KMG PetroChem and KPI Inc. Agree on Key Terms for Propane Transportation

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KMG PetroChem LLP and Kazakhstan Petrochemical Industries Inc. (KPI Inc.) have signed a Term Sheet outlining the key terms for propane transportation.



The agreement defines the main commercial and technical parameters of cooperation between the parties regarding the transportation of propane from the Tengiz field to the polypropylene production plant. It will serve as the basis for a future long-term contract.

The document was signed as part of KMG PetroChem’s infrastructure project to construct trunk pipelines for the transportation of ethane and propane. KMG PetroChem is the project operator, which provides for the construction of two parallel pipelines with a total length of approximately 210 km. The designed throughput capacity is up to 1.6 million tonnes of ethane and up to 1 million tonnes of propane annually, taking into account volumes produced by both the GPP and TCO. Commissioning is scheduled for 2028.