Development Bank of Kazakhstan to Finance Gas Plant Construction in Kashagan Oil Field

Development Bank of Kazakhstan considers its possible participation in the syndicated loan issuing. As the bank’s deputy head Duman Aubakirov said, the loan is intended to provide financial resources needed for the construction of the new gas reprocessing plant in the Kashagan oil field in West Kazakhstan.

«We are considering the issue about bank’s participation in the financing of the new gas plant in Atyrau. This is a syndicated loan from several banks and international institutions. Currently, the examination process is underway,» said Aubakirov at the briefing in Nur-Sultan. 

As the bank official specified, the new plant is designed for reprocessing fossil gas. Natural gas is produced in Kashagan along with petroleum, and the amount of both types of fuel has recently started increasing.  

According to the press service of Kazakhstan’s prime minister, the construction of the gas plant in Kashagan, which costs $860 million and launched by GPC Investment, will be completed at the end of 2021. In the initial stage, the plant’s output may reach one billion cubic meters of gas a year. 

The construction site for the new gas plant is located in the Makat district of the Atyrau region, 12 kilometers northeast from the Bolashak oil and gas production unit and five kilometers south from Iskene railways station. All these sites are parts of the massive Kashagan oil field.

As Kursiv edition was told by Ziyash Kiyakbayev, former head of the Department of Oil and Gas under Kazakhstan’s Ministry of Energy, the gas supply may start in 2023 and would last until 2041.

«The possible output of the plant in the future may reach the number of five billion cubic meters of natural gas. The government is discussing this issue, but there are no specific deadlines or conceptual decisions yet,» Kiyakbayev noted.