Kazakhstan’s Ministry of Energy (MOE) and Shell PLC are exploring new development opportunities for the offshore Kashagan and onshore Karachaganak fields, focusing on the construction of two significant gas processing plants.
On August 26, Almasadam Satkaliyev, Kazakhstan’s Minister of Energy, met with senior officials from Shell’s conventional oil and gas division and the company’s Kazakhstan operations. The discussions centered on advancing plans for a 2.5-billion cubic meter per year gas processing plant at the Kashagan field and a 4.5-billion cubic meter per year plant at the Karachaganak field. These talks are part of a broader strategy to expand the existing partnership between Kazakhstan and Shell and to explore future joint geological projects in the region.
While the meeting marked a crucial step in these developments, no specific outcomes were disclosed by either the MOE or Shell.
Shell, through its subsidiary Shell Kazakhstan Development BV, holds a 16.81% stake in the North Caspian Sea PSA Consortium (NCPSA), which operates the Kashagan field located in the northern Caspian Sea. The consortium also includes major partners such as Kazakhstan’s state-owned JSC NC KazMunayGas (KMG), Eni SPA, ExxonMobil, TotalEnergies, China National Petroleum Corp. (CNPC), and Inpex Corp.
For the Karachaganak field, Shell and Eni jointly operate through Karachaganak Petroleum Operating BV (KPO), where they each hold a 29.25% interest. Other partners in KPO include Chevron, PJSC Lukoil, and KMG.
According to Kazakhstan’s 2023 annual report, the proposed Kashagan gas plant is part of the field’s second-phase (2A) expansion, aiming to boost oil and condensate production to around 710,000 barrels per day over the next decade. This would include increasing oil production to 500,000 barrels per day by supplying raw gas to the planned gas processing plant. The Kashagan plant, currently in the preliminary front-end engineering and design (FEED) phase, could be operational by 2029-2030 if approved.
The Karachaganak gas plant, estimated to cost $3.2 billion, is expected to process 4.5 billion cubic meters of gas per year. Pending approval, the plant is slated for commissioning by 2028.
