Construction to begin on multi-billion-dollar polyethylene plant in Kazakhstan
The main construction work at the polymerization unit of the future polyethylene production plant (a joint project of KazMunayGas, SIBUR and Sinopec) in Kazakhstan will begin in October 2025, KazMunayGas said.
The implementation of the Polyethylene project was discussed during negotiations between KazMunayGas Management Board Chairman Askat Khasenov and the chairman of the Sinopec Group's board of directors, Hou Qi Jun, in Beijing.
Piling and foundation work continues at the construction site of the pyrolysis unit, KazMunayGas said.
"For the second key unit - polymerization and off-site facilities - an EPC contract was signed with a consortium of Maire Tecnimont (Italy) and Sinopec Shanghai Engineering (China). The start of main construction work [for the second unit] is planned for October 2025," the company said following the negotiations.
The Polyethylene project reached the final stage of basic engineering in the summer of 2024, and construction work started in September 2024.
Shares in the project are distributed as follows: KazMunayGas - 40%, SIBUR - 30% and Sinopec - 30%. The estimated project cost is $7.7 billion, with financing provided by shareholder funds and attracted loans from international banks.
The project for a polyethylene production plant with a capacity of 1.25 million tonnes per year will be implemented in conjunction with a gas separation complex and main pipelines. It was previously reported that the total cost of all projects would be around $11 billion, representing direct investment by KazMunayGas and its partners.
The raw material for polyethylene production will be ethane, which will be extracted at the gas separation complex being built by KazMunayGas from gas from the fields of Tengizchevroil.
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