion cubic meters per year based on raw materials from the Kashagan field. The main outcome of the meeting was the signing of the EPCC contract," QazaqGaz said in a statement.

The agreement was concluded by the national company's subsidiary, QazaqGaz Processing LLP, and a consortium that includes China National Chemical Engineering Sixth Construction Company - Kazakhstan Branch, China Wuhuan Engineering Corporation Ltd., and the Kazakh LLPs AVC Production and C-NRG (Synergy).

"The construction of the new plant is strategically important for Kazakhstan and is being carried out in fulfillment of the head of state's instructions. The launch of the facility will make it possible to significantly increase raw gas processing from Kashagan, as well as to provide the domestic market with additional amounts of commercial gas, liquefied petroleum gas (LPG) and sulfur, which will strengthen energy security and the economic potential of the region," the company said.

The construction of the second GPP at the Kashagan field with a capacity of 2.5 bcm of gas per year will be completed by 2030, and the first gas processing plant at Kashagan with a capacity of 1 bcm per year, currently being built by QazaqGaz, is expected to be commissioned in 2027, Kazakh Energy Minister Erlan Akkenzhenov previously said.

QazaqGaz represents the state's interests in the domestic and international gas markets. The company is part of the Samruk-Kazyna state fund and manages the centralized infrastructure for transporting commercial gas through main gas pipelines and gas distribution networks.