Hyundai Engineering signs implementation agreement with Kazakhstan state gas firm for Karachaganak processing facility

Hyundai Engineering announced Tuesday that it has signed a project implementation agreement with Kazakhstan's state gas company QazaqGaz to advance the Karachaganak gas processing facility project.

The agreement was designed to confirm the mutual interests of the parties and to define the direction and principles of cooperation for the successful execution of the Karachaganak gas processing facility, which will handle 5 billion cubic meters of raw gas annually. The signing further solidifies the partnership between Hyundai Engineering and QazaqGaz for the large-scale project.

The signing ceremony took place during the Korea-Kazakhstan Business Roundtable, held on the sidelines of the first Korea-Central Asia Summit, with Prime Minister Han Seong-sook in attendance. Kazakhstan President Kassym-Jomart Tokayev presided over the ceremony, which was attended by Hyundai Engineering CEO Joo Woo-jung, QazaqGaz Chairman Alibek Zhamauov and other senior officials from both companies, who reaffirmed their commitment to the project's successful execution.

The project will be carried out by a consortium of Hyundai Engineering and the Kazakhstan subsidiary of Italian engineering, procurement and construction firm SICIM. As the consortium leader, Hyundai Engineering will handle design and procurement, while construction and commissioning will be conducted in cooperation with SICIM's local entity. The two companies plan to maintain close collaboration from the project development stage through to the signing of the final EPC contract.

The agreement is particularly significant in that it reaffirmed QazaqGaz's commitment to the project while being concluded in the presence of senior government and business officials from both countries, securing a foundation of sustained government-level support and trust.

Hyundai Engineering received a letter of award from QazaqGaz for the project in May. The implementation agreement is expected to give fresh momentum to negotiations toward the final contract by securing continuity from the early design phase through to the full EPC agreement.

The achievement reflects Hyundai Engineering's world-class technical expertise and project execution capabilities in the gas processing plant sector. The company has built a strong track record in large-scale plant projects across Central Asia, including in Uzbekistan and Turkmenistan.

With this project, Hyundai Engineering has now established a presence in all three of Central Asia's major energy-resource countries — Uzbekistan, Turkmenistan and Kazakhstan. The company plans to consolidate its position as a leading plant partner in the region and pursue additional opportunities in the Central Asian energy infrastructure market.

"The signing of this project implementation agreement marks an important milestone in the full-scale advancement of Kazakhstan's gas infrastructure development," a Hyundai Engineering official said. "We will draw on our extensive experience and technical capabilities accumulated across Central Asia to successfully execute this project and further expand our presence in the global energy infrastructure market."

According to global market research firm Fortune Business Insights, the global gas processing facility market is valued at approximately $6.09 billion this year and is projected to grow at a compound annual rate of 7.1 percent to reach approximately $10.55 billion by 2034, driven by rising demand for clean energy.