Kazakhstan's national oil and gas company, KazMunayGas, progresses Kashaganproject and energy collaborations during U.S. conferences.
Hittin' the Gas in Kazakhstan: KMG's All-Out Energy Ambitions
ASTANA - KazMunayGas (KMG) honcho Askhat Khassenov didn't mince words when emphasizing Kazakhstan's full-bore pursuit of the Kashagan oilfield and broader energy ventures during high-powered meetings with industry bigwigs in the U.S. Topics ranged from boosting local content in mega oil and gas projects, green energy collaborations, and refinery modernization, according to the KMG press service.
Snap a gander at the snaps below! 📸
The North Caspian Project: TotalEnergies, a Match Made in Heaven?
On March 11, Khassenov locked horns with TotalEnergies Chair and CEO Patrick Pouyanné, solidifying the North Caspian project's economic import. Khassenov pledged KMG's commitment to enriching local participation in those major oil and gas projects that Kazakhstan's energy sector yearns for.
Major discussions revolved around renewable energy collaboration, tapping into TotalEnergies' expertise. They eyed initiatives to slash greenhouse gas emissions, including the one-gigawatt Mirny wind power plant project in the Zhambyl Region, which dovetails with Kazakhstan's decarbonization goals under the Paris Agreement. Moreover, KMG bore down on TotalEnergies' carbon capture, utilization, and storage (CCUS) projects, particularly Norway's Northern Lights initiative.
Eni: Kashagan, Gas Processing, and Solar Power Paradise
During the American sojourn, Khassenov peppered Eni's Chief Operating Officer Guido Brusco with questions about the Kashagan oilfield. By year's end 2024, local content in goods, works, and services reached 62.1% or $656.4 million in the North Caspian Operating Company (NCOC) and 65% or $679.6 million in the Karachaganak Petroleum Operating consortium (KPO).
The pair tackled a gas processing plant at Karachaganak capable of processing 4.5 billion cubic meters of raw gas annually. KMG even extended an olive branch for Eni to co-invest in new geological exploration projects.
A joint project to construct a 247-megawatt (MW) hybrid power plant in the Mangystau Region is the making! The solar power plant is slated for completion in Q3 2025, while the hydroelectric and wind plants will be finished by 2026.
Operational Efficiency and Refinery Revelations
Khassenov sat down with Charles Reith, president and CEO at Solomon Associates, a global guru for oil and gas consulting. Since 2020, Solomon's 109 recommendations for KMG's refineries in Atyrau, Pavlodar, and Shymkent have yielded economic benefits aplenty. Investment returns far outpaced initial costs by 2-5 times at the Atyrau and Pavlodar refineries, and an impressive $306 million has been scooped over seven years from Rompetrol Petromidia.
KMG is considering adopting turnaround benchmarking at its refineries to embark on a three-year turnaround cycle. The company shows interest in fresh research projects at the Atyrau oil refinery, Rompetrol Petromidia, and CaspiBitum.
During the annual energy triathlon, CERAWeek, hosted by S&P Global, Khassenov had a chinwag with S&P Global Vice Chairman Daniel Yergin to discuss Kazakhstan's oilfield and gas sector growth amidst the whirlwinds of change.
What's the Latest?Kazakhstan's lunge towards a diverse energy strategy is gaining traction. While eyeing continued oilfield development with international oil majors like TotalEnergies and Eni (though no recent intricate details were found), Kazakhstan is on a rampage to advance renewable energy endeavors, fortified by auctions, international partnerships, and eco-settlement projects. Ambitious refinery modernization is underway, boasting backing from the World Bank and international support. This integrated approach seeks to elevate Kazakhstan's energy self-reliance, sustainability, and economic robustness through 2025 and beyond.
Sources:1. Ministry of Energy2. Samruk-Kazyna3. UAE news agencies4. Masdar5. World Bank
- Kazakhstan's energy ventures extend beyond oil and gas, as KMG pursues renewable energy collaborations with industry giants like TotalEnergies, aiming to reduce greenhouse gas emissions and develop projects like the Mirny wind power plant and the Mangystau Region's hybrid power plant.
- In the finance realm, Kazakhstan's energy sector is seeking international backing for its refinery modernization, with the World Bank providing support, and also considering adopting turnaround benchmarking at its refineries to optimize operations and boost economic returns.
- As part of its diverse energy strategy, Kazakhstan is also advancing its renewable energy sector by incorporating auctions, international partnerships, and eco-settlement projects, aiming to enhance energy self-reliance, sustainability, and economic robustness through 2025 and beyond.
