Tengizchevroil LLP (TCO) has extended the memorandum on annual supplies of liquefied petroleum gas (LPG) to the domestic market of Kazakhstan, as reported by a correspondent from the Kapital.kz business information center, citing the press service of the Ministry of Energy.
In 2025, TCO will supply 240,000 tons of LPG to the market.
“First of all, it is important to note that liquefied petroleum gas is a valuable hydrocarbon raw material used worldwide not only as fuel for vehicles but also as a rich basis for the development of oil and gas chemistry. The conclusion of this agreement is a significant step in meeting the domestic needs of the republic for liquefied petroleum gas. Guaranteed gas supplies from our partner, TCO, as one of the producers of liquefied petroleum gas in the Republic of Kazakhstan, will help reduce the level of gas shortages in the market and create favorable conditions for consumers of this product,” stated Deputy Minister of Energy Alibek Zhamauov.
“TCO remains one of the key suppliers of commercial gas to the domestic market and continues to collaborate with Kazakhstan to explore potential opportunities in this strategically important area for the country. We will continue to support the goals of the Ministry of Energy and strive to contribute to the industrial and economic development of the country,” noted TCO General Director Kevin Lyon.
Over the past few years, TCO has agreed upon and signed documents for the supply of propane raw materials for KPI, butane for the “Butadiene” project, and ethane for the “Polyethylene” project.
Previously, TCO General Director Kevin Lyon stated that the terms of the contract concluded by the Tengizchevroil consortium with the Kazakh authorities are fair, and the company is not bound by a production sharing agreement with the Republic of Kazakhstan.
President Kassym-Jomart Tokayev instructed the government to intensify negotiations regarding the extension of production sharing contracts on updated, favorable terms for the country. Prime Minister Olzhas Bektanov announced that plans are in place to extract shale oil in Kazakhstan.
On January 24, 2025, as part of the Future Expansion Project (PEP), Tengizchevroil LLP (TCO) began extracting crude oil at the new third-generation plant (ZTP) at the Tengiz field. In the coming months, TCO plans to increase the total volume of crude oil production at Tengiz by an additional 12 million tons per year. After all production facilities reach full capacity, the total volume of crude oil production is expected to reach approximately 40 million tons per year.