Hyundai Engineering received a letter of award from Kazakhstan's QazaqGaz for the Karachaganak gas treatment facility project in western Kazakhstan, which will include a gas processing facility and related infrastructure able to process up to 5 billion cubic meters of raw gas per year at the Karachaganak complex, Seoul Economic Daily reported on June 8. Hyundai Engineering will handle design and procurement, while Italy's SICIM will participate as a construction consortium partner.
Kazakhstan has long sought domestic processing capacity for Karachaganak gas, but the most recent effort to build the plant through the Karachaganak production-sharing agreement was canceled after Karachaganak Petroleum Operating failed to reach a final investment decision. Kazakh efforts to build a domestic plant accelerated after the October 2025 drone strike on Russia's Orenburg gas processing plant, which temporarily halted or reduced the intake of Karachaganak gas, reportedly forcing Kazakhstan to cut field production by 25%-30% and creating a dispute over whether the outage qualified as force majeure.