Tengizchevroil produces dry gas in addition to crude oil, LPG and sulfur. Dry gas production volume depends on crude oil output. In 2015, TCO sold 6.85 billion cubic meters (BCM) of dry gas.
Sales and Transportation
TCO ships dry gas using the TCO-owned pipeline from Tengiz to Kulsary. In Kulsary, this pipeline connects to the Central Asia to Center main gas pipeline. TCO prefers to sell dry gas under medium and long-term contracts to customers who are consumers of dry gas in their owned-facilities or owners of distribution pipeline systems which they use to deliver dry gas to retail consumers.
TCO delivers dry gas to customers in domestic and export markets by shipping through pipelines. Domestic and export sales are based on Incoterms 2000. Domestic sales are made "free carrier" (FCA) and export sales are made "delivered at frontier" (DAF) to TCO's pre-qualified customers.
In the Kazakhstan market, TCO supplies dry gas to Atyrau, Mangistau and West Kazakhstan oblasts.
TCO plans to continue to use long-term sales agreements for both export and domestic sales. TCO focuses on maintaining access to current markets and diversifying to new markets. In the future, TCO expects to supply dry gas to an Atyrau Oblast petrochemical complex project. TCO expects to initiate dry gas deliveries to the gas separation facility of the petrochemical complex later in this decade.
TCO developed its dry gas sales strategy based on best international industry practice. TCO endeavors to treat all potential customers for TCO dry gas in a structured and equitable manner. TCO needs to understand the participants in the full sales chain from TCO to the end users that consume TCO dry gas in order to meet TCO business review requirements. The TCO business review process is an integral element of the dry gas sales strategy.
Pre-Qualification Criteria for Potential Customers
TCO assesses all potential customers from commercial, financial, and technical perspectives. All potential customers must meet TCO's requirements under its business review process. TCO gives strong preference to establishing commercial business relationships with end users who consume dry gas in their facilities or own pipeline distribution networks used to deliver dry gas to retail customers. All potential customers must demonstrate organizational capability to qualify as TCO customers.
Documents to be submitted to assess dry gas inquiry