Three international contractors are understood to be bidding for a major engineering, procurement and construction (EPC) award at a new Kazakhstan associated gas processing facility where development is due to begin in just over one year.

KMG PetroChem, a subsidiary of Kazakhstan’s state run oil and gas holding KazMunayGaz, is seeking bids for the facility known locally as GSU. The project will be located one kilometre from the KTL-1 and KTL-2 associated gas and oil processing units at the Tengiz oilfield — the country’s largest — which is operated by Chevron-led venture Tengizchevroil.

With an estimated price tag of $2.2 billion, GSU is a key initial component of the Kazakh government's ambitions to develop several cross-linked gas processing and production projects.