Tengizchevroil LLP (TCO) and KMG PetroChem LLP, a subsidiary of NC KazMunayGas JSC, have entered into a Dry Gas Purchase and Sale Agreement.

Source: Tengizchevroil

Under this agreement, TCO will provide up to 9 billion cubic meters of dry gas annually to a gas processing facility in the Atyrau Oblast. It's worth noting that TCO and KMG PetroChem previously signed a Heads of Agreement regarding the "Gas Separation Complex" project.

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.

As per the revised terms of the agreement, the Gas Separation Complex is anticipated to recover at least 98% of ethane from the dry gas. This ethane will serve as feedstock for the polyethylene production plant in Atyrau Oblast, Karabatan, which has a capacity of 1.25 million tons per year.

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

TCO remains a key player in addressing the growing gas demand in the Republic of Kazakhstan, contributing to both the country's petrochemical sector and domestic needs. All sales gas produced by TCO is directed to the domestic market.