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East Kashagan Project: Export infrastructure will be driven by gas field

Published on Sunday 11th October 2009

Exportation and transportation of gas in Kazakhstan will be driven by production increases from the East Kashagan Project, it has been claimed.

The countrys gas infrastructure was recently assessed by Wood Mackenzie analyst Ian Thom, who claimed more pipelines are needed in order to support the countrys plans for expansion in the sector.

He pointed out that increasing pipeline and spare rail capacity could secure physical export capacities, but added this could be costly.

Furthermore, Mr Thom noted that the estimated cost of developing largescale networks would cost some $10 billion (£6 billion) and could potentially lead to onshore vacancies.

"Developing the new, largescale export infrastructure … will be driven by production increases from the two super giant fields Kashagan and Tengiz," he commented.

He added cooperation between project partners, the countrys government, transit countries and thirdparty pipeline owners will be required for the schemes success.

In related news, Kazakhstan has been in talks with Azerbaijan recently, over the potential of a new pipeline to deliver more oil to the Black Sea region.
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East Kashagan Project: Export infrastructure will be driven by gas field
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