SIBUR, Samruk-Kazyna, KazMunayGas signed agreement of cooperation on petrochemical projects in Kazakhstan
The agreements regulate the establishment of joint ventures as part of an integrated gas chemical complex, which include, among others, the potential project to build a polyethylene facility and a polypropylene plant that is currently under construction.
SIBUR’s share in both JVs stands at 40%.
On October 7, Kazakh President Kassym-Jomart Tokayev and Prime Minister Askar Mamin met with SIBUR CEO Dmitry Konov.
At the meeting, Tokayev pointed out that deep carbon processing is one of the priority directions of the oil and gas sector of Kazakhstan.
The Kazakh President welcomed the signing of the agreement on cooperation on the polyethylene and polypropylene production projects:
- The Kazakh Government will provide any support to develop the projects upon my instruction
On the basis of the integrated gas chemical complex in Atyrau, in early 2022, it is planned to open a joint venture for the production of polypropylene with a capacity of 500 000 tons per year.
In the future, a joint project for the construction of a polyethylene plant with a capacity of 1.25 million tons per year will be implemented.
Dmitry Konov said:
- Kazakhstan has established a good base for the polypropylene production project
- The construction of the complex is close to completion
- We can see our merit in helping training the staff that has already begun
- Around 100 personnel of KazMunayGas have already been trained, we will proceed with it
- The launch of new facilities will also boost domestic polymer consumption in Kazakhstan and other member states of the EEU and improve export potential of high value-added products thanks to SIBUR’s existing infrastructure and competencies
Alik Aidarbayev, CEO of KazMunayGas, noted:
- This year, in the run-up to the 30th anniversary of the country’s independence, we are completing the construction of a polypropylene facility scheduled for launch in early 2022
- With the next step being the polyethylene project, we believe SIBUR to be a reliable partner possessing the necessary expertise and technology
- Moreover, this cooperation will enable Kazakhstan to enter new sales markets
SIBUR is also moving forward with a gas chemicals complex in the Amur region, near the Chinese border and far from any large urban hubs in its home country. The project, which counts Sinopec as a partner, is expected to cost at least $10 billion.