National Company KazTransGas JSC and NCOC signed the Agreement on joint work on the Basic Design of the 2A Phase of the Kashagan field

PRESS RELEASE

North Caspian Project Operator North Caspian Operating Company N.V. (NCOC) and National Company KazTransGas Joint Stock Company announce the signing of the agreement on joint work on the Basic Design of the Phase 2A of the Kashagan field for the period 2022-2023, which implies the increase in the processing capacity of raw gas from the Kashagan field by 2 bln. m3.

Phase 2A provides the increase in oil production by approximately 50 000 barrels per day from the Kashagan field by processing 2 BCMA of sulfur gas.

To implement Phase 2A, the NCOC Operator will need to construct two gas pipelines for transportation of sulfur gas along the existing route: one from the Kashagan offshore complex to the Bolashak OGPF (Oil and Gas Processing Facilities) and the second from the Bolashak Unit to the Gas Treatment Plant (GTP) of 1 bln. m3.  Performance of small amount of work on upgrading the existing structures of the offshore and onshore complexes is also provided.

The project provides the construction of a new gas treatment plant for processing sulfur gas with a capacity of up to 2 BCMA, in addition to the already ongoing project of the construction of a gas treatment plant with a capacity of 1 BCMA.

Implementation of this project is the fulfillment of the instruction of  Kassym-Zhomart Tokayev, the President of Kazakhstan, given to the Cabinet of Ministers and the Samruk-Kazyna State Fund to increase the resource base for the production of marketable gas and develop new approaches to market regulation. “There is a risk of gas shortages. New incentives are needed for the intensive development of hydrocarbon raw materials and replenishment of the national fund. I instruct the Government to take measures to accelerate the construction of petrochemical plants and establish attractive conditions for potential investors”, – the President of Kazakhstan said at an expanded government meeting on January 26, 2021.

According to Olivier Lazard, Managing Director, NCOC, KazTransGas is currently implementing a very important project of increasing the processing capacity. “The Kazakhstani gas company is taking very big steps in this direction. In light of the fact that the role of gas is increasing every year and the complete transition from coal to gas is coming, we have a lot of joint work ahead of us. We are now at an important stage in the subsequent development of the Kashagan field.  Note  that the final decision on Phase 2A will be determined based on the results of the Basic Design, which is to be performed under the signed agreement”, – said Olivier Lazard.

Implementation of this project will have a significant impact on the socio-economic growth of the Atyrau region, the increase in the gas resource base and will give a stimulating effect to the development of the economy of the whole Kazakhstan.

Press Service of NC KazTransGas JSC       

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