Kazakhstan is preparing for a historic shift in its energy sector. For the first time, the country plans to launch industrial production of hard-to-recover and unconventional gas. The project centers on the Sozak field in the Kyzylorda region — the largest deposit of its kind in the country and potentially a game changer for Kazakhstan’s gas industry, DKNews.kz reports.
Kazakh Invest and Geo Jade Petroleum Corporation have signed a memorandum under which $7.8 billion will be invested in additional exploration and development of the field. This is not just another major investment project — it marks Kazakhstan’s entry into a technologically new segment of gas production.
Up to One Trillion Cubic Meters of Potential
Confirmed unconventional gas reserves in Kazakhstan are currently estimated at around 100 billion cubic meters. However, preliminary assessments of the Sozak field suggest a far greater potential: total production could reach up to one trillion cubic meters of gas.
Photographer: Agibai Ayapbergenov/ Kazinform
The project is now at the exploration stage. Over the next year, investors plan to inject $250 million to confirm reserves. The focus is on tight gas, coalbed methane, and shale gas, which will later be processed into commercial-grade gas.
A New Direction for Kazakhstan
According to Chairman of the Board of Kazakh Invest Sultangali Kinjakkulov, the extraction of hard-to-recover and unconventional gas is an entirely new field for Kazakhstan.
“The production of hard-to-recover and unconventional gas is a new direction for Kazakhstan, as the country currently lacks such technologies. Today, only the United States and China possess them,” Kinjakkulov noted.
That is why the project is expected to involve an international consortium with Qatari and Chinese investors, as well as leading American and Chinese specialists.
Photographer: Agibai Ayapbergenov/ Kazinform
“The project will involve top American and Chinese experts in unconventional gas production. There is no environmental damage, because this type of extraction has been used in the United States for about 20 years and in China for 10–15 years. There have been no environmental problems there. On the contrary, the most advanced technologies are applied. The investor is ready — and has already committed in writing — to share these technologies,” Kinjakkulov emphasized.
Gas for the Domestic Market — and Beyond
One of the key questions is where the extracted gas will go. According to Kazakh Invest, discussions are underway to supply the entire volume to the domestic market.
“We are currently discussing with the investor that all produced gas will be supplied to the domestic market. Everything depends on pricing and the terms we agree on. A model similar to a production-sharing agreement is possible. We have also proposed creating a gas-chemical complex to produce plastics, fertilizers, and other products from gas,” Kinjakkulov explained.
This means the Sozak project could become not only a resource base, but also a foundation for developing Kazakhstan’s gas-chemical industry.
Thousands of Jobs and Local Training
The social impact of the project is also significant. According to the company, at least 90% of employees will be citizens of Kazakhstan. At the initial stage, between 1,000 and 2,000 people are expected to be hired. Once full capacity is reached, the project could create 5,000 to 7,000 jobs.
Investors have also committed to training local personnel in advanced technologies and purchasing goods and services from the domestic market.
The Largest Hard-to-Recover Gas Deposit
Chairman of the Board of Geo Jade Petroleum Corporation Chen Huanlong called Sozak the largest hard-to-recover gas field in Kazakhstan.
Photographer: Agibai Ayapbergenov/ Kazinform
“Confirmed reserves in Kazakhstan amount to 100 billion cubic meters. The Sozak field is the largest in terms of hard-to-recover reserves, and we will continue to increase our financial resources and efforts to carry out exploration and production. Of course, projects of this scale require support from Kazakhstan’s competent authorities,” he said.
He added that Kazakh Invest and the Government of Kazakhstan are currently providing full support.
“With this support, and with our experience and technologies, I am confident we will be able to implement all our plans for exploration and development of this field on time,” Chen Huanlong stressed.
Geo Jade Petroleum has been operating in Kazakhstan for more than 10 years and has already invested over $3 billion in major energy projects.
A New Era for the Gas Industry
The Sozak project has already been discussed at the highest level, including by Prime Minister Olzhas Bektenov with Geo Jade Petroleum’s leadership. If fully implemented, Sozak could position Kazakhstan among the small group of countries capable of producing unconventional gas.
For Kazakhstan, this means more than energy security and job creation. It also means access to cutting-edge technologies held by only a few nations worldwide. And Sozak may well become the starting point of a new gas era for the country.
