Kazakhstan suspends liquefied gas supplies to Ukraine

Kazakhstan company Tengizchevroil (TCO) stopped the supply of liquefied gas in the direction of Ukraine, reports enkorr information resource, citing several sources in the Ukrainian companies, holders of Term Contracts with Tengizchevroil.

According to the sources, the Kazakh trader is afraid of potential problems with the passage of wagons through the Russian-Ukrainian border due to Russian sanctions against Ukraine that enter into force on June 1.

"There is no permission to cross the Ukrainian border from the Russian side. There is no additional information now. No plans are confirmed for June," said the head of the trading company from Kyiv.

According to another trader, since May 25, the loading of already paid batches of gas that should have been shipped under Term Contracts for May has also stopped.

"They shipped everything that was supposed to cross the Ukrainian border in May. However, they are afraid to ship the rest," he said. The trader also added that the restrictions relate to both the Ukrainian consumers and transit cargoes. It is evident that the ban will affect other Kazakh producers.

According to the Consulting group A-95, TCO supplied to Ukraine 208.3 thousand tons of liquefied gas in 2018, which amounted to 15.8% of total imports. In April 2019, deliveries amounted to 21.5 thousand tons (19%). The main buyers of the TCO resource are WOG, Nadezhda, Socar, GT Group, Avtotrans, Avantage, and OKKO.

The total amount of imported LPG from Kazakhstan in 2018 was 257 thousand tons (15% of the overall Ukrainian market).

  Ukraine, Kazakhstan, Russia, Europe