nCa Report
A Qatar-based investor has finalized agreements with Kazakhstan’s national gas company and government to undertake seven major energy projects, including a second natural gas pipeline that will boost exports to China and supply gas to energy-deficient regions across the Central Asian country.
UCC Holding, a subsidiary of Qatar’s Power International Holding, signed contracts in February 2024 during a high-profile ceremony witnessed by Qatar’s Amir Sheikh Tamim bin Hamad Al-Thani and Kazakhstan’s President Kassym-Jomart Tokayev. The agreements, valued at approximately $11 billion, mark a significant deepening of energy cooperation between the two nations.
Major Pipeline Expansion
The centerpiece of the collaboration is the construction of the second line of the Beineu-Bozoi-Shymkent (BBS) gas pipeline, a critical infrastructure project designed to ensure Kazakhstan’s energy security. The expansion will facilitate gas supply to Kazakhstan’s southern, central, and northern regions while preserving the country’s export capacity to China through the Central Asia-China Gas Pipeline.
The BBS pipeline expansion represents a major undertaking, with plans for approximately 1,600 kilometers of pipeline and six compressor stations. The project is expected to require investment exceeding $2 billion and will strengthen Kazakhstan’s position as a regional energy hub.
Comprehensive Energy Development
Under the two main contracts, UCC Holding will execute multiple projects:
Contract with QazaqGaz:
- Construction of two gas processing plants with capacities of one billion and 2.5 billion cubic meters per year
- A new compressor station (CS-14) and main gas pipeline from CS-14 to Kostanay
- The second line of the Beineu-Bozoi-Shymkent gas pipeline
Contract with Kazakhstan’s Ministry of Energy:
- A combined cycle gas turbine (CCGT) power plant with a total capacity of approximately 1,100 megawatts in the Kyzylorda region
- A memorandum of understanding for a gas treatment plant with capacity of six billion cubic meters at the Kashagan field (Phase 2B)
Strategic Importance
The Aktobe-Kostanay pipeline project is particularly significant for regional development, as it will bring gasification to the Kostanay region and its industrial facilities for the first time. The gas processing plants at the Kashagan field will capture associated gas from one of Kazakhstan’s largest offshore oil fields, adding valuable feedstock to the national gas network.
Kazakhstan’s Energy Minister Almassadam Satkaliyev expressed satisfaction with the Qatari investment, noting that it would help grow the economy, diversify financing sources, and benefit the Kazakh community. He pledged to take all necessary steps to facilitate the work of Qatari companies in Kazakhstan.
Local Partnership Emphasis
UCC Holding’s Managing Director Amer Mahassen emphasized the importance of partnerships with local contractors during a May meeting with Kazakh energy officials and business leaders. “The success of such projects heavily relies on local contractors, who bring profound market knowledge and extensive experience,” Mahassen said. “We count on your support and are ready to collaborate to achieve our common goals.”
Prime Minister Olzhas Bektenov underscored the importance of expanding local content in implementing the projects, ensuring that Kazakh companies and workers benefit from the large-scale energy development.
Timeline and Investment Climate
Mohammed Moutaz Al-Khayyat, Chairman of UCC Holding, praised Kazakhstan’s investment environment and thanked Qatar’s Amir for supporting the Qatari private sector’s international expansion. His brother, Ramez Al-Khayyat, President of UCC Holding, said the company looked forward to commencing work during the second half of 2024.
“The investment environment in Kazakhstan enjoys many advantages, especially in the energy sector,” said Ramez Al-Khayyat. “This signing is the result of discussions that have taken place in recent months in Qatar and Kazakhstan.”
The projects reached a consensus stage in May 2024 during a meeting of Kazakhstan’s Energy Council, with implementation expected to begin soon. Final agreements were anticipated to be concluded within two months of the February signing ceremony.
UCC Holding, recently ranked number one on Construction Week’s 2025 Power 150 list of top contractors, brings significant expertise to Kazakhstan’s ambitious energy infrastructure expansion. The company confirmed in December 2024 that it would deliver the EPC (engineering, procurement, and construction) contract for the BBS pipeline expansion.
The cooperation between Qatar and Kazakhstan represents a strategic partnership that combines Qatari investment capital and construction expertise with Kazakhstan’s vast energy resources and strategic location at the crossroads of Central Asian energy routes to China and other regional markets. /// nCa, 30 October 2025