Kazakhstan is actively pursuing Green House Gas (“GHG”) reductions while continuing to monetize its vast mineral resources. A National GHG Emission Quota Allocation Plan was established in 2021, with a limit of 160 million tonnes of allowable CO2 emissions per year. The President has publicly committed to carbon neutrality by 2060.
Accordingly, Kazakhstan is seeking a means to limit diesel fuel usage as part of its energy transition planning.
Liquified natural gas (“LNG”) has been proven to efficiently and cost-effectively replace diesel fuel usage in mining, railroad and long-haul transport applications. However, no LNG production currently exists in Kazakhstan
Kazakhstan offers a politically stable environment with a well-defined and practiced rule-of-law.
Condor is establishing Kazakhstan’s first LNG facilities and will produce, distribute, and sell LNG to offset industrial diesel fuel usage. Near term LNG applications include mine haul trucks, train locomotives, buses, road transport fleets and other heavy equipment.
Building a multimillion tonne per year ‘conventional’ LNG facility would be cost, time and financially unattractive due to the country’s vast size and lack of an established market. Instead, Condor will construct lower cost ‘modular’ LNG facilities which have a significantly smaller footprint to ‘localize’ LNG production and distribution. Modular facilities are more efficient and cost effective to service numerous industries spread over a large geographic region and can also be built much faster, taking only 12 to 18 months from design to first production.
The Company’s modular LNG solution is planned to be executed in three main Phases (with multiple sub-phases), taking advantage of scalability to address the diverse end-user market demands and physical locations. When all phases are complete, up to 600,000 tonnes of LNG could be produced annually, displacing 670,000 tonnes of diesel fuel and reducing CO2 emissions by over 250,000 tonnes annually.