Hyundai Engineering Signs Implementation Agreement for Kazakhstan Gas Processing Facility Project

[Financial News] Hyundai Engineering has laid the groundwork for a major gas processing facility project in Kazakhstan.
Hyundai Engineering CEO Woo-Jeong Joo said on the 15th that the company had signed an Implementation Agreement with Kazakhstan’s state-owned gas company National Company QazaqGaz to pursue the Karachaganak Gas Processing Plant (KGPP) project. With the agreement, Hyundai Engineering has entered all three of Central Asia’s major energy-resource countries: Uzbekistan, Turkmenistan, and Kazakhstan.
The signing ceremony took place at the Korea–Kazakhstan Business Roundtable, held during the Korea–Central Asia Summit. Prime Minister Han Seong-sook attended the event, while the ceremony was held in the presence of Kazakhstan President Kassym-Jomart Tokayev. Key officials from both companies, including Hyundai Engineering CEO Woo-Jeong Joo and National Company QazaqGaz Chairman Alibek Zhamauov, attended the signing.
The agreement was designed to confirm the parties’ shared interests and establish the direction and principles of cooperation for the successful implementation of the Karachaganak Gas Processing Plant project, which will process 5 billion cubic meters of feed gas annually.
The project will be carried out by a consortium formed by Hyundai Engineering and the Kazakhstan-based entity of Italian EPC company SICIM. Hyundai Engineering, the lead contractor, will handle engineering and procurement, while construction and commissioning will be conducted in cooperation with SICIM’s local entity. The two companies agreed to maintain close cooperation from the project development stage through the signing of the final EPC contract.
Hyundai Engineering received a Letter of Award (LOA) for the project from National Company QazaqGaz in May. The signing of the agreement secures continuity from the initial design stage through the main EPC contract, which the company expects will accelerate negotiations for the final contract. The signing also reaffirmed the client’s commitment to the project and established a foundation of government-level trust, as officials from both governments and companies participated in the ceremony.
Hyundai Engineering has built its project management capabilities by carrying out major plant projects in Central Asia, including Uzbekistan and Turkmenistan. Through its participation in this project, the company will establish a business base in all three of Central Asia’s major energy-resource countries and plans to expand opportunities to win additional orders in the region’s energy infrastructure market.
A Hyundai Engineering official said, "The signing of this Implementation Agreement is an important milestone signaling the full-scale launch of the Kazakhstan gas infrastructure project." The official added, "Based on our extensive project experience and technological expertise accumulated in Central Asia, we will successfully carry out the project and further expand our influence in the global energy infrastructure market."

[email protected] Jung Kyung-soo Reporter