### Kazakhstan and Shell Pursue Significant Gas Processing Plant Expansion
Kazakhstan’s Ministry of Energy, under the leadership of Minister Almasadam Satkaliyev, has been actively engaging in discussions with Shell PLC to advance the development of two major gas processing plants at the Kashagan and Karachaganak fields. This strategic partnership aims to enhance the country’s gas processing capabilities, ensuring a steady supply of commercial gas to meet the growing domestic demand.
#### Kashagan Field Developments
The Kashagan field, located in the northern Caspian Sea, is a vital component of Kazakhstan’s oil and gas operations. The discussions centered on the construction of a 2.5-billion cubic meter per year gas processing plant, which is part of the field’s second-phase (2A) expansion. This expansion seeks to boost oil and condensate production to approximately 710,000 barrels per day over the next decade. The raw gas will be supplied to the planned gas processing plant, significantly increasing oil production to 500,000 barrels per day by the end of the decade.
The plant is currently in the preliminary front-end engineering and design (FEED) phase and is expected to come online by 2029-2030, pending final approval.
#### Karachaganak Field Developments
The Karachaganak field, commissioned in 1979, is a major onshore operation in north-west Kazakhstan. In a joint venture with Shell and Eni, Karachaganak Petroleum Operating (KPO) manages the operations. A significant gas processing plant with a capacity of 4.5 billion cubic meters per year is under construction. Estimated to cost $3.2 billion, this plant is slated for completion by 2028.
To maintain production levels at 10-11 million tonnes per year, Karachaganak is currently implementing a project to install additional fifth and sixth gas recirculation compressors. This enhancement aims to maintain