Gas deal between Kazakhstan and Qatari UCC Holding to be finalized within 2 months - Energy Ministry

ASTANA. March 1 (Interfax) - The final terms of the deal for the projects in the gas sector with the participation of the Qatari company UCC Holding will be determined within two months, the Kazakh Energy Ministry press service said.

QazaqGaz JSC and Qatari UCC Holding signed four binding agreements on the main terms of transactions totaling $11 billion during the Kazakh president's visit to Qatar in mid-February. The agreements provide for the implementation of the following projects: construction of two gas processing plants with capacity of 1 billion and 2.5 billion cubic meters at the Kashagan field, the construction of a new compressor station KS-14 and trunk gas pipeline from KS-14 to Kostanay, as well as the construction of the second line of the trunk gas pipeline Beineu-Bozoy-Shymkent.

The Energy Ministry said project for the construction of the KS-14 - Kostanay pipeline in the Aktobe and Kostanay regions is of strategic importance and is aimed at gasification of both areas and large investment projects in the Kostanay region.

The project for the construction of the second line of the Beineu-Bozoy-Shymkent gas pipeline is important for the southern and central regions of Kazakhstan.

The construction of gas processing plants in Kashagan will increase the processing capacity and resource base of commercial gas in the country.

The construction company UCC Holding is part of Power International Holding.