Canadian Condor Energies to launch LNG production in Kazakhstan in 2025

Canadian Condor Energies Inc. has received a quota for natural gas (LNG). The company is going to use this gas for production of liquified natural gas starting in 2025.

«Condor Energies Inc., a Canadian-based energy transition company is pleased to announce that it has received a natural gas allocation from the government of the Republic of Kazakhstan. The gas allocation will be used as feed gas for the company’s first modular liquefied natural gas production facility,» the company said in a statement.

The feed gas will be liquefied to produce up to 350 tons per day of LNG, which can fuel approximately 125 rail locomotives or 215 large mine haul trucks with 150 tons haul capacity. The CO2 emission reductions associated with using this LNG volume to displace diesel fuel equates to removing over 31,000 cars from service annually. Construction of the facility is expected to take 12 to 18 months and will be set into operation in 2025.

Condor Energies has acquired 12 hectares of industrial land where the first modular LNG facility will be constructed. Front-end engineering and design is complete and detailed engineering will commence shortly.  Discussions are underway with end-users to confirm LNG volume commitments and Condor Energies is reviewing project funding alternatives before proceeding with construction, the company said in a statement.

«We are very happy and appreciative to receive this Gas Allocation that advances our vision of producing Kazakhstan’s first LNG. This is a significant milestone as Kazakhstan has been experiencing natural gas shortages, which was impacting our ability to secure a long-term LNG feedstock gas supply contract,» President and CEO of Condor Energies Don Streu said.

As he noted, once the gas production is launched, this LNG might be used as fuel at the Trans-Caspian International Transport Route (TITR). According to Condor, it is working closely with Kazakhstan’s national railway and marine companies to implement an LNG solution in 2025.

LNG produced by Condor might be used in a wide range of transportation including rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, agricultural machinery, and other equipment with large diesel engines. The company is implementing an LNG liquefaction technology that was originally developed by the U.S. Department of Energy. The «modular» nature of this technology will allow Condor to right-size LNG production facilities in various regions of Kazakhstan to match local demand.

As Condor highlights, conventional full-scale LNG plants are complex, expensive, and require construction times of five or more years before production commences. Costing upwards of $10 to $15 billion, they are generally constructed at locations that support export sales of LNG via marine tankers.

Conversely, modular LNG plants have significantly smaller footprints and are decentralized, providing the ability to localize LNG production and distribution. Modular plants are efficient, cost-effective and can be tailored to multiple industries and end-users with construction timelines of only 12 to 18 months.

Condor Energies is a TSX-listed energy transition developer focused on diverse initiatives in Central Asia and Turkey. With producing gas assets, an ongoing project to construct and operate Central Asia’s first LNG facility and a separate project to develop and produce lithium brine, the company has built a strong foundation for reserves, production and cash flow growth while also striving to minimize its environmental footprint.