The largest producer of liquefied gas in Kazakhstan Tengizchevroil (TCO) has notified Ukrainian buyers that it will reduce the volume of supplies of liquefied petroleum gas (LPG) under long-term contracts in 2022 by 30-40% compared to the current year, to 19-22 thousand . tons per month, reported in Argus with reference to the information received from market participants.
The decrease in supplies next year is due to the planned commissioning of a polypropylene plant with a capacity of 500 thousand tons per year in the Atyrau region (Kazakhstan). This project is being implemented by Kazakhstan Petrochemical Industries (KPI), and TCO will provide the company with propane in the amount of up to 550 thousand tons per year.
At the same time, in Kazakhstan itself, the authorities of the city of Nur-Sultan held negotiations with Tengizchevroil on the allocation of an additional 2.3 thousand tons of gas to the city, the administration said in a statement released on Wednesday.
They emphasized that due to the gas shortage that has arisen, “first of all, the supply of fuel will be made to gas distribution plants and boiler houses, and only after that - to gas stations.”
Many Ukrainian traders believe that they will be able to compensate for the falling volumes of TCO due to the growth of spot supplies from Russia and an increase in sea imports of liquefied petroleum gas.