KMG and TCO agreed to supply propane to the first gas chemical complex in Kazakhstan

10 September 2021

The Deputy Chairman of the Management Board for Oil Refining and Petrochemistry of JSC NC KazMunayGas-Chairman of the Management Board of KPI Inc. LLP Daniyar Tiessov and Tengizchevroil LLP (TCO) General Director Kevin Lyon signed a contract on the supply of propane from the Tengiz field to the polypropylene production plant in Karabatan. The Chairman of the Management Board of JSC “NC“ KazMunayGas” (KMG) Alik Aidarbayev and Managing Director of the Eurasian Business Unit of Chevron Corporation, John Baltz attended the signing ceremony.
According to the signed contract, Tengizchevroil LLP will supply feedstock to the polypropylene production plant. The annual volume of supply will be 550 thousand tons of propane, which will be delivered by rail. The propane will be processed at a propane dehydrogenation plant to produce propylene, and then propylene will be fed to polymerization unit to produce the final product of granular polypropylene.
“Receiving propane from Tengiz is the main milestone in the implementation of an important project for the country's economy. Today, the builders of the new plant are completing the project, and the commissioning works are planned for Q1, 2022. Already this year, the petrochemical complex which is under construction, will receive the first batch of propane. The cooperation between TCO and he KazMunayGas Group of companies has been ongoing for decades. And this agreement is further evidence of TCO’s commitment to a long-term and sustainable partnership,” Mr. Aidarbayev said.  

TCO’s General Director, Kevin Lyon agreed: “This is a significant milestone which will serve to strengthen the partnership between TCO and KMG in our joint efforts to support the development of the petrochemical industry. At TCO, we believe in the future of the petrochemical industry in Kazakhstan and will continue to work closely with the Ministry of Energy of the Republic of Kazakhstan and KMG on projects that will enable further industrial and economic development in the country”.
The polypropylene plant is to become the first fully digital facility in Kazakhstan. This will allow to manage all processes remotely from Atyrau. All physical work will be performed by robots, and operators will control the entire process remotely, using “smart” digital video surveillance.
It is also important to emphasize that the plant is eco-friendly and equipped with the closed water-cooling cycle, so that all wastewater is treated, demineralized, and returned to the plant as a fire-fighting water. This process reduces the total water consumption.