Canada’s Condor Energies said it had received a natural gas allocation from the government of Kazakhstan for the company’s first modular liquefied natural gas (LNG) production facility.
The feed gas will be liquefied to produce up to 350 tonnes per day (210,000 gallons per day) of LNG, which can fuel about 125 rail locomotives or 215 large mine haul trucks, according to Condor.
Calgary-based and Toronto-listed Condor claims the CO2 emission reductions associated with using this LNG volume to displace diesel fuel equates to removing over 31,000 cars from service annually.
Besides securing feed gas, the company has also acquired 12 hectares of industrial land where the first modular LNG facility will be constructed.
Front-end engineering and design is complete and detailed engineering would start shortly, Condor said.
The company said that discussions are underway with end-users to confirm LNG volume commitments and the company is reviewing project funding alternatives before proceeding with construction.
Condor said its LNG initiative fully supports the government’s strategy to materially expand the Trans-Caspian International Transport Route, which links a major Asian trade route with Europe.
Moreover, LNG produced by the plant can be used as fuel as a substitute for diesel to address the increased usage of rail locomotives and transport trucks between China and the Caspian Sea, and the marine vessels used to cross the Caspian Sea, it said.
Back in 2021, Condor signed a cooperation deal with the Kazakhstan national railroad operator, JSC NC Kazakhstan Temir Zholy (KTZ).
Condor added it is “working closely” with Kazakhstan’s national railway and marine companies to implement an LNG solution in 2025.