## Kazakhstan and Shell Propose Ambitious Gas Processing Initiatives at Kashagan and Karachaganak Fields
In recent talks, Kazakhstan’s Ministry of Energy and Shell PLC have showcased their commitment to fostering collaboration in the oil and gas sector. The discussions centered on advancing plans for two significant gas processing plants, designed to boost production capabilities at both the Kashagan and Karachaganak fields.
### Kashagan Field: A New Era in Gas Processing
The proposed gas processing plant at the Kashagan field aims to process an impressive 2.5 billion cubic meters of gas per year. This development is part of the field’s second-phase (2A) expansion, which aims to enhance oil and condensate production to approximately 710,000 barrels per day over the next decade. The plant is currently in the preliminary front-end engineering and design (FEED) phase and is expected to be operational by 2029-2030 if approved.
### Karachaganak Field: A Major Capacity Expansion
In contrast, the Karachaganak field is set to house a 4.5 billion cubic meters per year gas processing plant. This project is estimated to cost $3.2 billion and is slated for commissioning by 2028. The plant’s construction is a crucial step in maintaining production levels at 10-11 million tonnes per year. Additional infrastructure, such as installing fifth and sixth gas recirculation compressors, is also underway to sustain pressure and increase oil yield.
### Strategic Partnership and Investment
Kazakhstan and Shell’s collaboration is deeply rooted in strategic partnership. Shell holds a 16.81% stake in the North Caspian Sea PSA Consortium (NCPSA), which operates the Kashagan field. The consortium includes major partners such as Kazakhstan’s state-owned JSC NC KazMunayGas (KMG), Eni SPA, ExxonMobil, TotalEnergies, China National Petroleum Corp. (CNPC), and Inpex Corp