### Kazakhstan and Shell Forge Ahead with New Gas Processing Plants for Kashagan and Karachaganak Fields
In a strategic move aimed at bolstering Kazakhstan’s hydrocarbon production and meeting the growing demand for commercial gas, the Ministry of Energy (MOE) of Kazakhstan and Shell PLC have initiated discussions to advance the development of two significant gas processing plants at the Kashagan and Karachaganak fields.
#### Facility Capacities and Timeline
1. **Kashagan Field:**
– The proposed gas processing plant at the Kashagan field is set to process 2.5 billion cubic meters of gas annually. This project is part of the field’s second-phase (2A) expansion, aimed at boosting oil and condensate production to around 710,000 barrels per day over the next decade. Initially, the plant plans to increase oil production to 500,000 barrels per day by supplying raw gas to the planned gas processing facility.
– Construction of the first phase of the Kashagan gas processing plant is already underway, with a target capacity of 1 billion cubic meters. It is expected to commence operations by 2026, followed by the larger phase which could be operational by 2029-2030 if approved.
2. **Karachaganak Field:**
– The planned gas processing plant at the Karachaganak field is designed to handle 4.5 billion cubic meters of gas annually. This massive project is estimated to cost $3.2 billion and is slated for commissioning by 2028.
– To maintain production levels at 10-11 million tonnes per year, the field operator Karachaganak Petroleum Operating BV (KPO) is implementing a project to install additional 5th and 6th gas recirculation compressors to increase oil yield and maintain pressure.
#### Strategic Partnership
Kazakhstan’s Ministry of Energy emphasizes the strategic importance of Shell’s involvement in these projects,