Kazakhstan Prolongs LPG Export Ban For Six Months

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Kazakhstan has extended its export restrictions on liquefied petroleum gas (LPG), including propane and butane, to prioritize domestic supply. 

Minister of Energy, Almassadam Satkaliyev, signed the updated order on November 8, 2024. The restriction will take effect on November 14, 2024, and will remain in place for six months, The Caspian Post reports, citing foreign media.

The directive restricts LPG exports by road and rail but includes several exceptions. Subsoil users operating under production sharing agreements approved by the president of Kazakhstan, and with a stable tax regime, may continue exporting. This exemption ensures that operations that are legally bound and strategically significant can maintain international commitments.

Additionally, LPG products derived from Kazakh raw materials extracted from the Karachaganak field can still be exported as part of international treaties. 

Transit shipments that both start and end outside Kazakhstan remain unaffected by this restriction, allowing uninterrupted flow for goods passing through the country. 

Moreover, any LPG designated as humanitarian aid, subject to approval by the Kazakh government, is also exempt from the ban.

The Ministry of Energy explained that these restrictions aim to secure sufficient LPG availability within Kazakhstan to meet growing domestic needs.

Since May 2024, Kazakhstan has enforced similar restrictions on gas exports to address rising local demand for affordable energy sources.

In 2023, fuel shortages in Tajikistan, caused by Kazakhstan's decision to halt exports of liquefied petroleum gas (LPG), propane, and butane, have led to price hikes and impacted sectors such as transportation and food.