Qatar to construct gas processing facilities in Kashagan
QazaqGas, the national gas company in Kazakhstan and UCC Holding from Qatar have decided to work together to build natural gas processing plants on the Kashagan field. The arrangement followed negotiations between President of Kazakhstan Kassym-Jomart Tokayev and Emir of Qatar Tamim bin Hamad Al Thani, according to the Akorda.kz website.
«After negotiations between President of Kazakhstan Kassym-Jomart Tokayev and Emir of Qatar Tamim bin Hamad Al Thani, QazaqGas, JSC and UCC Holding have signed the agreement aimed at joint implementation of projects related to the construction of the gas processing plants on the Kashagan oil and gas field,» the president’s office reported.
According to Chair of the QazaqGas Board Sanzhar Zharkeshov, the total worth of four contracts he signed with Chair of UCC Holding Moutaz Al-Khayyat is about $11 billion. Under the arrangements, the two sides are going to build two gas processing plants with a capacity of 1 billion and 2.5 billion cubic meters of gas, respectively, per year. In addition, the documents open the door for new investments and financing of the projects. Once the construction of the plants is done, they will significantly boost the resource base for commercial-grade gas in Kazakhstan.
QazaqGaz and UCC Holding are also going to build the second line of the Beyneu-Bozoy-Shymkent pipeline that carries gas to the southern and central regions of Kazakhstan. Along with the pipeline, the two sides will construct a compressor station (CS-14) and the CS-14 – Kostanay pipeline in the Aktobe and Kostanay regions. This project is going to have strategic importance for the country as it’s expected to secure gas supply for various settlements and big investment projects in the Kostanay region.
On top of that, Samruk Kazyna, the Ministry of Energy of Kazakhstan and Power International Holding from Qatar have agreed to jointly undertake different projects in the energy and gas sectors. The two countries have also signed an agreement that will regulate the hiring of Kazakhstani workers in Qatar.
According to Sheikh Tamim bin Hamad Al Thani, Qatar is very interested in joint implementation of the projects.
«We are interested in cooperation and joint implementation of various energy, economic and investment projects. I hope that all those meetings between big companies during your visit will facilitate the partnership in these spheres,» he told President Tokayev.
Tokayev believes that Qatar will be one of the ten biggest investors in Kazakhstan. In turn, Kazakhstan can expand its exports to Qatar in terms of 60 non-commodity items for roughly $250 million. Moreover, Kazakhstan wants to boost the bilateral trade by up to $500 million in the future.
Later, Samruk Kazyna also revealed that the holding, the Energy Ministry and Urban Concessions Investments WLL (a company from Qatar, part of Power International Holding WLL) have reached an agreement aimed at the construction of a combined cycle gas turbine with a capacity of 1,100 megawatts in the Kyzylorda region. The project will allow Kazakhstan to boost energy production in the region and cut the deficit of maneuvering power to boost the overall resilience of the unified energy system of Kazakhstan.
The three sides have also signed a memorandum of understanding on the construction of a gas processing plant with a capacity of 6 billion cubic meters in Kashagan. (Phase 2B would have a capacity of 4+2 billion cubic meters of gas.) Apart from this, Samruk Kazyna has signed an agreement with Nebras Power from Qatar aimed at the construction of a 350-megawatt hydropower station on the Irtysh River. The project is expected to expand generating capacity in the region and help the Shulbinsk Hydroelectric Power Plant mitigate spikes in energy consumption. In addition, Power International Holding from Qatar plans to acquire Mobile Telecom Service, a company that runs the two mobile operators Tele2 and Altel, according to the press service of Samruk Kazyna, although it deleted the news later.
