Trading & Distribution

The STP division, regarded as the core of LLP Kazpetroalliance’s activities, maximizes profits on midstream and downstream assets, propelling the business’s expansion. In the three crucial phases of supply, trading, and processing, STP takes the lead by promoting value-added business concepts. Effective management of the LLP Kazpetroalliance supply chain and other operations across all regions depends on the business sector. The STP division, regarded as the core of LLP Kazpetroalliance’s activities, maximizes profits on midstream and downstream assets, propelling the business’s expansion. In the three crucial phases of supply, trading, and processing, STP takes the lead by promoting value-added business concepts. Effective management of LLP Expressoil’s supply chain and other operations across all regions depends on the business sector.

Along with guaranteeing a steady flow of feedstock for the LLP Kazpetroalliance and MTBE facilities, STP collaborates with LLP Kazpetroalliance to accomplish its overarching business goals. Additionally, it finds export markets for surplus refinery products that are not needed by the Group. STP has taken over LLP Kazpetroalliance’s whole export crude entitlement while managing separate buy/sell market positions in the global crude and petroleum product markets. Another essential task that trading teams carry out for STP and other Group companies is price risk management. This integrated approach will be further strengthened by the LLP Kazpetroalliance’s current implementation of the SAP enterprise resource planning (ERP) system.

Our common interests are not limited to the Group. Strategic partnerships with governments, large oil corporations, and dealers have enabled STP to recognize and seize a variety of international commercial opportunities. In recent years, STP has been extending its trading network and fortifying long-standing relationships across Asia, the Middle East, Europe, Africa, and the Americas. LLP Kazpetroalliance encourages businesses to establish long-term partnerships by portraying itself as a national oil organization.

The availability of regular condensed feedstock is the largest risk from a supply and trading perspective. The segment maintains significant diversification in the sources of condensate supply in case of a possible disruption. Two more significant risks for this category are price volatility and counterparty creditworthiness. Hedging for exposure to lower the open position to a manageable level and conducting routine counterparty assessments are two mitigation measures.

These facilities continue to invest in expansion to guarantee that there are always enough, effective, and efficient refining and processing capacities available. They also take the necessary precautions to lower the risk of plant breakdowns and/or operational disruptions, such as implementing preventive maintenance programs, updating resource skill sets through ongoing and pertinent trainings, and conducting EHS reviews. To avoid hazards in processing facilities and inventory storage facilities, regular EHS audits are essential.

The trade and operational units of the segment are continuously monitored for compliance, and appropriate strategic and top-notch operational rules and processes are created and adhered to. With trading centers in Singapore, Dubai, and London, LLP Kazpetroalliance is steadily growing its global footprint in commodities and derivatives trading as part of its goal to become a truly global market participant. The Group anticipates increasing its global commercial presence in North and South America, Europe, and Africa by 2025. STP is acting to strengthen its position in the liquified natural gas (LNG) trading markets because it acknowledges that gas has the potential to become the “fuel of the future.