Kazakhstan and Shell are leveraging their strategic partnership to enhance the development of Kazakhstan’s offshore Kashagan and onshore Karachaganak fields through the construction of two new gas processing plants. These initiatives are aligned with the broader goal of increasing oil and gas production, expanding existing partnerships, and exploring future collaborative geological projects in the region.
### Meeting Between Kazakhstan’s Ministry of Energy and Shell
On August 26, Almasadam Satkaliyev, Kazakhstan’s Minister of Energy, met with senior officials from Shell’s conventional oil and gas division to discuss advancing plans for gas processing plants at the Kashagan and Karachaganak fields. The meeting aimed to explore further development opportunities and strengthen collaboration, as stated by Satkaliyev.
### Kashagan Field Developments
Kashagan field, located in the north Caspian Sea approximately 75-80 kilometers southeast of Atyrau, is a significant asset for Kazakhstan. Shell, through its subsidiary Shell Kazakhstan Development BV, holds a 16.81% stake in the North Caspian Sea PSA Consortium (NCPSA), which operates the field alongside major partners like JSC NC KazMunayGas (KMG), Eni SPA, ExxonMobil Corp., TotalEnergies SE, China National Petroleum Corp., and Inpex Corp.
The proposed gas processing plant for Kashagan has a capacity of 2.5 billion cubic meters per year. This project is part of the field’s second-phase (2A) growth project, aiming to increase combined oil and condensate production to approximately 710,000 barrels per day over the next decade. Specifically, oil production is expected to rise to 500,000 barrels per day by supplying raw gas to the planned processing plant.
Currently in the preliminary front-end engineering and design (FEED) phase, the new Kashagan gas plant could reach startup in 2029-2030 if approved. The estimated preliminary construction cost