ASTANA, Kazakhstan, September 4. Liquefied petroleum gas (LPG) from the Kashagan field will be supplied to the domestic market of Kazakhstan, Trend reports, citing the Ministry of Energy of Kazakhstan.
An agreement on the terms of the sale and purchase transaction for Kashagan liquefied petroleum gas was reached following negotiations between the partners of the North Caspian project and QazaqGaz, with the participation of the Ministry of Energy and PSA LLP.
The strong demand for liquefied petroleum gas in Kazakhstan's domestic market has prompted this action.
As the Ministry noted, the signing of the agreement was an important stage in the cooperation aimed at making a final investment decision on the project.
According to the terms of the agreement, the supply of Kashagan liquefied petroleum gas is planned for the end of 2025, with the maximum design capacity of more than 700 thousand tons per year reached by 2027 after the completion of infrastructure work.
Currently, QazaqGaz is working on the design and placement of orders for the necessary technological equipment to ensure the reception, storage, transshipment, and fractionation of Kashagan liquefied petroleum gas.
"These supplies will have a positive impact on the socio-economic situation in the regions of Kazakhstan, will help reduce the deficit of liquefied petroleum gas, and will promote the development of the gas chemical industry in the country," the ministry said.
Meanwhile, in 2023, Kazakhstan's gas output was 59.063 billion cubic meters, with the largest fields being Tengiz (16.009 billion cubic meters), Karachaganak (22.385 billion cubic meters), Kashagan (11.856 billion cubic meters), and others (8.813 billion cubic meters).
To note, the Kashagan field is an offshore oil field in Kazakhstan's zone of the Caspian Sea. The development of the field is carried out by the international joint venture North Caspian Operating Company (NCOC) in accordance with the production sharing agreement dated November 18, 1997. Industrial production at the field began on September 11, 2013.
