LLP KMG PetroChem and LLP Kazakhstan Petrochemical Industries Inc. (KPI Inc.) have signed a Term Sheet Agreement for the transportation of propane.

Source: CaspianLife

The document was signed by Diaz Diyanov, Deputy Chairman of the Management Board for Business Development at KMG PetroChem, and Damir Ashimov, General Director of KPI Inc.

This agreement outlines the key commercial and technical parameters of cooperation between the parties for the transportation of propane from the Tengiz field to the polypropylene production plant. It will form the basis for a future long-term contract.

^{According to KMG PetroChem’s press service}

The agreement is part of KMG PetroChem’s infrastructure project for the construction of main pipelines for the transportation of ethane and propane. The company is the operator of the project, which envisions the installation of two parallel pipelines with a total length of approximately 210 km. The planned capacity is up to 1.6 million tonnes of ethane and up to 1 million tonnes of propane per year (including volumes produced by both GPP and TCO). Commissioning is scheduled for 2028.

Background:

LLP KMG PetroChem is a 100% subsidiary of JSC NC KazMunayGas (KMG). The company implements and coordinates petrochemical projects within the KMG group. Its scope includes the planned propane and ethane pipelines, a polyethylene production plant, a gas separation complex (GPP), and other petrochemical initiatives (urea, PETF).

LLP Kazakhstan Petrochemical Industries Inc. (KPI) is also a subsidiary of JSC NC KazMunayGas. The company operates a polypropylene production plant, the first project in Kazakhstan to process feedstock from the Tengiz field. The plant currently produces thirteen grades of polypropylene used in construction, medicine, food, and textile industries. In total, the product portfolio now includes fifteen grades, with two undergoing homologation — a compliance check to ensure the product meets the technological and technical requirements of end users.