Kazakhstan’s KPI Suspends Atyrau Production: Here’s Why

Production at Kazakhstan Petrochemical Industries Inc. (KPI) in the Atyrau region has been temporarily halted due to a disruption in propane feedstock supplies. This interruption arose following an emergency incident at Tengizchevroil’s (TCO) facilities. The situation has resulted in the shutdown of KPI’s hot-circulation propane dehydrogenation unit and the propylene polymerization line.

Reasons for the Production Suspension

The recent disruptions at TCO, detailed by Kazakh media, were triggered by a fire incident that occurred on January 18, 2026. This fire necessitated the evacuation of over 450 workers and led to the suspension of oil production at both the Tengiz and Korolev fields.

Current Status and Response

• KPI is actively working to mitigate downtime.
• The company is sourcing alternative feedstock to resume operations.
• Plans are in place to secure approximately 11,000 tons of propane from other suppliers.

KPI currently holds 3,364 tons of propane stored in on-site bullets. Fortunately, the company asserts that it has enough finished product stocks to meet market demand and fulfill all existing contractual obligations.

Timeline of Events

As the situation evolves, KPI remains focused on addressing the propane supply challenge promptly to minimize the impact on its operations in Atyrau.