Hyundai wins contract to build gas processing plant at Kazakhstan's Karachaganak field
Hyundai Engineering has signed a contract to build a large gas processing plant at the Karachaganak field in western Kazakhstan. "Hyundai Engineering has received a letter of award for a major gas processing plant project in Kazakhstan, further expanding its presence in Central Asia," the company said.
The Karachaganak GPP project involves the construction of a large-scale gas processing facility and related infrastructure capable of processing up to 5 billion cubic meters of raw gas annually within the Karachaganak Processing Complex, according to Hyundai Engineering.
Kazakhstan's Energy Ministry previously said that national company QazaqGaz had been designated as the operator of the GPP construction project at Karachaganak. According to the ministry, a framework cooperation agreement for the project was signed with China's CITIC Construction.
Kazakhstan earlier ruled out participation by Shell and Eni after the Karachaganak consortium failed to reach a final investment decision on the project.
The plant, planned capacity originally 4 billion cubic meters per year, was slated for completion in 2028. Kazakhstan's Energy Ministry earlier said that building a domestic gas processing facility at Karachaganak was the country's strategic priority.
The Karachaganak oil and gas condensate field is one of the largest in the world. Its reserves are estimated at 1.2 billion tons of oil and 1.35 trillion cubic meters of gas. It is operated by Karachaganak Petroleum Operating B.V., which is comprised of Shell that owns a 29.25% holding in KPO through its 100% affiliate company BG Karachaganak Ltd, Eni (29.25%), Chevron (18%), Lukoil (13.5%), and KazMunayGas (10%). Karachaganak Petroleum Operating has been developing the Karachaganak field since 1997 on the basis of a 40-year production sharing agreement.
Gas from the Karachaganak field is currently processed at the Orenburg Gas Processing Plant in Russia under a long-term agreement between KPO and KazRosGas, which was signed in 2007 and extended in 2015 through 2038 with volumes of up to 9 billion cubic meters per year.
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