Kashagan Field

Yes, we know there were some problems recently, but is it really connected to it or there is some other reasons?

Yeah, in fact, all the three fields of Kazakhstan, so Tengiz, Karachaganak and Kashagan have at various points through the last year experienced some kind of problem.

So in Tengiz, there was a fire in January, then there was some other disruption in Later on, a few months later, Karachaganag, that's an interesting story because there actually the issue is that, okay, Kazakhstan produces all this gas, but it does not have, and this is an important part of the story, it just doesn't have the capacity to process it all.

So what Karachaganag used to do is send a lot of the gas to Oryanburg, which is in Russia, across the border.

So as a result, Karachaganak had to reduce production.

And so it didn't have all this gas, which you needed to send to Russia.

And then Kashagan, which maybe is the field that most people are familiar with, that in the meantime, is supposed to be developing its own gas processing plant.

Typically, you'll see two types of figures when it comes to gas production in Kazakhstan, you would have overall gas production, and then marketable gas.

Routine flaring has been banned since the mid-2000s, and the country cut flared volumes by more than seventy percent between 2012 and 2022, the largest reduction of any producer in that period, underwritten by the deep pockets of the international majors operating its largest fields.

Chevron, Eni, Shell, and partners at Tengiz, Karachaganak, and Kashagan, paired with a domestic gas market built to make associated gas recovery pay for itself.

Mexico already has a comparable mandate, which makes the lesson sharper.

Since 2016, all operators, state and private, must sustain at least ninety-eight percent utilization of associated natural gas.

Routine flaring has been banned since the mid-2000s, and the country cut flared volumes by more than 70% between 2012 and 2022, the largest reduction of any producer in that period, underwritten by the deep pockets of the international majors operating its largest fields.

Chevron, Eni, Shell, and partners at Tangiz, Karachaganak, and Kashagan, paired with a domestic gas market built to make associated gas recovery pay for itself.

Mexico already has a comparable mandate, which makes the lesson sharper.

Since 2016, all operators, state and private, must sustain at least 98% utilization of associated natural gas.