Kazrosgaz, a joint venture (JV) between Russia’s Gazprom and Kazakhstan’s KazMunayGas, has suspended production and supplies of liquefied petroleum gas (LPG) from Russia’s Orenburg gas processing plant for this year.
This suspension is attributed to EU sanctions on imports of Russian propane and propane-butane, impacting the JV’s operations, reported Reuters, citing sources.
Kazrosgaz typically processes Kazakhstan’s raw natural gas from the Karachaganak field at the Orenburg plant in Russia.
The LPG produced is usually sold to Europe through trading companies.
However, the EU’s ban on imports of Russian propane and propane-butane, effective from 19 December last year, has disrupted these supplies.
Sources indicate that the Orenburg plant has not produced or exported any LPG from Kazakh gas so far this year, the report said.
In 2024, Kazrosgaz sold approximately 15,000 tonnes (t) of LPG per month to countries including Afghanistan, Poland and Latvia.
A source familiar with the matter was quoted by the news agency as saying: “Volumes are not being produced, there is no final decision on further operations.”
Media representatives for Kazrosgaz, the Kazakh Ministry of Energy and Gazprom did not respond to requests for comment.
In January, EU sanctions led to the detention of propane tanks from major LPG producer Tengizchevroil at the Belarusian-Polish border due to lengthy customs procedures.
However, Russia’s oil and fuel export revenues increased to $15.8bn (Rbs1.3trn) in January, a $900m rise from December, as reported by the International Energy Agency.
This increase was driven by higher oil prices and stable export volumes.
Kazakhstan also contributed to a significant rise in oil production among the Organisation of the Petroleum Exporting Countries (OPEC)+ members in February, according to OPEC’s monthly report.
The collective output of OPEC+, which includes OPEC members, Russia and other allies, increased by 363,000 barrels per day (bpd) to 41.01 million barrels per day (mbbl/d).
Kazakhstan’s oil production reached record levels, surpassing its OPEC+ quota.
In February, the country’s production increased by 198,000bpd to 1.77mbbl/d, exceeding its designated OPEC+ ceiling by at least 300,000bpd.
