The plant's capacity will be 2.5 billion m³ of gas per year. The document was signed on November 6 during a working trip by QazaqGaz head Alibek Zhamauov to China, QazaqGaz reports.

The gist in brief

• The contract for engineering, procurement, construction and commissioning (EPCC) was signed on November 6.
• The plant will process up to 2.5 billion m³ of Kashagan raw gas per year.
• The consortium includes two Chinese companies and two Kazakh companies: China Wuhuan Engineering, China National Chemical Engineering Sixth Construction, AVC Production and C-NRG (Synergy).
• The contract value and construction timeline have not been disclosed.

What was signed

The contract is called EPCC: it covers engineering, equipment supply, construction and commissioning of the plant. The signing was the main outcome of the negotiations that Zhamauov held in China with the project partners. The agreement was concluded between QazaqGaz Processing and the consortium. The company calls the plant strategically important for Kazakhstan: the construction is being carried out pursuant to the head of state's instruction.

Who will build it

The contractor is an international consortium. It includes China Wuhuan Engineering Corporation Ltd., the Kazakh branch of China National Chemical Engineering Sixth Construction Company, as well as the Kazakh LLPs AVC Production and C-NRG (Synergy). The two Chinese contractors were designated by a government resolution: the Ministry of Energy reported this back in June, when the project moved to the stage of practical implementation.

What the plant is needed for

The launch of the plant will noticeably increase processing of Kashagan raw gas and will give the domestic market additional volumes of commercial gas, liquefied petroleum gas (LPG) and sulfur. This should strengthen the region's energy security and increase its economic potential.

The first plant at Kashagan with a capacity of 1 billion m³ per year is already under construction, with its launch scheduled for the third quarter of 2027. Together, the two plants will allow processing of up to 3.5 billion m³ of Kashagan gas per year. The second plant is planned to be completed by 2030, and its cost in 2024 was estimated at $2-2.5 billion.

What has not yet been disclosed

The contract amount and construction schedule are not mentioned in the report. The 2024 estimate and the 2030 deadline are not confirmed in the report about the contract.

What is happening with gas and Kashagan in Kazakhstan

The new plants are needed amid growing demand for gas. Global consumption in 2025 reached a record 4.2 trillion m³, and new processing capacities at Karachaganak and Kashagan could provide about 7.5 billion m³ of commercial gas per year. In Europe, gas at the end of October cost above 100 euros per MWh for the first time since December 2022, and EU energy ministers were looking for a way to soften the rise in winter bills. There is also a gas shortage within the country: the gasification rate grew from 43% in 2016 to more than 64% by the beginning of 2026, but in the North Kazakhstan, Pavlodar and Abai regions there is no gas at all.

Sulfur, which the plant will also produce, remains a subject of dispute around the field. In July, the Ministry of Justice began forcibly collecting about $5 billion from the Kashagan operator for violating sulfur storage rules, while the operator cites an arbitration injunction.

Author's conclusion

The signed contract moves the second plant from the contractor selection stage to the construction stage. The two plants will give Kashagan up to 3.5 billion m³ of processing, but the first one has already been pushed back from 2025 to the third quarter of 2027. The second plant still needs deadlines, and they should be expected from the contractor.