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Phase one of the gas processing plant in Karachaganak may be put in operation in 2019, the press service of the national company KazMunaiGas reported to Interfax-Kazakhstan agency. “The launch of operation of phase one gas processing plant in Karachaganak is planned in 2019, phase two – in 2023,” press service noted in their response to the agency’s inquiry. The press services reminded that the construction of the new plant processing Karachagank gas is scheduled for 2014-2018 after the permission from the participants of the Final Production Sharing Agreement in Karachaganak project is obtained, and without prejudice to KazMunaiGas obligations to Russia according to the Agreement on Collaboration in Joint Enterprise Establishment in Orenburg gas processing plant. KazMunaiGas estimates the construction costs of gas processing plant in Karachaganak at 3.7 billion dollars. At present the project feasibility study is being made. The plants capacity will be 5 billion cubic meters of gas per year. The plant will be built in two stages. The scheduled timing of phase one construction is 2014-2018, phase two is 2018-2022. The key products produced at the plant will be sales gas, condensate and sulphur. In his State-of-theUnion Address to the people of Kazakhstan, President Nursultan Nazarbayev instructed to finish the project design and start the construction of the gas processing plant in Karachaganak gas condensate field. In mid 2007 a work group was set up to carry out the project's feasibility study. At that time KazMunaiGaz estimated the plant's construction expenses at 1.6 billion dollars with the return on investment time span of 9 years. KazMunaiGas reviewed several options of financing for this project: it could be included in the initial program of the third stage of Karachaganak exploration, or implemented as a gas project under the general Production Sharing Agreement, or 100% funded from the state budget, provided that its contractor agrees to purchase the necessary amounts of gas to ensure long-term operation of the plant. Karachaganak gas field is one of the largest in the world. Its oil reserves are estimated at 1.2 billion tons and gas – at 1.35 trillion cubic meters. At present the field is being developed by the international consortium called Karachaganak Petroleum Operating (BG Group – 32.5 %, ENI – 32.5 %, Chevron – 20 %, Lukoil - 15 %) based on the Production Sharing Agreement signed in 1997 for 40 years. On December 14 the government of Kazakhstan signed an agreement with the consortium participants purchasing a 14% share in the project. This agreement will come into force by the end of the first half of 2012.
Phase one of the gas processing plant in Karachaganak may be put in operation in 2019, the press service of the national company KazMunaiGas reported to Interfax-Kazakhstan agency.
“The launch of operation of phase one gas processing plant in Karachaganak is planned in 2019, phase two – in 2023,” press service noted in their response to the agency’s inquiry.
The press services reminded that the construction of the new plant processing Karachagank gas is scheduled for 2014-2018 after the permission from the participants of the Final Production Sharing Agreement in Karachaganak project is obtained, and without prejudice to KazMunaiGas obligations to Russia according to the Agreement on Collaboration in Joint Enterprise Establishment in Orenburg gas processing plant.
KazMunaiGas estimates the construction costs of gas processing plant in Karachaganak at 3.7 billion dollars. At present the project feasibility study is being made. The plants capacity will be 5 billion cubic meters of gas per year. The plant will be built in two stages. The scheduled timing of phase one construction is 2014-2018, phase two is 2018-2022. The key products produced at the plant will be sales gas, condensate and sulphur.
In his State-of-theUnion Address to the people of Kazakhstan, President Nursultan Nazarbayev instructed to finish the project design and start the construction of the gas processing plant in Karachaganak gas condensate field. In mid 2007 a work group was set up to carry out the project's feasibility study. At that time KazMunaiGaz estimated the plant's construction expenses at 1.6 billion dollars with the return on investment time span of 9 years.
KazMunaiGas reviewed several options of financing for this project: it could be included in the initial program of the third stage of Karachaganak exploration, or implemented as a gas project under the general Production Sharing Agreement, or 100% funded from the state budget, provided that its contractor agrees to purchase the necessary amounts of gas to ensure long-term operation of the plant.
Karachaganak gas field is one of the largest in the world. Its oil reserves are estimated at 1.2 billion tons and gas – at 1.35 trillion cubic meters. At present the field is being developed by the international consortium called Karachaganak Petroleum Operating (BG Group – 32.5 %, ENI – 32.5 %, Chevron – 20 %, Lukoil - 15 %) based on the Production Sharing Agreement signed in 1997 for 40 years.
On December 14 the government of Kazakhstan signed an agreement with the consortium participants purchasing a 14% share in the project. This agreement will come into force by the end of the first half of 2012.
