KMG and TCO Agree to Supply Propane to Kazakhstan’s First Gas Chemical Complex
On Friday, 10 September, Daniyar Tiyessov, Deputy Chairman of JSC NC “KazMunayGas” Management Board for Oil Refining and Oil Chemistry, Chairman of KPI Inc. LLP Management Board, and Kevin Lyon, General Director of Tengizchevroil LLP, signed an agreement for the supply of propane from Tengiz field to the polypropylene plant in Karabatan.
The agreement signing ceremony was attended by Alik Aidarbayev, Chairman of KMG’s Management Board, and John Baltz, Managing Director of Chevron’s Eurasian Business Unit.
Let us recall that the construction of one of the largest plants over the years of the country’s independence commenced pursuant to the instruction of Yelbassy Nursultan Nazarbayev, the First President of the Republic of Kazakhstan. To date, the overall progress of the project has exceeded 90%, mechanical completion is expected at the end of this year.
According to the signed agreement, Tengizchevroil will supply raw materials to the polypropylene plant. The annual supplies will amount to 550 thousand tonnes of propane fraction. Gas will be supplied by rail. At the plant, the raw materials will be processed by the propane dehydrogenation unit to produce propylene, and further, the finished product — granular polypropylene — will be received at the polymerisation unit.
“Getting propane from Tengiz is a key aspect in implementing the project that is important for our country’s economy. The gas chemical complex under construction will accept the first batch of raw materials as early as this year. Currently, the builders of the new plant are entering the final stretch, and commissioning is scheduled for the first quarter of 2022. Cooperation between KMG and TCO goes back decades, and the agreement we signed today is another evidence of our commitment to a long-term and sustainable partnership,” Alik Aidarbayev said.
Kevin Lyon, General Director of Tengizchevroil, said: “This is an important stage in the partnership between TCO and KMG, which serves to strengthen our joint efforts to support the development of Kazakhstan’s petrochemical industry. TCO believes in the future of the republic’s petrochemical industry. We will keep on working closely with the Ministry of Energy and KMG under the projects that will contribute to the further industrial and economic development of the country.”
The polypropylene plant is to become the first fully digital facility in Kazakhstan. This will enable remote control of all processes at the plant from the city of Atyrau. All physical labour will be performed by robots, and operators will steer the process through smart digital video surveillance.
Of further note is the environmental friendliness of the facility that will use a closed water cooling cycle. All waste water from the plant will be treated and returned in the form of desalted, demineralised fire-fighting water, which will significantly reduce the overall water consumption.