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Kazakhstan Polyethylene Plant starts Construction

The construction of a polyethylene plant with an annual production capacity of 1.25 million tonnes and an investment of approximately USD 7.4 billion has officially begun at the National Industrial Petrochemical Technopark Special Economic Zone in the Atyrau Region of Kazakhstan. This significant project is part of Kazakhstan’s broader strategy to develop a robust oil and gas chemical industry cluster in the country’s western region, in line with the directive from President Kassym-Jomart Tokayev.

The groundbreaking ceremony was attended by prominent officials, including Sagyndyk Lukpanov, Member of the Senate of the Parliament, Serik Shapkenov, Akim of Atyrau Region, Askhat Khassenov, CEO of NC KazMunayGas JSC, Yerlan Akkenzhenov, Vice Minister of Energy, Olzhas Saparbekov, Vice Minister of Industry and Construction, Sergey Komyshan, Executive Director of SIBUR, and Zhao Tiezhu, Vice President of Sinopec Overseas Investment Holding.

Scheduled for completion by 2029, the plant is set to become the largest project in Kazakhstan’s manufacturing sector. Once operational, it will reduce the need for imported polyethylene by producing high-quality domestic products, while also boosting exports of high-value-added goods.

The plant is expected to contribute significantly to Kazakhstan’s economy, adding 1.2% to GDP growth and creating around 8,000 jobs during the construction phase. Once operational, the facility will employ approximately 800 people. Additionally, the project will have a multiplier effect on the national economy by stimulating the growth of related industries and enabling the domestic production of new end products.

Polyethylene, the most widely used plastic in the world, is integral to many sectors, including construction, packaging, automotive, and medical industries. The planned product line for the plant will feature a diverse range of up to 22 grades of polyethylene, with 40% classified as premium grade, thanks to partnerships with leading global companies such as Axens (France), Univation Technologies (USA), and Chevron Phillips Chemical (USA).

The project is being carried out by Silleno, a consortium owned by NC KazMunayGas JSC (40%), Sinopec Overseas Investment Holding (30%), and SIBUR Holding PJSC (30%). The financing for the plant will come from both shareholder equity and loans from international banks. The plant will use ethane extracted from dry gas at the Tengizchevroil fields as its primary feedstock, sourced from the KMG Gas Separation Complex.

This project is a key element in Kazakhstan’s plan to strengthen its manufacturing sector and expand its presence in the global market for high-value-added petrochemical products.

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