EBD Finances Project to Utilize Associated Gas at Kazakh Oilfield

The Eurasian Development Bank will finance a project to build a capacity for utilizing associated gas at the Kenlyk oilfield in Kyzylorda Oblast, Kazakhstan.

In accordance with a loan agreement between the EDB and Kazfrac LLP, the Bank will provide $25 million through an eight-year non-revolving credit facility.

The project will enable efficient utilization and processing of associated gas instead of its popping. The resulting chemical products (liquefied propane-butane and natural gas gasoline) are widely used as fuel by utility companies and as raw material for pyrolysis by petrochemical and organic synthesis facilities.

This project is in line with the EDB strategy, as it addresses the issues of efficient use of natural resources, environmental protection and improving the environmental situation. The project will contribute to the sustainable development and diversification of Kazakhstan’s economy by assisting the development of the chemical industry. New jobs will be created, and tax revenue will be generated. As is expected, the products will mainly be exported to neighbouring and distant markets.