ASTANA, Kazakhstan, December 11. KMG PetroChem, a subsidiary of KazMunayGas, and Tengizchevroil have signed an updated contract for the purchase and sale of dry gas, which includes additional enhanced guarantees for raw material supply, Trend reports.
According to an official source from KazMunayGas, Tengizchevroil will supply up to 9 billion cubic meters of dry gas annually to the gas processing plant in the Atyrau region. The ethane extracted from the dry gas will be used as raw material at the polyethylene production plant (the "Polyethylene" project) in the Atyrau region, with a capacity of 1.25 million tons per year.
It is worth noting that such projects are being implemented for the first time in Kazakhstan. The Gas Separation Complex (GSC) project is expected to extract at least 98 percent of the ethane from the dry gas, and the polyethylene plant will produce premium-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.
To note, Tengizchevroil (TCO) is a Kazakhstani joint venture engaged in the development, extraction, and sale of crude oil, liquefied gas, dry gas, and sulfur. TCO uses modern technologies and operates in compliance with global safety and environmental protection standards. TCO was established in April 1993 as a joint venture between the Republic of Kazakhstan and Chevron Corporation. The company's partners include Chevron (50 percent), KazMunayGas (20 percent), ExxonMobil Kazakhstan Ventures Inc. (25 percent), and Lukoil (5 percent).
