KMG PetroChem and Tengizchevroil agree on the supply of dry gas to Gas Processing Plant in Atyrau oblast

On December 11, 2024, KMG PetroChem LLP, a subsidiary of NC KazMunayGas JSC, and Tengizchevroil LLP (TCO) signed a Dry Gas Purchase and Sale Agreement, which includes additional improved guarantees for the supply of raw materials. In particular, TCO will supply up to 9 billion m3 of dry gas per year to a gas processing plant in the Atyrau region. Whilst, extracted ethane from the dry gas will serve as feedstock for the polyethylene production plant (Polyethylene Project in Atyrau Oblast), with a capacity of 1.25 million tons per year.

Both the related Gas Separation Complex (GSC) and polyethylene projects are not only anchor projects but also unique for the country in terms of scale and technology. This is the first time that projects of this nature have been implemented in Kazakhstan. The Gas Separation Complex project is expected to recover at least 98% of ethane from dry gas and the polyethylene plant is expected to produce high quality products. 

“Thanks to the revision of a number of conditions of the previously signed agreement, we are one step closer to implementing strategically important oil and gas chemical projects for Kazakhstan - the Gas Separation Complex and polyethylene plant. These projects are primarily aimed at furthering the industrial and economic development of the country,”- said Askhat Khassenov, Chairman of the Management Board of KazMunayGas.

“TCO is a key supporter of the Republic of Kazakhstan’s energy industry, including its strategy to develop its petrochemical industry. The signing of the updated dry gas supply agreement for the Gas Separation Complex project is a significant milestone for Kazakhstan’s petrochemical industry, and this is the third project in which TCO will be a major supplier of related feedstocks,” - said Kevin Lyon, General Director of Tengizchevroil LLP.

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KMG PetroChem LLP (formerly KLPE LLP) is a 100% subsidiary of NC KazMunayGas JSC. The company implements and coordinates projects in the field of oil and gas chemistry within the KMG Group. KMG PetroChem's activities include the development of a projected polyethylene plant and Gas Separation Complex, as well as other oil and gas chemical projects.

Tengizchevroil LLP (TCO) is a Kazakhstani partnership that develops, produces, and markets crude oil, LPG, dry gas, and sulfur. TCO implements modern technologies and conducts its operations in accordance with world-class safety and environmental standards. In April 1993, TCO was formed between the Republic of Kazakhstan and Chevron Corporation. Partners are Chevron, 50 percent; KazMunaiGas NC JSC, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent and Lukoil, 5 percent.