Orenburg gas processing plant to supply LPG to Kazakhstan in 2024 - Kazakh Ministry of Energy

ASTANA. Nov 20 (Interfax) - At a briefing in Astana, Kazakhstan's Deputy Minister of Energy Alibek Zhamauov announced that, starting next year, up to 90,000 tonnes of liquefied petroleum gas will be shipped annually from the Orenburg gas processing plant to meet Kazakhstan's needs.

"In order to address the liquefied petroleum gas shortage in the country, we held negotiations with KazRosGaz. They are willing to help by redirecting the required LPG volume from the Orenburg plant starting next year," Zhamauov said.

Initial discussions involve supplying "up to 90,000 tonnes of LPG per year," he said.

"We plan to reach a one-year agreement at first and assess the situation after that," he said.

The Deputy Minister noted that deliveries would commence in January 2024.

"We will monitor the situation. If our domestic resources can meet the demand and resolve the shortage, we will halt supplies from Orenburg. However, if a deficit persists in the market, we will continue until the issue is resolved," he said.

Gazprom and KazMunayGas have maintained a partnership since 2002 via the KazRosGaz joint venture, with the KazMunayGas share managed by QazaqGaz. KazRosGaz was established to acquire gas from the Karachaganak field, process it at the Orenburg gas processing plant, and distribute it to consumers in both Kazakhstan and Russia.

A long-term gas purchase and sale agreement for the Karachaganak field was initially signed by KPO and KazRosGaz LLP in 2007. This agreement was extended in 2015 to run through 2038, with an annual volume of up to 9 bcm.