top of page

Message

Meta Text Info

Fetching Project...

Karachaganak Gas Processing Plant (KGP) Updated

Project ID:

150520257

Project Name:

Karachaganak Gas Processing Plant (KGP) Updated

Project Sector:

Oil & Gas

image.png

Project Description

The Karachaganak Gas Processing Plant is a major infrastructure project designed to process approximately 4.5 billion cubic meters of natural gas annually from the Karachaganak oil and gas condensate field. The project aims to maximize gas monetization and increase liquid hydrocarbon production post-2028. It will reduce reliance on gas exports for processing in Russia and enhance Kazakhstan’s energy independence. The plant will incorporate modern gas treatment technologies to minimize environmental impact. It is strategically located near the existing Karachaganak Processing Complex (KPC). The project is critical for the long-term development of the Karachaganak field, which is one of the largest in the world by reserves. Expected outputs include stabilized condensates, LPG, and treated natural gas. The facility will also support domestic energy supply and export potential. Environmental and safety standards will comply with international norms, with public consultations conducted for associated O&M activities. The plant’s construction reflects the collaboration between international oil companies and Kazakh state entities.

Project Phase:

Procurement & Construction

Investment Value:

6 000 000 000 $

Location:

West Kazakhstan Region, near the Karachaganak Processing Complex (KPC)

Start Date:

6/30/2026

End Date:

12/31/2030

Involved Companies

Company:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Role:

░░░░░░░░░░░░░░░░░░░░░░░

Address:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Phone:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Email:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Website:

░░░░░░░░░░░░░░░░

Other links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Key Contacts

Name:

░░░░░░░░░░░

Position:

░░░░░░░░░░░░░░

Phone:

Value

Email:

Value

Links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Name:

░░░░░░░░░░░░░░

Position:

░░░░░░░░░░░░░░░░░░░

Phone:

Value

Email:

Value

Links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Company:

░░░░░░░░░░░░░░░░░░░░░

Role:

░░░░░░░░░░░░░░░░░░░

Address:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Phone:

░░░░░░░░░░

Email:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Website:

░░░░░░░░░░░░░░░░░░░

Other links:

Value

Key Contacts

Name:

Value

Position:

Value

Phone:

Value

Email:

Value

Links:

Value

Name:

Value

Position:

Value

Phone:

Value

Value

Email:

Links:

Value

Company:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Role:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Address:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Value

Phone:

Email:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Website:

░░░░░░░░░░░░░░░░░░

Other links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Key Contacts

Name:

░░░░░░░░░░░░░░

Position:

░░░░░░░░░░░░░░░░░░░░░░░

Phone:

Value

░░░░░░░░░░░░░░░░

Email:

Links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Name:

░░░░░░░░░░░░░░░░░░░░

Position:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Phone:

Value

Email:

░░░░░░░░░░░░░░░

Links:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Company:

░░░░░░░░░░░░░░░░░░░░░░░░░

Role:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Address:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Phone:

░░░░░░░░░░░░░░

Email:

░░░░░░░░░░░░

Website:

░░░░░░░░░░░░░░░░░░░░░░░░░░░░

Other links:

Value

Key Contacts

Name:

░░░░░░░

Position:

░░░░░░░░░░░░░░░░░░░░

Value

Phone:

Value

Email:

Links:

Value

Name:

Value

Position:

Value

Phone:

Value

Email:

Value

Links:

Value

Company:

VALUE

Role:

Value

Address:

Value

Phone:

Value

Email:

Value

Website:

Value

Other links:

Value

Key Contacts

Name:

Value

Position:

Value

Value

Phone:

Email:

Value

Links:

Value

Name:

Value

Position:

Value

Phone:

Value

Value

Email:

Links:

Value

Other important details

  • PSA vs National Control: Disagreements over PSA conditions led Kazakhstan to consider modifying or bypassing the original Production Sharing Agreement.

  • Project Delays: Construction start dates have been repeatedly postponed due to ownership disputes, contract renegotiations, and financing uncertainties.

  • Rising Costs: The project budget has grown from initial estimates (~$3.2 billion) to nearly $6 billion, complicating negotiations with international partners.

  • Foreign Partner Concerns: Shell and Eni reportedly hesitate to commit further investments under the revised Kazakh government terms.

  • Government Pressure: Kazakhstan aims to complete the plant to process local gas domestically instead of exporting unprocessed volumes, applying political pressure on partners.

  • Technical Complexity: The plant’s design is highly complex, requiring advanced engineering and integrated construction, which adds risk to timelines and costs.

  • Interim Gas Processing: Until KGP is built, some gas continues to be sent to Orenburg Gas Processing Plant, creating logistical and contractual dependencies.

  • Strategic Importance: KGP is critical for national energy security, long-term LPG and liquids production, and reducing reliance on foreign processing facilities, keeping all stakeholders under intense scrutiny.

bottom of page