Chinese Energy Giant Backs $7.8bn Drive to Unlock Kazakhstan’s Largest Gas Field
A Chinese energy company is set to spearhead the development of Kazakhstan’s largest unconventional gas reserves, marking a major turning point for the country’s energy sector.
Kazakhstan has unveiled plans to enter the unconventional gas industry for the first time through the massive Sozak field in the Kyzylorda region, The Caspian Post reports, citing Kazakh media.
A memorandum of understanding has been signed between Kazakh Invest and Geo-Jade Petroleum Corporation to support investments worth $7.8 billion for the exploration and development of the field.
Although Kazakhstan’s proven unconventional gas reserves currently stand at about 100 billion cubic meters, early estimates indicate that production at the Sozak field alone could reach as much as one trillion cubic meters — a potential game changer for the national gas industry.
Sultangali Kinzhakulov, Chairman of Kazakh Invest, said the project will be carried out by an international consortium involving Chinese and Qatari investors. The initiative is now in the exploration phase, with $250 million planned for 2026 to confirm reserves, including tight gas, coalbed methane, and shale gas, before progressing to commercial extraction.
He added that developing hard-to-recover and unconventional gas is a new frontier for Kazakhstan, which currently lacks advanced technologies in this area, unlike global leaders such as the United States and China.
Kazakh Invest highlighted the project’s strong social impact, noting that at least 90 per cent of the workforce will be local. The development is expected to generate up to 2,000 jobs initially, rising to around 7,000 at full production capacity. Investors have also pledged to train local specialists and prioritize domestic suppliers.
Addressing environmental concerns, Kinzhakulov said the technologies to be used are proven safe and have been successfully deployed for years in the U.S. and China.
Geo-Jade Petroleum Corporation Chairman Huanlong Chen said the company is ready to scale up financing and operations for the Sozak field, while working closely with Kazakhstan’s authorities. He added that Geo-Jade has already invested nearly $3 billion in major Kazakh energy projects over the past decade.
Kazakhstan and China have also begun work on expanding the Shymkent Oil Refinery, reflecting the deepening scope of bilateral energy cooperation.
