NCOC, QazaqGaz sign agreement to supply Kashagan LPG to Kazakhstan's domestic market from end 2025 - ministry
ALMATY. Sept 4 (Interfax) - The operator of Kazakhstan's Kashagan field, North Caspian Operating Company (NCOC), and QazaqGaz, with the participation of the Energy Ministry and PSA LLP, have reached an agreement on the terms of purchase and sale of Kashagan liquefied petroleum gas, the Energy Ministry said.
"This step was taken due to the high demand for LPG in the domestic market of Kazakhstan," it said.
The ministry said that under the agreement, delivery of Kashagan LPG is planned for the end of 2025, with a maximum design capacity of over 700,000 tonnes per year by 2027, after completion of infrastructure.
QazaqGaz is currently working on the design and ordering of the necessary technological equipment to ensure the receipt, storage, transshipment and fractionation of Kashagan LPG.
QazaqGaz is a portfolio company of the State Fund Samruk-Kazyna. The company manages the centralized infrastructure for transportation of commercial gas through main gas pipelines and gas distribution networks, provides international transit and is engaged in selling gas on the domestic and foreign markets, develops, finances, builds and operates pipelines and gas storage facilities.
The Kashagan field is considered one of the world's largest oil fields discovered in recent decades. Its recoverable reserves range from 9 to 13 billion barrels of oil. Commercial production at Kashagan started in autumn 2016.
The shareholders of the NCOC consortium are KMG Kashagan B.V. (16.877%), Shell (SPB: RDS.A) Kazakhstan Development B.V. (16.807%), Total EP Kazakhstan (16.807%), AgipCaspian Sea B.V. (16.807%), ExxonMobil Kazakhstan Inc. (16.807%), CNPC Kazakhstan B.V. (8.333%) and Inpex North-Caspian Sea Ltd. (7.563%).
PSA LLP acts as the authorized entity under the production sharing agreements for the Kashagan, Karachaganak and Dunga projects. PSA responsibilities include the protection of the interests of the Republic of Kazakhstan in the North Caspian and Kashagan projects and the Dunga field.
