BAKU, Azerbaijan, June 1. KMG PetroChem, a subsidiary of Kazakhstan's KazMunayGas national energy company, and Tengizchevroil JV will carry out Gas Separation Complex (GSC) project, a source at KazMunayGas told Trend .
The relevant Basic Conditions Agreement (BCA) necessary for the implementation of the project has been signed between the companies.
The construction of the GSC is planned to take place on the territory of the Tengiz field. The GSC is an infrastructure facility designed to produce ethane for use as a raw material at the polyethylene production plant.
The Basic Conditions Agreement establishes the fundamental parameters for the implementation of the GSC project, preliminary conditions for the supply of dry gas from Tengizchevroil to KMG PetroChem, provision of technical services, and other coordination matters during the construction and operation stages of the facility. All these efforts are aimed at supporting the development plans of the Republic of Kazakhstan in the petrochemical industry.
"With the signing of this document today, we have come one step closer to realizing a large-scale premium polyethylene production complex. These projects align with KazMunayGas' long-term strategic goals of diversifying our business and expanding the portfolio of products manufactured based on our available hydrocarbon resources," noted Magzum Mirzagaliyev, Chairman of the Management Board of KazMunayGas.
Meanwhile, as Tengizchevroil reported earlier this year, the volume of crude oil production at Tengiz field amounted to 7.35 million tons (58.6 billion barrels) in the first quarter of 2023.
In the reporting period, Tengizchevroil sold more than 307,000 tons of liquefied gas, 288 million cubic meters of dry gas, as well as more than 733,000 tons of sulfur.