Tengizchevroil reroutes LPG exports to bypass Ukraine
Kazakhstan's Chevron-led Tengizchevroil (TCO) plans to increase exports of liquefied petroleum gas (LPG) through the Georgian port of Batumi and may resume shipments to Poland, according to Refinitiv Eikon data and traders on Wednesday.
TCO has been shipping most of its LPG to Ukraine and to the ports of Temryuk and Taman in the south of Russia, but what Moscow calls a "special military operation" in Ukraine has limited possibilities for such shipments.
TCO declined to comment on commercial matters.
TCO's production of propane and butane fell to an average of 1,580 tpd during the first 14 days of March from 4,200 tpd in the first half of February, traders familiar with the production data said.
An embargo on rail shipments of all goods including LPG to Ukraine was introduced on Feb. 24 by the Russian Railways. LPG is supplied from Kazakhstan to Ukraine via Russia.
LPG supplies to the port of Taman were suspended due to overstocking. Supplies via Temryuk port in the Sea of Azov were also suspended by Russia until further notice.
TCO rerouted some of its LPG supplies to the port of Batumi in March, the rail data showed. The company will supply 19,500 t of the product to the port this month compared to an average volume of 8,000 t in January-February, according to rail data in Refinitiv Eikon.
The traders said that TCO, after a three-year break, may resume the supply of its LPG to Poland. It was not clear if supplies may start this month.
TCO exports in 2021 averaged 110,000 t of LPG per month, of which 40,000 t were supplied to Ukraine. The company also shipped about 20,000 t each through the ports of Taman and Temryuk per month, according to rail data in Refinitiv Eikon.
TCO is owned by Chevron (50%), ExxonMobil (25%), KMG (20%) and LukArko (5%).
(Editing by Mark Potter)
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