• 07.06.2023

On the issue of Karachaganak gas

There have been recent publications in the media on the issue of potential processing of Karachaganak gas at Nostrum (“Zhaikmunai”) facilities.

It should be emphasized that the Republic, the Authorized body (PSA LLP) and the Contractor of the Karachaganak Project are not considering the Nostrum option for several reasons, including:

- the lack of certainty regarding the transportation of gas from the field to the processing facilities,

- the need for significant investment to upgrade Nostrum's sour gas processing facilities,

- unstable financial condition of the enterprise, etc.

Thus, this option is not feasible from technical, commercial and legal point of view.

At the same time, we are pleased to note that at present, in order to increase the production of marketable gas for supply to the domestic market, the Ministry of Energy of the Republic of Kazakhstan, JSC “NC “QazaqGas”, together with the Authorized body and the Contractor of the Karachaganak Project are actively working on the Gas Strategy.