Condor Energies, a Canadian energy transition company, has announced the signing of its first Liquefied Natural Gas (LNG) framework agreement in Kazakhstan. This deal aims to fuel Kazakhstan’s rail locomotives with LNG, marking a step in the country's rail modernization efforts.
The agreement, signed with Kazakhstan Temir Zholy National Company (KTZ) and Wabtec Corporation (WAB), outlines a strategic partnership to retrofit KTZ’s mainline locomotive fleet for LNG usage and incorporate LNG into new locomotives. Condor will serve as the supplier and distributor of LNG under this framework.
The collaborative effort between Condor, KTZ, and Wabtec will synchronize LNG production with the delivery of new and converted LNG-powered rail locomotives. A dedicated working group from each organization will oversee the performance indicators for this initiative.
The switch from diesel to LNG is anticipated to reduce costs, enhance rail freight speeds across Kazakhstan, and lower fuel and maintenance expenses. Additionally, the move supports Kazakhstan’s goal of achieving carbon neutrality by 2060 by significantly cutting greenhouse gas emissions.
The agreement is pivotal for the expansion of the Trans-Caspian International Transport Route (TITR), which provides an efficient transit corridor for freight between Asia and Europe. Investments are being made to improve TITR infrastructure, including expanding the rail network and enhancing port capacities.
Condor is advancing its first modular LNG facility near Aktobe, Kazakhstan, with construction set to begin soon. The facility, utilizing advanced technology from the U.S. Department of Energy, will produce 120,000 metric tons of LNG annually, equating to 450,000 liters of diesel per day. Phase 1 of this project is slated to start LNG production in mid-2026, with a stable feed gas supply already secured.
“This Agreement is a milestone in our strategic plan to advance LNG use in Kazakhstan’s transportation sector. The close cooperation will ensure timely LNG production and delivery, supporting Kazakhstan’s energy transition and growth. The TITR’s role in facilitating freight transport between Asia and Europe further highlights the growing demand for LNG,” Don Streu, President and CEO of Condor, remarked.
Earlier Condor Energies announced the start of a multi-well workover campaign for the eight gas-condensate fields it operates in Uzbekistan.
Condor Energies listed on the TSX, focuses on energy transition projects in Central Asia, including producing gas assets and constructing LNG facilities. The company aims to support environmental sustainability while growing reserves, production, and cash flow.
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