06:52 AM EDT, 07/18/2024 (MT Newswires) -- Condor Energies ( CNPRF ) late on Wednesday said it has signed its first liquefied natural gas framework agreement for the use of LNG to fuel Kazakhstan's rail locomotives.

Other parties to the agreement are Kazakhstan Temir Zholy National Company (KTZ), the national railway operator of Kazakhstan, and Wabtec, a U.S.-based locomotive manufacturer with facilities in Kazakhstan.

KTZ and Wabtec previously signed a memorandum of understanding that included modernization work to retrofit KTZ's mainline locomotive fleet for LNG usage and incorporate the fuel into new build locomotives.

The LNG framework agreement introduces Condor into the locomotive fleet modernization strategy as the LNG supplier and distributor. It also provides a detailed framework for coordination to ensure Condor's LNG production volumes coincide with delivery of new and converted LNG-powered rail locomotives from Wabtec.

The use of LNG in locomotives instead of diesel is expected to reduce costs and increase the speed of railing freight across Kazakhstan by increasing operating ranges and reducing transit times. It will also support the Kazakh government's goal to achieve carbon neutrality by 2060.

The agreement is also expected to supply a stable and more environmentally friendly fuel source for the Transcaspian International Transport Route expansion, said to be the shortest and fastest transit corridor for moving freight between Asia and Europe.

Condor has completed front-end engineering for its first modular LNG facility, which is designed to produce 120,000 metric tons of LNG per year. Detailed engineering is expected to begin shortly.

Phase 1 of the first facility is expected to commence LNG production in mid-2026.