Sources: Russian-Kazakh joint venture suspends LPG supply from Orenburg plant because of EU sanctions

Kazrosgaz is a joint venture between Russia’s Gazprom, and Kazakhstan’s KazMunayGas. It has suspended production of liquefied gas and its supplies at the Orenburg gas processing facility in Russia this year because EU sanctions have been imposed on imports from Russia for propane and propane butane.

Kazrosgaz delivers raw natural gas from Kazakhstan's Karachaganak gas field to Orenburg gas treatment plant in Russia. The company usually sells its LPG to Europe through trading firms.

From December 19, last year, the European Union banned imports of Russian butane and propane. The sources claimed that this caused a disruption in the supply.

Sources claim that the Orenburg plant is yet to produce or export any LPG from Kazakh gas this year.

Kazrosgaz has sold around 15,000 tons of LPG a month to Afghanistan and Poland.

One source familiar with the situation said: "Volumes have not been produced and there hasn't been a final decision made on the future of operations."

The media representatives of Kazrosgaz, the Kazakh Ministry of Energy, and Gazprom have not responded to requests for comment.

Due to EU sanctions in January, tanks of Tengizchevroil, a major LPG producer, were held at the Belarusian/Polish border because the Polish customs took so long to check the origins of the cargo.

(source: Reuters)