Kazakhstan separates from Shell and Eni

Kazakhstan is pulling the ripcord in its dispute with international energy companies: the government has excluded Shell and Eni from a key gas project. The focus is on the huge Karachaganak field - one of the most important gas deposits in the world. The state project company PSA justified the decision with rising costs, a lack of profitability and differences over the project structure. In the view of the authorities, continuing the project in its current form is "not feasible". In future, Kazakhstan intends to drive the project forward on its own. The aim is to complete the planned gas processing plant and thus strengthen its own energy security. The plant is expected to process up to four billion cubic meters of gas per year. To date, the raw gas has been transported to Orenburg in Russia for further processing - a system that has recently proven to be vulnerable. The schedule for the plant had already been delayed. Completion was originally planned much earlier. At the same time, external disruptions increased the pressure to reduce dependence on foreign infrastructure. The decision thus also marks a strategic realignment: more control over central energy projects should ensure the stability of supply in the long term. Background: unresolved differences There have been tensions between Kazakhstan and the consortium led by Shell and Eni for some time. At the center of the dispute are issues relating to cost allocation and economic participation. Arbitration proceedings have recently strengthened Kazakhstan's position. Even though the proceedings have not yet been finally concluded, they are likely to have had a significant influence on the negotiations. The move shows how the balance of power in energy policy is shifting. Countries with large resources are increasingly opting for more independence - especially when it comes to strategic projects. For Kazakhstan, the Karachaganak field is of central importance. Control over processing and exports is likely to become even more important in the future. The post Kazakhstan separates from Shell and Eni appeared first on ostwirtschaft.de.